proposal to create bitXCD

[R]

so... any news on bitxcd?

It's operational, however no news regarding its adoption yet, it has far greater collateral than that which the FIAT XCD issuers provide so that's got to be appealing..

[fav]

so... any news on bitxcd?

[kenCode]

bitXCD support in the PalmPay point-of-sale app is now complete.
 

 
update for wednesday, april 25, 2018:
 
PalmPay UI and UX are getting a huge makeover right now.
www.PalmPay.io

The Settings screen has been completely replaced and reorganized which should make initial setup, security and backups a LOT easier.

The homescreen now resizes/scales properly for merchants that don't accept 8 different coins.

The transactions screen has also been completely recoded and now supports the exact keyed in amounts from the calculator screen for easier tax, accounting and reporting. Filter and Search tools have been added. A secondary backup system added for transaction info and app settings.

A few little bug fixes here and there, and less mobile data is used.

The QR code screen has been cleaned up a lot and the timer redone. NFC support being added soon as well.

eReceipts have been totally redesigned. PalmPay now sends a very nice looking detailed receipt right to the customer's phone, complete with item lines, business address/contact info, custom message to the customer and even the merchant logo image shows on the customer receipts now.

bitXCD (East Caribbean Dollar), bitMXN and BTS are now supported as output currencies for the merchant.

Agorise will release all these features in PalmPay v1.1 in the next week or so on keybase and google play and then immediately move on to the Carbon wallet launch the following day.
 
@bitcrab @Stan Ping me with any questions; I have to visit Antigua soon to assist with rollouts, would love to help where needed.

[kenCode]

Adding bitXCD as a customer input and merchant output asset choice in PalmPay this week.
PalmPay v1.0.3 will include it.
 
Discussion on telegram: http://t.me/Agorise

[R]

What's very interesting to note is that the ECCB's strategic plan for 2017-2021 lists their minimum foreign reserves collateral as between 60-80%, where as bitXCD can provide 101% bitUSD collateral & 175% BTS collateral, we're on track to massively out perform the ECCB & the XCD has a GDP of ~$5B which would be great for Bitshares!

https://www.eccb-centralbank.org/files/documents/Stategic_Plan/ECCB_Stategic_Plan_2017P2.compressed.pdf

[Ravid]

@bitcrab, it would be amazing if you could also provide some insight on what is happening on the Free Trade Zone's side (e.g. how do they plan to implement it, will they recognize it as a real currency, how much time they think it'll take etc.) if you know anything. I find this whole thing really fascinating

[xeroc]

For you information: pybitshares now can publish feeds for XCD .. you can use uptick for that with:

    uptick -x newfeed --cer 0.1 XCD 2.7 XCD/USD

the latest release of bitshares-pricefeed also knows how to do XCD. you can get the default config using:

    bitshares-pricefeed create XCD

then modify config.yaml

[R]

why do you need a MPA then? if the price is fixed, just make a UIA and add a sell order at this price

MPAs are massively more decentralized than UIAs - an UIA would introduce centralized risk, not good.

[yvv]

Feed lifetime   525600 min(1 year) #to make a 'static' price

3.a if in future XCD relax peg to bitUSD, one choice for us is to create another smartcoin which peg to XCD but backed by BTS to replace bitXCD

If the peg changed in the future, wouldn't it be enough to start feeding new price? I understand that in such a case feed lifetime set to 1 year could be problematic. Could we change it to something more reasonable, e.g. 1 month?  I guess that this kind of stuff doesn't change overnight.

No, it would not be enough just to start a new price. MCR would probably need to be changed too.

[paliboy]

Feed lifetime   525600 min(1 year) #to make a 'static' price

3.a if in future XCD relax peg to bitUSD, one choice for us is to create another smartcoin which peg to XCD but backed by BTS to replace bitXCD

If the peg changed in the future, wouldn't it be enough to start feeding new price? I understand that in such a case feed lifetime set to 1 year could be problematic. Could we change it to something more reasonable, e.g. 1 month?  I guess that this kind of stuff doesn't change overnight.

