Author Topic: suggestion for an committee controlled open market operation fund  (Read 5750 times)

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Online binggo

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Re: suggestion for an committee controlled open market operation fund
« Reply #45 on: May 05, 2018, 03:12:06 pm »
as BTS price now grow up to above 2CNY, now it's time to adjust the rule to determine minimum collateral ratio in open market operation fund account.

we need the minimum ratio to increase with feed price, with a nonlinear decreasing rate。

I found below formula is likely a suitable choice, in the next price stage it will be used to determine the minimum collateral rate.



please advise if you have any ideas on this.

K=3.2 ,  when the feed price<2, should keep the MCR=4, not use the formula.


K=5, i suggest K=5,will have more price buffer.
« Last Edit: May 05, 2018, 03:23:03 pm by binggo »

Offline xeroc

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Re: suggestion for an committee controlled open market operation fund
« Reply #46 on: May 07, 2018, 09:27:04 am »
The general question here is how much risk is the BitShares DAC willing to take. Using a collateral ratio of only 2x would by high risk while 10x can be considered "low risk".
A reasonable answer is probably in between but highly depends on market conditions.
I do like the proposal linking the collateral ratio to the price level in general and would like to emphasis that any formula used today can (and should) be tuned an revised later on.
However, I am not a financial expert and lack the expertise to have a well-founded opinion about this and thus would ask to go rather high on collateral ratio and low on risk.
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Offline valtr

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Re: suggestion for an committee controlled open market operation fund
« Reply #47 on: May 09, 2018, 06:41:33 pm »
The general question here is how much risk is the BitShares DAC willing to take. Using a collateral ratio of only 2x would by high risk while 10x can be considered "low risk".
A reasonable answer is probably in between but highly depends on market conditions.
I do like the proposal linking the collateral ratio to the price level in general and would like to emphasis that any formula used today can (and should) be tuned an revised later on.
However, I am not a financial expert and lack the expertise to have a well-founded opinion about this and thus would ask to go rather high on collateral ratio and low on risk.
I also think that lower risk is better for us.

Offline clockwork

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Re: suggestion for an committee controlled open market operation fund
« Reply #48 on: May 11, 2018, 06:41:21 am »
I would like to see a precise formulation of this worker before going forward, also an overview of the history therewith would be appreciated. But I am but a lone voice it seems ..
How is the BTS inflow split so far? I know there was 2 million initially, plus worker pay plus bitCNY/bitUSD fee. What are the absolute numbers there, is it still necessary to keep market fees on the bitAsset?

To your question:
I can tell you if you formula is mathematically sound, but I can't tell you if it makes sense. Do you have any further explanation on the intended goals of the formula?

part of your question answered in case you missed it: https://committee.bitshares.works/2018/05/08/april-may-summary/

Offline Emma Lee

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Re: suggestion for an committee controlled open market operation fund
« Reply #49 on: June 29, 2018, 06:01:31 pm »
I was wondering if you saw my suggestion in the old post, and what you think about it?

Online paliboy

Re: suggestion for an committee controlled open market operation fund
« Reply #50 on: July 12, 2018, 01:57:11 pm »
The last report is over 2 months old, when can we expect new one?

Offline xeroc

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Re: suggestion for an committee controlled open market operation fund
« Reply #51 on: July 18, 2018, 01:25:01 pm »
The last report is over 2 months old, when can we expect new one?
I would like to see a break down too
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Offline xeroc

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Re: suggestion for an committee controlled open market operation fund
« Reply #52 on: July 25, 2018, 07:55:09 am »
@bitcrab: I'll have to remove my support for the worker "committee controlled open market operation fund".
The reasons are the *potential* conflict of interst that emerged with SPRING. Given that SPRING is a market
making fund, and the worker is funding another fund for providing liquidity, I believe it is best to not continue
subsidizing open market operations through a worker and leave the bussiness for SPRING (and other for-profit
competitors). This also puts you (@bitcrab) in a much nicer situation as you don't need to justify why you traded
when since you potentially could have SPRING trade against the open market worker.
Surely you understand my reasoning.
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Offline JonnyB

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Re: suggestion for an committee controlled open market operation fund
« Reply #53 on: July 25, 2018, 10:54:49 am »
makes sense, well done for opposing a clear conflict of interest
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Offline Thul3

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Re: suggestion for an committee controlled open market operation fund
« Reply #54 on: August 07, 2018, 09:09:39 pm »
That fund already being abused?

That funds was declared to be used to create bit assets and to buy BTS .

Currently you can clearly see that this fund isn't being used to buy BTS but to create a big buy wall together with the spring funds.

This is a clear market manipulation using funds which were never supposed to create buy walls.
As easy as it can be used as buy walls as easy it can be used as sell walls.

