Author Topic: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions  (Read 11643 times)

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Offline ripplexiaoshan

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Q1 report:


Assets in account
BTS 92,215,801
bitCNY -12,353,484
bitUSD -1,619,888USD

Related accounts:
spring-team spring-trader spring-operator spring-finance

Besides, as BTS share holders, SPRING received a few sharedrops such as whaleshares BEOS, etc.. these tokens belong to SPRING holders. However, as these tokens have low liquidity, their value is not counted for now.

FUND net value:
The net value of the first three months is 0.893, 0.939, 0.839.

The plan of SPRING:
The best action in bear market is no action. However, we think the price of BTS is very close to the bottom, and we will continue to persuade people to join SPRING FUND to buy more BTS. Also, we are considering to support the development of third party APPs on bitshares, such as chess and cards games.
BTS committee member:jademont

Offline armin

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yo bitcrab will BSIP42 be implemented on all committee bitassets?

Offline bitcrab

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updated witnesses voting, supported witnesses that take positive actions on implementing BSIP42 on bitUSD.
Email:bitcrab@qq.com

Offline binggo

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wether the fund can vote is an internal problem among the fund holders.


If the fund wants to vote a public BSIP, it will not be an internal problem among the fund holders,.

the holders give the right of use to the foud, but not the voting right and the ownership to the foud, if the foud wants
these rights all,the foud need to public all the transfer agreement and the article of this foud.

Open and fair is the basic requirement.

Please give the details.

Offline Thul3

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Quote
if there's consensus among the fund holders, why can't the fund vote?

Consensus of all fund owners ?I highly doubt it.
You are using funds from people who are invested in spring fund but don't agree on BSIP42.

I know personly at least 1 fund holder who is against it

Offline bitcrab

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wether the fund can vote is an internal problem among the fund holders.

if there's consensus among the fund holders, why can't the fund vote?

no one can deprive the fund holders of their voting rights.

Email:bitcrab@qq.com

Offline binggo

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BSIP42 works fairly well for bitCNY, now it's time to also apply it to bitUSD, we'd like to support the witnesses that take positive actions on this.

we also hope that witnesses can publish the price feeding algorithms, that can help voters to judge.

DON'T AGREE.

The spring Fund shouln't have the voting right, every witness and committee members should know this very clearly.

If the spring found want to have the voting right,  The sping found should publish the voting procedure of the spring holders.

A foud shouldn't become a  political tool.
« Last Edit: September 22, 2018, 12:01:55 am by binggo »

Offline bitcrab

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BSIP42 works fairly well for bitCNY, now it's time to also apply it to bitUSD, we'd like to support the witnesses that take positive actions on this.

we also hope that witnesses can publish the price feeding algorithms, that can help voters to judge.
Email:bitcrab@qq.com

Offline bitcrab

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updated witnesses voting. we would like to support the witnesses that work well in implementing BSIP42.

as now bitCNY is still in obvious premium(>1%), we select to vote the witnesses that always publish price which is higher than median.

we'll keep on checking the price feeding status and update the witness voting.
Email:bitcrab@qq.com

Offline bitcrab

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actually BSIP42 redefined "feed price" as something like "guide price",  not the exact market price.

there's someways to get smartcoin premium, for bitCNY, you can

1. get the bitCNY deposit/withdraw fee from magicwallet and then calculate out the bitCNY premium.

or

2. from exchange like AEX or ZB get BTS price in CNC or QC, it can be regarded as BTS price in fiat as CNC and QC are IOU of CNY.  with the BTS price in bitCNY, you can calculate out the premium, 
Email:bitcrab@qq.com

Offline sschiessl

Who is the judge of what the correct fiat price is?
How did you calculate the 9% from the 2%? Could you elaborate that please?

logic:

1. 2% premium means bitCNY is already in serious shortage, need strong negative feedback.
2. when feed price < DEX price*MSSR, it is always safe as the margin called orders can always be eaten.

