Author Topic: Force Settlement Delay, Offset, Loop and other mechanics  (Read 124 times)

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Offline fractalnode

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Force Settlement Delay, Offset, Loop and other mechanics
« on: April 01, 2020, 09:43:35 am »
Hi guys.

I started to write a short message for a telegram, but the content increased so much that this forum post came out.

English is not my mother tongue, try to read my thoughts between lines ^^

What happens with a Force Settlement Delay of <=24h can be compared to "ignition advance angle"
in our engine this angle is zero or it is near zero
the engine is not running
for the engine to start, the following scenario must occur:

1) Force Settlement Delay must arouse *uncertainty as to whether it will be profitable or not and whether or not it would be better to buy from the market at a slightly higher price.

* Force Settlement is not a speculative tool, or at least it should not be. FS is a tool that sets the real price of an asset at the end of the day (or like a final judgment).

2) higher price on DEX, causes the appearance of DEX-CEX arbitration, even the manual one, because arbitration at DEXbot is still not ready [facepalm] - probably due to problems with financing or whatever ...
Only this step will start to push the price on CEX. Because outsiders will not buy BTS based on news. It is only when the DEX price starts to rise regularly and people from outside join it slowly - they will be attracted by the formation on the chart of small but stable growth - then they start reading about how.bitshares.works. - Who remembers new people on the telegram asking for beautiful organic growth? - I remember.

3) Loop in the form of a continuous hassle Force Settlement is like wheel slip in mud or on snow. This force should push us up, but it doesn't. To prevent this, we should change the delay periods in such a way that:

(-) 12h, 24h is for the time of market maturity, strong liquidity, bear market

(+) 34h, 42h, 48h, 55h at a time when the bull market wakes up, or when "the wheel is sliding".

In sum. The more bearish the market is, the lower the delay should be and vice versa. Today we should have at least 42h delay or more, in my opinion.

I also think that we should not touch such options as moving EMA, SMA for Settlement Offset, this should always be 1% as compensation, not fixed 3,5 or 8%

# auxiliary events are liquidity on DEX markets, e.g. to BTC, so that arbitration is possible at all. Besides, at this level of development we should have several dozen people using arbitration (DEX-CEX) with bots and several hundred people using bots on DEX. BitShares GUI and DEXBot should be like brother and sister to each other, and every single user should be aware that they can use their own bot on their own PC / Mac / Linux and even Android TV!

Please share your thoughts and comment
« Last Edit: April 01, 2020, 09:58:04 am by fractalnode »

Offline binggo

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Re: Force Settlement Delay, Offset, Loop and other mechanics
« Reply #1 on: April 01, 2020, 12:28:57 pm »
https://bitsharestalk.org/index.php?topic=32176.0

Bear and bull is decided by the market, no one know when and where it is.

In my opinion, force Settlement shouldn't exist, it is a tool of planned economy,will kill the active of market and the ecology of bitasset.

Most of the stablecoin didn't have it, but they did more and more better than BTS.

Consensus and enough collateral is the two legs of stablecoin,it is very easy to understand.

Also somebody still worried about the DEX price will get out of control,that's because BTS didn‘t have any financial instruments.

Force Settlement just like:

The price of house in the market is very high, so let's Force Settlement the mortgage in the bank,get the collateral which is house, then sell them into the market.



« Last Edit: April 01, 2020, 01:02:04 pm by binggo »

Offline litepresence

Re: Force Settlement Delay, Offset, Loop and other mechanics
« Reply #2 on: April 01, 2020, 02:35:59 pm »
Please share your thoughts and comment

I am not of the opinion that monetary policy should change over time.  Nor should it change for the purposes of marketing or expanding monetary supply. 

I think if you wanted such an instrument and you believe it is indeed a path forward then you should create it AT ONSET with such clearly DECLARED and PERMANENT parameters.  Then set it loose on the market and see if there is interest.   Anyone can create an MPA and all off the features you have mentioned could be part of the price feed scripts for that MPA; perhaps with the owner of the asset having additional mechanical control over the force settlement time.  Though the feed producers themselves could be multisig owners to distribute those mechanics.

I am a strong believer that parameters of MPA's - once created - should rarely, and if ever:  Only be "tweaked" if there are existential critical exploits to be patched.    I believe in stability, non politicization of monetary policy above all else.

My price feed scripts are open source and could easily be forked for your purposes.  I encourage you to compete with my products which do not include such "features".    But once you set it loose... I strongly encourage you to stop tweaking because that destroys the sense that the product is mechanical in nature and can be trusted - by long term holders, as a store of value - over time.

The aim of an MPA, as I believe, is to eliminate - with as high certainty as possible - the 3rd party human element, which can flip levers to change monetary policy over time; thereby "picking winners and losers"
« Last Edit: April 01, 2020, 02:49:40 pm by litepresence »