Bitshares: Margin Trading and Swap contracts on the DEX discussion

[George_Bitspark]

Looking for feedback from the community so we can get this moving- particularly core. Thanks for all the support so far for this proposal! https://github.com/bitshares/bsips/issues/170

@abit previously you didnt want to comment and just said 'make it a BSIP' well now there is a BSIP draft, what is your comments? Thanks

[Peryn]

Finally, I see an understanding here that the idea of borrowing and bonds is needed like air

[fav]

awesome and needed! bring some DeFi to BTS

[liondani]

+5+5+5

[matle85]

Great!

[abit]

Draft BSIP:
https://github.com/bitshares/bsips/issues/170
https://github.com/bitshares/bsips/blob/wip-lending-for-margin-trading-a/bsip-lending-for-margin-trading.md

[George_Bitspark]

Have discussed with team at OpenLedger to see if we can bring this to fruition in a BSIP.

[jindiaoke]

I just wrote some initial ideas on how we can add Margin Trading via P2P swap contracts and an active lending market to the DEX which in my is the biggest single change we can do to add multiples more liquidity, volume and price pressure on BTS. Feedback welcome

Check it here

This can attract a lot of new users. Can be developed as a key direction. My advice is to borrow money from btc.

[yury]

I just wrote some initial ideas on how we can add Margin Trading via P2P swap contracts and an active lending market to the DEX which in my is the biggest single change we can do to add multiples more liquidity, volume and price pressure on BTS. Feedback welcome

Check it here

Good idea, but lack of specifications.

If you really want this to be implemented in BitShares, please create a BSIP document via pull request here: https://github.com/bitshares/bsips/pulls

By the way, https://github.com/bitshares/bsips/issues/6 is related.

Thanks, at this stage its not meant to be a BSIP- first we need to facilitate community feedback on what would be required, then can look at creating a formal BSIP as it indeed requires more specification.

Definitely a good idea, George! Are you going to BSIP it?

[R]

RE: P2P lending, if you were to create a smartcoin backed by [BTS|bitAsset] with an internal [BTS|bitasset] price reference then apply a sine wave oscillation to the price feed, then both the shorter and holder would have confidence in the limited volatility range associated with the debt and global settlement risk would be disassociated from external price movements, allowing both parties to focus solely on the terms of oscillation.

[Thom]

My only concern would be if we get tangled in something that complicates the DEX's status as they try to say we are acting as a money lender and are therefore subject to X, y and z laws.

I am similarly concerned. "They" will use any excuse whether legit or not to shut crypto down. This doesn't fail the Howie test tho, as it is peer to peer lending, proceeds of that are for individuals, not a collective.

[matle85]

This sounds like a great idea that could bring a lot of traders to the DEX and adds a lot of value to it as a trading platform, I like the idea of being to lock up any asset and think it will improve liquidity.

If I think BTS is cheap at the minute but don't necessarily want to sell my remaining BTC to buy more, locking it up to borrow might be a sensible middle route.

Similarly guaranteed interest returns should encourage more people to be making bitUSD/bitCNY, especially if there is demand and interest rates are attractive. I think it would bring more fiat in as well - bank rates are terrible at the minute, bitUSD with interest paid via a lending facility has to be a better option.

My only concern would be if we get tangled in something that complicates the DEX's status as they try to say we are acting as a money lender and are therefore subject to X, y and z laws.

[Thom]

The most difficult part is how to guarantee the lenders can always get back their assets before a black swan event, with good enough performance. All external markets have external tools E.G. insurance to try to achieve this. BM has proposed a similar idea long before (read: bond market) but abandoned IMHO due to performance issues and other limitations.

why need to guarantee this?

Perhaps it's not required, but surely you see how having it provides an added measure of safety to the lender, which should stimulate even more lending.

[bitcrab]

The most difficult part is how to guarantee the lenders can always get back their assets before a black swan event, with good enough performance. All external markets have external tools E.G. insurance to try to achieve this. BM has proposed a similar idea long before (read: bond market) but abandoned IMHO due to performance issues and other limitations.

why need to guarantee this?

[abit]

Before a specification is out, I'm not going to spend much time on this discussion. New ideas come out every day, but few are practicable.

The most difficult part is how to guarantee the lenders can always get back their assets before a black swan event, with good enough performance. All external markets have external tools E.G. insurance to try to achieve this. BM has proposed a similar idea long before (read: bond market) but abandoned IMHO due to performance issues and other limitations.