Controlling these amount of funds by a few people gives them power i don't agree with.

Offline Thul3

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Re: suggestion for an committee controlled open market operation fund
« Reply #55 on: August 08, 2018, 12:46:00 am »
Quote
2. operators need to take good care while operate with debt positions, as an initial rough principle, when BTS price is under 2CNY:
while collateral ratio > 4, borrowing more smartcoin is allowed.
while 4>collateral ratio>3, smartcoin income can be used to buy more BTS, but borrowing more smartcoin is not allowed.
while 3>collateral ratio, smartcoin income need to be used to reduce debt position, buying more BTS is not allowed.

Both accounts are clearly under Ratio of 3 and were not allowed to buy any BTS


Also big part of  commitee funds buy orders are also under spring trader buy orders .....

Offline Thul3

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Re: suggestion for an committee controlled open market operation fund
« Reply #56 on: August 08, 2018, 01:04:20 am »
usd commitee account already under 2.25 Ratio

https://wallet.bitshares.org/#/account/committee-usdoperator


« Last Edit: August 17, 2018, 07:28:02 pm by Thul3 »

Offline bitcrab

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Re: suggestion for an committee controlled open market operation fund
« Reply #57 on: August 08, 2018, 12:34:58 pm »

as BTS price now grow up to above 2CNY, now it's time to adjust the rule to determine minimum collateral ratio in open market operation fund account.

we need the minimum ratio to increase with feed price, with a nonlinear decreasing rate。

I found below formula is likely a suitable choice, in the next price stage it will be used to determine the minimum collateral rate.



please advise if you have any ideas on this.

this is the initial logic design at the start time of OMO, now when check it again, seems it is a little too conservative.

the OMO has an advantage that other funds do not have, it has daily income of 200K BTS and also bitCNY&bitUSD market fees, so it is more powerful to resist risks - when risk appear, we can use the new coming BTS and smarcoins to increase the ratio.

now the cnytrader team do the trading based on some other logic, mainly on the margin call price and the "bottom price" in our mind, we now suppose the price of about 0.75CNY is the bottom price and it's safe enough to set the margin call price at this point.

yes, tomorrow we'll use the new coming funds to increase the ratio.

and, actually I hope committee members from USD world can take care the committee-usdoperator account and do the bitUSD trading tasks, no problem to remove me from the multisig of committee-usdoperator.



 


Offline Thul3

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Re: suggestion for an committee controlled open market operation fund
« Reply #58 on: August 08, 2018, 12:56:20 pm »
Quote
this is the initial logic design at the start time of OMO, now when check it again, seems it is a little too conservative.

the OMO has an advantage that other funds do not have, it has daily income of 200K BTS and also bitCNY&bitUSD market fees, so it is more powerful to resist risks - when risk appear, we can use the new coming BTS and smarcoins to increase the ratio.

now the cnytrader team do the trading based on some other logic, mainly on the margin call price and the "bottom price" in our mind, we now suppose the price of about 0.75CNY is the bottom price and it's safe enough to set the margin call price at this point.

yes, tomorrow we'll use the new coming funds to increase the ratio.

and, actually I hope committee members from USD world can take care the committee-usdoperator account and do the bitUSD trading tasks, no problem to remove me from the multisig of committee-usdoperator.

You are already planning future RP funds which i disagree.Many members already stated that this fund is already to big and leave peanuts for other WP .

You can't take future RP funds hostage

Offline bitcrab

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Re: suggestion for an committee controlled open market operation fund
« Reply #59 on: August 09, 2018, 04:55:09 am »
Quote
this is the initial logic design at the start time of OMO, now when check it again, seems it is a little too conservative.

the OMO has an advantage that other funds do not have, it has daily income of 200K BTS and also bitCNY&bitUSD market fees, so it is more powerful to resist risks - when risk appear, we can use the new coming BTS and smarcoins to increase the ratio.

now the cnytrader team do the trading based on some other logic, mainly on the margin call price and the "bottom price" in our mind, we now suppose the price of about 0.75CNY is the bottom price and it's safe enough to set the margin call price at this point.

yes, tomorrow we'll use the new coming funds to increase the ratio.

and, actually I hope committee members from USD world can take care the committee-usdoperator account and do the bitUSD trading tasks, no problem to remove me from the multisig of committee-usdoperator.

You are already planning future RP funds which i disagree.Many members already stated that this fund is already to big and leave peanuts for other WP .

You can't take future RP funds hostage

the funds is not big enough considering it's obligation. and this WP is helping to maintain the BTS price and thus maintain the value of the BTS balance in each WP.

any WP that need fund can try to attract voting to make itself above the OMO WP and get money.