[pc]

Thanks @bitcrab . I'm not an economics expert, so I suppose this makes sense. :-)

[bitcrab]

I'm sure the info is available somewhere, but I'm too lazy to go searching... :-/ Nevertheless, I'm seriously interested in answers to the following questions:

1. What is the economic sense in an asset that has a fixed exchange rate to USD? Why should anyone not simply use USD instead?
2. Where does the "magic" value 2.7 stem from? Is there an economic reason for that value?
3. Can we be extremely sure that this value is not going to be redefined in the future?
3.a If we can't, we should have a plan how to handle such changes. Preferrably come up with a plan before creating the asset.
3.b If we can be sure, see question 1.

1. pegging with a powerful fiat is one of the ways of fiat design, HKD is also such kind of fiat, why HongKong government does not directly adopt USD or GBP but issue HKD instead? it's not easy to summarize but it make sense. if we would like to push CFTZ to come into Bitshares world, bitXCD is a better key that we can give to them than bitUSD.

2. officially defined.
3. not 100% sure, but 99.99% sure.
3.a if in future XCD relax peg to bitUSD, one choice for us is to create another smartcoin which peg to XCD but backed by BTS to replace bitXCD

and if we create bitXCD which peg to USD in a fixed rate, we are actually helping XCD.

[yvv]

I'm sure the info is available somewhere, but I'm too lazy to go searching... :-/ Nevertheless, I'm seriously interested in answers to the following questions:

1. What is the economic sense in an asset that has a fixed exchange rate to USD? Why should anyone not simply use USD instead?
2. Where does the "magic" value 2.7 stem from? Is there an economic reason for that value?
3. Can we be extremely sure that this value is not going to be redefined in the future?
3.a If we can't, we should have a plan how to handle such changes. Preferrably come up with a plan before creating the asset.
3.b If we can be sure, see question 1.

I guess, questions 1-3 should be addressed to Caribbean governments. But yes, we should be ready for scenario when they decide to relax the peg to USD.

[pc]

I'm sure the info is available somewhere, but I'm too lazy to go searching... :-/ Nevertheless, I'm seriously interested in answers to the following questions:

1. What is the economic sense in an asset that has a fixed exchange rate to USD? Why should anyone not simply use USD instead?
2. Where does the "magic" value 2.7 stem from? Is there an economic reason for that value?
3. Can we be extremely sure that this value is not going to be redefined in the future?
3.a If we can't, we should have a plan how to handle such changes. Preferrably come up with a plan before creating the asset.
3.b If we can be sure, see question 1.

[pc]

MAXIMUM SUPPLY 100,000,000,000

I know that it's set to the same value for other smartcoins but is there any technical or practical reason to limit it to 100 billion? Can it be changed later?

The technical reason is that the total supply given as a multiple of the smallest possible unit should fit into an IEEE double floating point value, which has 52 bits of precision. With 4 decimals, 100bn is the largest power of 10 that fits into 52 bits.

IEEE double is the only native numeric type in some programming languages, most importantly JavaScript.

[yvv]

A necessity to define collateral asset during creation of smart coin is a very pity weakness of bitshares. Hopefully, bitshares-3.0 (or EOS) will be more flexible with the choice of collateral asset.

[yvv]

MSSR:100.5% #even when margin call happen, shorters will lose little.

WOW! 200x leverage! This is cool. But what if the peg of XCD to USD will be relaxed in the future (like it was in the past)?

[bitcrab]

abit created ABITS.CNY and we tested it in mainnet, seems everything is fine.

I updated the parameter suggestion as well:

MAXIMUM SUPPLY 100,000,000,000
Precision 4
Feed lifetime   525600 min(1 year) #to make a 'static' price
Minimum feeds   7
Force settlement delay   1 min   #to enable instantly USD/XCD conversion, should be as short as possible
Force settlement offset   0.1%   #with the fixed rate shorters have little risk, so the 'service fee' should be low.
Max force settle vol   5%            # need to be larger than other BTS backed smartcoins
Short backing asset   USD

and, witnesses need to feed as below:

1XCD = 0.37037 USD
MCR:100.1%  #should be higher than but close to 100%
MSSR:100.1% #even when margin call happen, shorters will lose little.

anyone have concern on this are welcome to test at ABITS.CNY and feedback.

