Main > General Discussion
price feeding review
clockwork:
--- Quote from: abit on November 28, 2018, 11:01:55 am ---
--- Quote from: clockwork on November 28, 2018, 08:32:01 am ---Increasing MSSR will lower the margin call limit and eat away MORE of the bitUSD supply thus fighting discount without messing with MCR.
Similarly, decreasing MSSR will pull those orders away from market price to an extent thus fighting premium.
I think it should be our first adjustment before messing with MCR.
--- End quote ---
Please keep in mind that if bitCNY is trading around par value, a big MSSR is only possible to pushes it away, especially when feed price is not adjusted.
--- End quote ---
if it's trading near par , then hardly any premium/discount exists hence no reason to adjust MSSR.
The whole concept is about it being dynamic to tighten the peg.
Then again BSIP42 is voted out so all this is irrelevant
abit:
--- Quote from: clockwork on November 28, 2018, 08:32:01 am ---Increasing MSSR will lower the margin call limit and eat away MORE of the bitUSD supply thus fighting discount without messing with MCR.
Similarly, decreasing MSSR will pull those orders away from market price to an extent thus fighting premium.
I think it should be our first adjustment before messing with MCR.
--- End quote ---
Please keep in mind that if bitCNY is trading around par value, a big MSSR is only possible to pushes it away, especially when feed price is not adjusted.
clockwork:
Increasing MSSR will lower the margin call limit and eat away MORE of the bitUSD supply thus fighting discount without messing with MCR.
Similarly, decreasing MSSR will pull those orders away from market price to an extent thus fighting premium.
I think it should be our first adjustment before messing with MCR.
bitcrab:
--- 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 increase 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 ---
in most of the cases, in bitCNY market, there is little difference between MSSR=120% and MSSR=102%, as most of the margin call orders are filled at the price which is very close to market price, I don't think that adjusting MSSR will give impact to premium/discount.
nutela:
--- Quote from: bitcrab on November 22, 2018, 11:20:23 am ---
BSIP42 narrowed the market space of BTS, in DEX, while trading pushed up the price in bitCNY, the feed price always go down as responding according to the negative feedback logic, BTS price in DEX have to follow BTS price in CEX, these discouraged more money to come.
--- End quote ---
"BTS price in DEX have to follow BTS price in CEX" Not sure what you are trying to say, BTS price on CEX would be logically more expensive since the CEX needs to have a price premium to exist.
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