MSSR = 1.1, to be careful, we select 9%, not 10% as the metric.


Thanks for the clarification. It boils down to the questions now how the premium is defined. As a premium I would normally understand difference of the last market trade against the feed price.

If I understand correctly, you talk about premium here and mean the difference of the feed price against a fair FIAT price. How is the fair FIAT price defined?

My assumption was always that the fair FIAT price is exactly what the feed price of the witnesses *should* be, thus you are creating a formula which implicitly depends on the target unknown
Code: [Select]
feed_price = some_formula( feed_price, MSSR, ... );
In other words, your price feed formula is now a fully implicit differential equation and must be approximated numerically (with newton or similar).

If my above assumption is correct:
IMO a proper mathematical model should be defined for the price feed. I have an applied maths background and connections to the  mathematical economics department at the FAU university here in Erlangen / Nuremberg.  Are you guys interested in establishing a collaboration here? This is of course no short term approach, but I think it would greatly help in evolving the price feed. It would be e.g. a nice topic for a masters thesis.

If my above assumption is not correct:
How is the fair FIAT price and therewith the premium decided upon?
« Last Edit: September 04, 2018, 09:04:05 am by sschiessl »

Offline bitcrab

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Who is the judge of what the correct fiat price is?
How did you calculate the 9% from the 2%? Could you elaborate that please?

logic:

1. 2% premium means bitCNY is already in serious shortage, need strong negative feedback.
2. when feed price < DEX price*MSSR, it is always safe as the margin called orders can always be eaten.

MSSR = 1.1, to be careful, we select 9%, not 10% as the metric.
Email:bitcrab@qq.com

Offline gghi

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SPRING management team is considering to vote witnesses to push the implementation of BSIP42 if the voting WP is accepted at 7th Sep.

we'd like to adopt one metric to judge whether one witness work well on implementing BSIP42: if bitCNY has a more than 2% premium than fiat, then the fed price should be at least 9% higher than BTS price in DEX. currently only bitCNY feed price is considered.

if SPRING holders have any thoughts on this plan, please comment here.

   Support

Offline gghi

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Who is the judge of what the correct fiat price is?
How did you calculate the 9% from the 2%? Could you elaborate that please?

   举例论证公式效果,宽松目标负2%,加速因子N=3
当溢价负0.02时(折扣2%),加速因子喂3。理想喂价 = BTS市场价 * (1-0.02+0.02)^3=BTS市场价 *1^3=BTS市场价 *1,结论:目标达到理想状态,无需调整。
当溢价负0.01时(折扣1%),加速因子喂3。理想喂价 = BTS市场价 * (1-0.01+0.02)^3=BTS市场价 *1.01^3=BTS市场价 *1.030301,结论:市场价提高3%,接近理想目标。
当溢价0时,加速因子喂3。理想喂价 = BTS市场价 * (1+0.02)^3=BTS市场价 *1.02^3=BTS市场价 *1.0612,结论:市场价提高约6%,很满意,也很安全。

当溢价0.01时,加速因子喂3。理想喂价 = BTS市场价 * (1.01+0.02)^3=BTS市场价 *1.03^3=BTS市场价 *1.092727,结论:市场价提高约9.2%,满意,也很安全。
当溢价0.02时,加速因子喂3。理想喂价 = BTS市场价 * (1.02+0.02)^3=BTS市场价 *1.04^3=BTS市场价 *1.125,结论:市场价提高约12%,满意,也安全。
当溢价0.03时,加速因子喂3。理想喂价 = BTS市场价 * (1.03+0.02)^3=BTS市场价 *1.05^3=BTS市场价 *1.157,结论:市场价提高约15%,满意,也安全。

