How is the first BitUSD created?

[biophil]

Ah, of course. I was imagining that the transaction that creates a BitUSD was somehow different from an ordinary short sell order. Thanks!

[toast]

People will just place bids and asks like in a normal marketplace, except all the sells are short sells. As soon as a "trade" occurs that's the price at which the short puts down collateral

[biophil]

Here's a question I've been wondering about:

When the Bitshares XT market first launches, there won't really be a market price for XTS since there won't have been any market transactions. So what will determine the collateral needed to short USD (and create BitUSD)? Will there be some hard-coded "starter-price" that disappears after the first XTS-BitUSD transaction?