Author Topic: Is it a good idea to lower MSSR of bitCNY from 1.1 to 1.05 or even lower?  (Read 3921 times)

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Online bitcrab

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recently in China community someone suggest to lower MSSR of bitCNY, I'd like to have a public discuss and opinion survey on this topic.

thanks to the new feature target CR and the good market depth, recently most of the time the bitCNY margin called orders are eaten instantly at the price close to market price, when the price fall down to very low point, some margin called order are stay there for long time without being completely, and normally at this time the bitCNY premium is more than 10%.

when margin called orders stay there, then the sell order price will keep falling down when the feed price come down, shorters always can sell to make the feed price even lower and the buy back from DEX, this process make the price even lower.

so is it possible to lesson the positive feedback by lower the MSSR?

I think it's possible, as lower MSSR can reduce the profit expectation of shorting.

more ideas and opinions are welcome to clarify this.



« Last Edit: August 15, 2018, 06:02:27 am by bitcrab »

Offline paliboy

I think that this one is much safer experiment than the one influencing the CNY feed price. Definitely don't implement both at the same time, otherwise you cannot judge the effect of one or the other. Give people long enough time (counting in months) to adjust their behavior.

Offline bts-qs

recently in China community someone suggest to lower MSSR of bitCNY, I'd like to have a public discuss and opinion survey on this topic.

thanks to the new feature target CR and the good market depth, recently most of the time the bitCNY margin called orders are eaten instantly at the price close to market price, when the price fall down to very low point, some margin called order are stay there for long time without being completely, and normally at this time the bitCNY premium is more than 10%.

when margin called orders stay there, then the sell order price will keep falling down when the feed price come down, shorters always can sell to make the feed price even lower and the buy back from DEX, this process make the price even lower.

so is it possible to lesson the positive feedback by lower the MSSR?

I think it's possible, as lower MSSR can reduce the profit expectation of shorting.

more ideas and opinions are welcome to clarify this.

I think this is a good idea. This has reduced the disastrous effect of the chain explosion caused by shorting. In fact, setting 1.05 may be more appropriate. Of course, this needs to be tested by practice.

Offline Customminer

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MSSR punishes shorters upon force settlement yeah? Why not increase it for failing to collateralize their shorts?

Offline abit

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Why not 1.001? Why not 1.5?

MSSR punishes shorters upon force settlement yeah? Why not increase it for failing to collateralize their shorts?
MSSR has nothing to do with force settlement.
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Offline Thul3

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A 1.1 MSSR isn't able to arbitrage all called margins on DEX.Would you lower it to 5% it would mean that on bigger falls like now the external funds which will come from CEX will be even smaller buy off margin calls.

The only real solution would be getting more users to DEX.

Offline JonnyB

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FFS bitcrab, I thought BitShares was supposed to be decentralised.

You adjust all the parameters to suit your whale positions.

you run the open market operations (a major conflict of interest.)

you got the committee to change force settlement on BitCNY to 5%(supposedly temporarily) when all other bitassets are 1%

now you want to change MSSR for your own ends.

lets just rename it Crabshares
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Offline FractalNode

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I agree with this proposal, it can help balance the bitCNY price closer to 1: 1 with CNY, but please set up settlement offset back to 1%

Offline Brekyrself

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All of these potential changes should be considered for all bit assets.  No reason for CYN to be different, this is more confusing for users.

Offline Thul3

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Quote
I agree with this proposal, it can help balance the bitCNY price closer to 1: 1 with CNY, but please set up settlement offset back to 1%

Could you explain how ?


Quote
All of these potential changes should be considered for all bit assets.  No reason for CYN to be different, this is more confusing for users.

BitUSD isn't able to buy out the margin calls on the market currently as they are still there and you want to lower the MSSR for it so they will be even bigger ?


Online bitcrab

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FFS bitcrab, I thought BitShares was supposed to be decentralised.

You adjust all the parameters to suit your whale positions.

you run the open market operations (a major conflict of interest.)

you got the committee to change force settlement on BitCNY to 5%(supposedly temporarily) when all other bitassets are 1%

now you want to change MSSR for your own ends.

lets just rename it Crabshares

you can also suggest.

decentralized does not mean no one can try to push some change. and now I am just collecting opinion on this topic.

Online bitcrab

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All of these potential changes should be considered for all bit assets.  No reason for CYN to be different, this is more confusing for users.

bitCNY has a much better market depth than bitUSD and will face much lower risk to implement this than bitUSD does, that's why I suggest to try this in bitCNY first.

Online bitcrab

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Why not 1.001? Why not 1.5?

let me try to explain why.

as shown below, when feed price fall down and reach margin call price, the calling process begin. debt positions are margin called and the collateral will be sold at feed price/MSSR, this is the process to release risks of not-enough-collateral.

MSSR is an important parameter here, it determine the gap between margin call price and the margin call order sell price, and will impact the behavior of different roles.

the higher the MSSR, the bigger the gap, the easier the margin call order will be eaten, but at the same time, the higher profit of shorting and the bigger the shorting incentive.

the lower the MSSR, the smaller the gap, more difficult the margin call order will be eaten, however at the same time, the lower the profit of shorting and the smaller the shorting incentive.

so what a MSSR is appropriate depend on the market status.

after 719 fork provide the target CR new feature, we can see in bitCNY market most of the time the margin called orders are filled instantly at the price close to market price, only when the market price is too low and bitCNY has a premium of more than 10%, there will be margin called orders stay there as sell pressure.



in my view, the depth of bitCNY market is well enough that no need to set a too high MSSR, it's possible to lower MSSR to 1.05 to lower the sell pressure as well as shorting incentive.

but I don't think it's a good idea to do the same to bitUSD now, as the market depth is not good enough yet.

I am not sure whether one day we can set MSSR to 1.001. but I think it is not feasible now, let's lower the shorting incentive step by step.


 

 
 
« Last Edit: August 16, 2018, 07:22:04 am by bitcrab »

Offline gghi

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              事实上,当我们修正了喂价之后,这个问题也就没有了。因为新的喂价=目前的喂价+充值费率,



     As a matter of fact, when we corrected the price, the problem was gone. Because the new feed price = current price plus recharge rate.