当溢价0.04时,加速因子喂3。理想喂价 = BTS市场价 * (1.04+0.02)^3=BTS市场价 *1.06^3=BTS市场价 *1.191,结论:市场价提高约19%,满意,安全。
     当溢价0.05时,加速因子喂3。理想喂价 = BTS市场价 * (1.05+0.02)^3=BTS市场价 *1.07^3=BTS市场价 *1.225,结论:市场价提高约22%,风险依然可控。

          我们可以看到,随着溢价参数的不断变大,市场价提高呈现线性下降趋缓模式。
实际上如果采用M=0.02,即宽松指标为2%,加速因子N=3,这样的公式后,溢价很难超过1%。因为当溢价达到1%时,喂价相对市场价提高了约9.27%,这个时候相当于MSSR为”0“了。也就是说爆仓单对内盘的价格不再有”压制“作用了,此时的内盘完全有动力和外盘保持价格”一致“。如果内外盘趋于价格持平,就是溢价消失的过程。
      结论:如果采用宽松指数M=0.02,即宽松目标2%,加速因子N=3,那么理论上溢价不会超过2%。


Exemplification of formula effect, loose target negative 2%, acceleration factor N=3
When the premium is negative 0.02 (discount 2%), the acceleration factor is 3. The ideal feeding price = BTS market price * 1-0.02+0.02) ^ 3 = BTS market price * 1 ^ 3 = BTS market price * 1. Conclusion: The target is in an ideal state without adjustment.
When the premium is negative 0.01 (discount 1%), the acceleration factor is 3. Ideal feeding price = BTS market price * 1-0.01+0.02) ^ 3 = BTS market price * 1.01 ^ 3 = BTS market price * 1.030301, conclusion: the market price increases by 3%, close to the ideal target.
When the premium is 0, the acceleration factor is 3. Ideal feeding price = BTS market price * 1 + 0.02) ^ 3 = BTS market price * 1.02 ^ 3 = BTS market price * 1.0612, conclusion: the market price increase of about 6%, very satisfactory and safe.

When the premium is 0.01, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.01 + 0.02) ^ 3 = BTS market price * 1.03 ^ 3 = BTS market price * 1.092727. Conclusion: The market price increases about 9.2%, satisfactory and safe.
When the premium is 0.02, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.02 + 0.02) ^ 3 = BTS market price * 1.04 ^ 3 = BTS market price * 1.125. Conclusion: The market price increases about 12%, satisfactory and safe.
When the premium is 0.03, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.03 + 0.02) ^ 3 = BTS market price * 1.05 ^ 3 = BTS market price * 1.157. Conclusion: The increase of market price is about 15%, satisfactory and safe.

When the premium is 0.04, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.04 + 0.02) ^ 3 = BTS market price * 1.06 ^ 3 = BTS market price * 1.191. Conclusion: The market price increases about 19%, satisfactory and safe.
When the premium is 0.05, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.05 + 0.02) ^ 3 = BTS market price * 1.07 ^ 3 = BTS market price * 1.225, conclusion: the market price increases about 22%, the risk is still controllable.

We can see that with the constant increase of the premium parameters, the market price increases show a linear decline slowing down model.
In fact, if M = 0.02, that is, the easing index is 2%, the accelerating factor N = 3, such a formula, the premium is very difficult to exceed 1%. Because when the premium reaches 1%, the feed price rises by about 9.27% relative to the market price, which is equivalent to the MSSR of "0". That is to say, the explosive warehouse receipt no longer has a "suppressive" effect on the price of the internal market, at this time the internal market is fully motivated and the external market to maintain a "consistent" price. If the internal and external prices tend to be flat, the premium will disappear.
Conclusion: If the easing index M = 0.02, that is, the easing target 2%, the accelerating factor N = 3, then the theoretical premium will not exceed 2%.

Offline sschiessl

Who is the judge of what the correct fiat price is?
How did you calculate the 9% from the 2%? Could you elaborate that please?
« Last Edit: September 03, 2018, 08:14:58 pm by sschiessl »