Author Topic: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions  (Read 5498 times)

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Offline fav

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looks like SPRING is going to start soon, can't wait to see how it goes
► How-to Buy BitShares: https://goo.gl/i9j2YZ

Offline armin

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What's the management fee (in %)?

Will SPRING be freely tradeable on the market 24/7/365?
« Last Edit: July 20, 2018, 08:57:13 pm by armin »

Offline ripplexiaoshan

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You only buyback without burn? Does that mean you'll sell the bought back assets at a later stage?

I am guessing at end of quarter/redemption time there will be a buy wall for buy back placed feeding a sell wall just above for new investors.

Jademont, care to confirm?

Exactly!
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Offline ripplexiaoshan

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What's the management fee (in %)?

Will SPRING be freely tradeable on the market 24/7/365?

As it was described in the main post, 0.2% is the management fee.
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Offline ripplexiaoshan

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To note that the trader's account is spring-trader, which is managed by professional trader from Ivy Capital.
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Online bitcrab

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Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #20 on: August 26, 2018, 05:50:12 pm »
SPRING management team is considering to vote BSIP42 worker. https://github.com/bitshares/bsips/blob/master/bsip-0042.md

BSIP42 is suggested by abit, it introduce the new idea of "negative feedback feed price" to get more accurate pegging of smartcoin, we believe this will help the whole ecosystem, and also SPRING to grow.

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




Offline gghi

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Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #21 on: August 27, 2018, 12:30:00 am »
         support!  very  good  idea.

Offline xuzhihao168

Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #22 on: August 27, 2018, 02:19:24 am »
Support!

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Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #23 on: August 29, 2018, 07:37:08 am »
So the buyback of SPRING will be at the same price in BTS terms, but you are expecting BTS to rise compared to Yuan (and overall)? At least if the fund is successful.

Yes, we hope BTS ecosystem can grow, and also the BTS market cap.

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Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #24 on: September 03, 2018, 03:41:01 pm »
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.

Online sschiessl

Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #25 on: September 03, 2018, 08:09:56 pm »
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 »

Offline gghi

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Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #26 on: September 04, 2018, 12:47:08 am »
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 gghi

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Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #27 on: September 04, 2018, 12:50:18 am »
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

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Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #28 on: September 04, 2018, 05:54:28 am »
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.

Online sschiessl

Re: SPRING BTS Fund Management Rules and Spring One Purchasing Instructions
« Reply #29 on: September 04, 2018, 08:57:30 am »
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 »