[fav]

due to the too short time setting the last proposal is not approved, in this period some suggestive ideas emerged and it seems we need to consider more on the back asset selection.

below is the XCD/USD rate chart in last ten years, we can see that from 2011 the rate is fixed to 0.37037 USD/XCD with some minor fluctuation.



the design logic/purpose of XCD(not bitXCD) is to peg USD, if we create bitXCD which has a fixed rate to bitUSD, it would be great, right?

I tried to set a newly parameter as below after went through all the ideas about it.

MAXIMUM SUPPLY 100,000,000,000
Precision 4
Feed lifetime   1year #to make a 'static' price
Minimum feeds   7
Force settlement delay   10 min #to enable instantly USD/XCD conversion, should be as short as possible
Force settlement offset   0.3%   #with the fixed rate shorters have little risk, so the 'service fee' should be low.
Max force settle vol   5%          # need to be larger than other BTS backed smartcoins
Short backing asset   USD

and, witnesses need to feed as below:

1XCD = 0.37037 USD
MCR:100.1%  #should be higher than but close to 100%
MSSR:100.5% #even when margin call happen, shorters will lose little.

any ideas on this?
and, this solution is not tested yet, is it possible to do the test in several days to ensure it is bug free?

why do you need a MPA then? if the price is fixed, just make a UIA and add a sell order at this price

[bitcrab]

there is an smartcoin KITTY.CNY which is backed by CNY in mainnet, it can be fed price in CNY and can be borrowed, but the force settling feature is disabled so not able to test.

[bitcrab]

MAXIMUM SUPPLY 100,000,000,000

I know that it's set to the same value for other smartcoins but is there any technical or practical reason to limit it to 100 billion? Can it be changed later?

AFAIK, no, this is relevant to precision and can not be changed, if at first set precision = 2, then the max supply can be 10000 billion

[paliboy]

MAXIMUM SUPPLY 100,000,000,000

I know that it's set to the same value for other smartcoins but is there any technical or practical reason to limit it to 100 billion? Can it be changed later?

[bitcrab]

due to the too short time setting the last proposal is not approved, in this period some suggestive ideas emerged and it seems we need to consider more on the back asset selection.

below is the XCD/USD rate chart in last ten years, we can see that from 2011 the rate is fixed to 0.37037 USD/XCD with some minor fluctuation.



the design logic/purpose of XCD(not bitXCD) is to peg USD, if we create bitXCD which has a fixed rate to bitUSD, it would be great, right?

I tried to set a newly parameter as below after went through all the ideas about it.

MAXIMUM SUPPLY 100,000,000,000
Precision 4
Feed lifetime   1year #to make a 'static' price
Minimum feeds   7
Force settlement delay   10 min #to enable instantly USD/XCD conversion, should be as short as possible
Force settlement offset   0.3%   #with the fixed rate shorters have little risk, so the 'service fee' should be low.
Max force settle vol   5%          # need to be larger than other BTS backed smartcoins
Short backing asset   USD

and, witnesses need to feed as below:

1XCD = 0.37037 USD
MCR:100.1%  #should be higher than but close to 100%
MSSR:100.5% #even when margin call happen, shorters will lose little.

any ideas on this?
and, this solution is not tested yet, is it possible to do the test in several days to ensure it is bug free?

[mike623317]

How exactly do we see this being used, is it aimed towards large business transactions rather than small personal use?

I love this real world business use. Thank you bitcrab for pulling that together.

mike

[fav]

@bitcrab talked with xeroc, the proposal is already in review and locked, it's impossible to approve it now.

please add more time to a new one

[fav]

proposal created and is waiting for approval:
https://cryptofresh.com/p/1.10.6006

witnesses please prepare the price feeding for bitXCD, with the assumption that 1USD=2.7XCD.

trying to approve, gives out an error on my client

[Ravid]

I think this might be the single biggest contribution to the platform since the invention of the platform itself. Thank you so much

[bitcrab]

This is just awesome! Real world use - finally we are breaking through!
I'm just curious how in the world do you meet such people so casually?

I met Mr.Zheng in one meetup, we discussed the possibility to issue a currency for CFTZ, at first he tend to adopt the USDT way and issue the currency as a ERC20 asset with bank balance, after we discussed a lot finally we switch to the Bitshares smartcoin solution.

