Author Topic: proposal to create bitXCD  (Read 5888 times)

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Offline bitcrab

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Re: proposal to create bitXCD
« Reply #30 on: December 18, 2017, 03:23:09 pm »
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.

Offline fav

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Re: proposal to create bitXCD
« Reply #31 on: December 18, 2017, 03:28:55 pm »
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
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Offline bitcrab

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Re: proposal to create bitXCD
« Reply #32 on: December 18, 2017, 04:05:57 pm »
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.

Offline yvv

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Re: proposal to create bitXCD
« Reply #33 on: December 18, 2017, 04:35:53 pm »
Quote
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)?

Offline yvv

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Re: proposal to create bitXCD
« Reply #34 on: December 18, 2017, 04:49:20 pm »
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.

Offline pc

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Re: proposal to create bitXCD
« Reply #35 on: December 18, 2017, 05:48:06 pm »
Quote
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.
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Offline pc

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Re: proposal to create bitXCD
« Reply #36 on: December 18, 2017, 05:53:39 pm »
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.
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Offline yvv

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Re: proposal to create bitXCD
« Reply #37 on: December 18, 2017, 06:09:46 pm »
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.

Offline bitcrab

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Re: proposal to create bitXCD
« Reply #38 on: December 19, 2017, 02:42:44 am »
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.


Offline pc

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Re: proposal to create bitXCD
« Reply #39 on: December 19, 2017, 07:23:33 am »
Thanks [member=23]bitcrab[/member] . I'm not an economics expert, so I suppose this makes sense. :-)
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Offline paliboy

Re: proposal to create bitXCD
« Reply #40 on: December 19, 2017, 12:12:10 pm »
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.

Offline yvv

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Re: proposal to create bitXCD
« Reply #41 on: December 19, 2017, 12:59:05 pm »
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.

Offline Customminer

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Re: proposal to create bitXCD
« Reply #42 on: December 26, 2017, 01:19:11 pm »
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.
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Offline xeroc

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Re: proposal to create bitXCD
« Reply #43 on: December 28, 2017, 01:18:07 pm »
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
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Offline Ravid

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Re: proposal to create bitXCD
« Reply #44 on: December 28, 2017, 03:12:56 pm »
[member=23]bitcrab[/member], 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