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price feeding review
bitcrab:
--- Quote from: binggo on April 11, 2019, 09:09:21 am ---Pdex: DEX price that has been modified by bitCNY premium/discount factor
Pcex: price get from CEX
if Pdex>1.2*Pcex: ## to cope with unusual exreme issues.
Pfeed = Pcex
otherwise:
Pfeed = max(Pcex, Pdex)
1.2 or 1.02？
or 1.05？
--- End quote ---
1.2, " Pdex>1.2*Pcex" is to define unusual conditions, however, to smooth the price change, maybe this logic can be updated to:
if Pdex>1.2*Pcex: ## to cope with unusual exreme issues.
Pfeed = (Pcex+Pdex)/2
binggo:
Pdex: DEX price that has been modified by bitCNY premium/discount factor
Pcex: price get from CEX
if Pdex>1.2*Pcex: ## to cope with unusual exreme issues.
Pfeed = Pcex
otherwise:
Pfeed = max(Pcex, Pdex)
1.2 or 1.02？
or 1.05？
bitcrab:
recently, bitCNY price feed is always 1%-2%+ lower than DEX price, at the same time , bitCNY still has an about 0.3% premium.
as bitCNY has a 2% force settlement offset, this provide chances for speculators to exploit debt position owners, this is not reasonable.
and at the same time, we heard many traders complained that the witnesses doing bad in price feeding, and this unconvinced them that BTS worth trust.
I feel we need to pay more attention on this, and need to review how to guarantee the price feed well enough.
my first consideration is that, we need to give the DEX price more weight, because:
1. price feed are serving DEX margin trading, naturally DEX price should have most weight.
2.DEX BTS/bitCNY pair has the biggest volume without any faking.
3.BTS/bitCNY is the closest price we can get, and is most direct, prices from other CEXs need always convert from USDT/BTC, many distortion there.
but at the same time, we cannot depend only on DEX price, as there's possibility that whales borrowed and manipulate market.
I suggest such an CNY price feeding algorithm for reference:
--- Code: ---Pdex: DEX price that has been modified by bitCNY premium/discount factor
Pcex: price get from CEX
if Pdex>1.2*Pcex: ## to cope with unusual exreme issues.
Pfeed = Pcex
otherwise:
Pfeed = max(Pcex, Pdex)
--- End code ---
clockwork:
--- Quote from: clockwork on November 23, 2018, 11:04:41 am ---
--- Quote from: xeroc on November 22, 2018, 12:17:36 pm ---I agree with @clockwork.
It seems to be an art to find a balance. Certainly we've learned alot from
BSIP42 even though some people in the community declare it a failure
already.
Maybe we can learn the lessons in such a way that it tells us how to use
a dynamic MCR once we have the backend fixed.
--- End quote ---
Sure...
My suggestion for dynamic adjustment once the backend is fixed is the following:
Set a range and centerpoint for MSSR..
Obviously, MSSR can't go below 100% so if we keep 110 as the "centerpoint", we allow witnesses to manipulate MSSR up to 120%.
This is our first, go to weapon when fighting a premium or discount.
If premium, we reduce MSSR down to 100 to reduce sell pressure and allow DEX price to climb and close premium
If discount, we increase up to 120 to decrease bitUSD supply and close discount.
If we reach either of the limits and STILL in premium or discount, then and ONLY then do we start adjusting the MCR.
Again, let's keep something like 175 as a centerpoint and a range within which we can increase or decrease (say 150-200).
This means that if you keep your collateral above the max end of the range , you know you're safe making the adjustments predictable.
If we go beyond those ranges again, just leave it at those maxiumums or minimums. Behaviour will be the same as we used to have when it comes to premium or discount (sans adjustment) but will happen much less often and within a smaller range.
When "returning" from those maximums or minimums, we do it reversely... bring MCR back to centerpoint and then adjust MSSR afterwards (if still needed)
--- End quote ---
abit:
Since BSIP42 is voted out, I'm now feeding market price for CNY, with a floor to avoid global settlement.
Weighting algorithm didn't change.
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