[bitcrab]

proposal created and is waiting for approval:
https://cryptofresh.com/p/1.10.6006

witnesses please prepare the price feeding for bitXCD, with the assumption that 1USD=2.7XCD.

[Ravid]

plan to create bitXCD with below setting, as same as bitUSD:

MAXIMUM SUPPLY 100,000,000,000
Precision 4
Feed lifetime   24h
Minimum feeds   7
Force settlement delay   24h
Force settlement offset   1%
Max force settle vol   0.5%
Short backing asset   BTS

This is just awesome! Real world use - finally we are breaking through!
I'm just curious how in the world do you meet such people so casually?

[bitcrab]

plan to create bitXCD with below setting, as same as bitUSD:

MAXIMUM SUPPLY 100,000,000,000
Precision 4
Feed lifetime   24h
Minimum feeds   7
Force settlement delay   24h
Force settlement offset   1%
Max force settle vol   0.5%
Short backing asset   BTS

[xeroc]

1) BTS as short back asset
in this way bitXCD and bitUSD are separated, the peg rely on the price feeding, witnesses need to get BTS price in USD and then divide it by 2.7 and feed to the system, for convenient bitUSD/bitXCD exchanging, we need some big traders to provide the liquidity from both sides.

2)bitUSD as short back asset
this way bring more complex, when one need borrow bitXCD, he need to hold bitUSD first, and while borrowing bitXCD by putting bitUSD into collateral, if set collateral ratio >100%, then actually the cost for borrowing bitXCD is higher then normal smartcoin borrowing, if set collateral ratio =100%, then margin calling may easily happen if some wrong price feeding happen. some risks hide there.

On 2)

The collateral of 100% could be done since the price feed is denoted in
XCD/USD which is 'static' and doesn't move at all. Technically, however,
you can only go as low as 100.01% (to my knowledge).

Also, the borrow button of the bitshares-ui could be changed so that it
borrows bitUSD first and right away puts it into call position for XCD.
That would be a transaction with two "call_update" operations and thus
results in twice the fee (which is really low though).

Of course, going route 1) is easier for the end user, still.

[binggo]

我们是否需要分析一下官方汇率与民间汇率的问题?!
因为民间汇率有时与官方汇率偏离巨大，尤其是这种固定式汇率.
第二个方案存在的风险性太大，个人不建议
第一个方案采用bitusd的1/2.7为固定喂价标准，以bts为直接缓冲质押.
民间汇率问题可由当地承兑商间接解决，可能会出现大范围的锚定偏离.即出现bitxcd与xcd的大范围兑换变动.不知道加勒比方面是否接受这种锚定偏离.
或者是否由加勒比银行体系或大型第三方金融机构介入作为bitxcd承兑商，来维持bitxcd与xcd的兑换比例？！

[binggo]

how about you fix bitCNY first?

I don't know why are you doing this over and over again?! That's interesting.

[rambunctious-1]

Jerry,
I would love to connect with you to discuss the ccrc.io initiative we are building with Barbuda. Let's align our efforts and make sure that BTS does become the leader in the Caribbean for an alternative to what they have today.

[mike623317]

Fantastic work bitcrab. This is very exciting.

I wonder what sort of volumes we would possibly be talking about?

[fav]

how about you fix bitCNY first?

[yvv]

if set collateral ratio =100%, then everybody can issue infinite amount of bitXCD

FTFY

[bitcrab]

what we need:

make bitXCD a smartcoin well pegged to USD with a fixed rate of 1:2.7, it can be easily exchanged with bitUSD.


1) BTS as short back asset
in this way bitXCD and bitUSD are separated, the peg rely on the price feeding, witnesses need to get BTS price in USD and then divide it by 2.7 and feed to the system, for convenient bitUSD/bitXCD exchanging, we need some big traders to provide the liquidity from both sides.

2)bitUSD as short back asset
this way bring more complex, when one need borrow bitXCD, he need to hold bitUSD first, and while borrowing bitXCD by putting bitUSD into collateral, if set collateral ratio >100%, then actually the cost for borrowing bitXCD is higher then normal smartcoin borrowing, if set collateral ratio =100%, then margin calling may easily happen if some wrong price feeding happen. some risks hide there.

this way really show more power of bitshares, but this is not the most important thing, what we need is a stable, bug-free and market tested solution.

I'll prepare to create bitXCD in 1) way if no more suggestive discussions.

[Brekyrself]

Great news, thanks for sharing.

In regards to backing it with BitUSD, what happens if the 1USD=2.7XCD rate is changed or abolished completely?  How quickly can BitShares react?  What would be the procedure to do so? 

Perhaps it is best to keep it separate in case some issue arises with the bitUSD market.  This would isolate any major bugs/issues/etc... if something were to happen, not causing a cascade effect.

[oxarbitrage]

wow, this really looks amazing for bitshares, its the kind of business i personally love to see. many thanks @bitcrab for bringing them on and i hope we can give all the support they need starting by creating the asset 

[ripplexiaoshan]

  It is always good to use blockchain to resolve real world issues.  I would like to travel there and spend bitCXD without worrying about exchanges.

[xeroc]

I like the idea of backing it with bitUSD because it allows to show some more power of bitshares.
For instance, you can make the committee publish the feed once every year and have it expire after a year

We could also reduce the min. collateral requirments and the short squeeze protection ratio ..

[白衣]

Bit系列应该早日覆盖全球各国货币，让Bitshares成为全球民间资产汇兑中心

[bitcrab]

Since XCD is pegged to USD, is it good to create bitXCD and back it with bitUSD?

then how to set the smartcoin parameters?

Witnesses can feed a static price against base(USD). May still need to feed dynamic CER.

By the way, perhaps there are bugs about non-BTS backed assets, last year I've been playing with KITTY.CNY and remember there are some issues. Best make some tests on testnet first.

then how much bitUSD need to be put into collateral to generate 2.7bitXCD? 1? so MCR need to be set to 100%, MSSR also 100%?
is there any risks? and what's the pros of this way?

I understand the pros of this way, when one like, he can easily convert his bitUSD to bitXCD(by borrowing) and vice versa(by force settlement or close position), no need to cultivate USD/XCD market.

then it will be better to set the DELAY FOR FORCED SETTLEMENTS to a short period to enable users to do the conversion instantly.

but if there are issue in price feeding there will be risks, if there is option to fix the settlement price then this is a perfect way.

[abit]

Since XCD is pegged to USD, is it good to create bitXCD and back it with bitUSD?

then how to set the smartcoin parameters?

Witnesses can feed a static price against base(USD). May still need to feed dynamic CER.

By the way, perhaps there are bugs about non-BTS backed assets, last year I've been playing with KITTY.CNY and remember there are some issues. Best make some tests on testnet first.

[bitcrab]

Since XCD is pegged to USD, is it good to create bitXCD and back it with bitUSD?

then how to set the smartcoin parameters?

[abit]

Since XCD is pegged to USD, is it good to create bitXCD and back it with bitUSD?

[xeroc]

Cool.

All that is needed in order to create the symbol quickly is
* the fees
* the symbol name
* the precision
* collateral asset

(the latter three are important as they cannot be changed later on)

Also, the flip switch for smartcoin needs to be activated and cannot be flipped any more later on.

[bitcrab]

in the past several months I have met Mr. Zheng Xiaojun several times, he is the board member of the Caribbean Free Trade Zone and is very interested in blockchain application. we discussed a lot about the possibility on creating one blockchain currency to solve a lot of problem generated in this area as the finance service there is far from developed.

I introduced Bitshares smartcoins to him and finally he agreed that this is a great solution to solve the problems in payments, exchange in that area. he would like to cooperate with Bitshares community to issue bitXCD and make it wildly used.



XCD is the symbol of Eastern Caribbean dollar, which is designed to peg USD at the rate 1USD=2.7XCD, more detail of XCD can be found here: https://en.wikipedia.org/wiki/Eastern_Caribbean_dollar

I suggest we create bitXCD soon to open a big area for smartcoin.

Mr. Zheng(left 4) and his team with Prime Minister of Dominica and other government officials


Mr.Zheng and his team with Prime Minister of Saint Lucia


Mr.Zheng is also the lead of World Blockchain Organization and Caribbean Institude of Block Chain Industry.