Author Topic: When to expect the bitUSD revival?  (Read 341 times)

0 Members and 1 Guest are viewing this topic.

Offline NeoReel

  • Jr. Member
  • **
  • Posts: 46
  • Entrepreneur
    • View Profile
    • NeoReel
  • BitShares: neoreel-1
When to expect the bitUSD revival?
« on: December 06, 2018, 02:13:40 pm »
Hello,

So... bitUSD/BTS is nearly 20% over feed price because nobody is willing to trade. At first, that was OK, waiting patiently for it to fall to a reasonable price to buy BTS or BTC again, but now I'm starting to realize that I'm probably screwed with bitUSD, for which I might not be able to get out without loosing quite a %...
I read everywhere that bitUSD needs to be revived and wait for the margin trading to open again. So I have the following questions:

-How/when will bitUSD be revived? What does it take? Just the trust of people who lost a lot because of the GS?
-If we are below the GS price, will it be revived only when the price goes back up above that same GS price or can the new GS price be lowered?
-Will it be revived only when the margin trading opens up again? What are the conditions for that?
-Will I get back my worth of bitUSD only when the price will go back above GS price? Am I understanding this right? Because if so and the price keeps falling, bitUSD holders are screwed, no?
-Also, what does it mean when a bitasset stops being pegged?

Thanks for your time!

Cheers,
« Last Edit: December 06, 2018, 02:41:19 pm by NeoReel »
President - NeoReel.com
CTO- MoClip.com
CEO- Relinked.com

Online clockwork

  • Committee member
  • Full Member
  • *
  • Posts: 188
    • View Profile
  • BitShares: clockwork
Re: When to expect the bitUSD revival?
« Reply #1 on: December 06, 2018, 02:48:32 pm »
Hello,

So... bitUSD/BTS is nearly 20% over feed price because nobody is willing to trade. At first, that was OK, waiting patiently for it to fall to a reasonable price to buy BTS or BTC again, but now I'm starting to realize that I'm probably screwed with bitUSD, for which I might not be able to get out without loosing quite a %...
I read everywhere that bitUSD needs to be revived and wait for the margin trading to open again. So I have the following questions:

-How/when will bitUSD be revived? What does it take? Just the trust of people who lost a lot because of the GS?
-If we are below the GS price, will it be revived only when the price goes back up above that same GS price or can the new GS price be lowered?
-Will it be revived only when the margin trading opens up again? What are the conditions for that?
-Will I get back my worth of bitUSD only when the price will go back above GS price? Am I understanding this right? Because if so and the price keeps falling, bitUSD holders are screwed, no?
-Also, what does it mean when a bitasset stops being pegged?

Thanks for your time!

Cheers,

https://steemit.com/bitshares/@haruka/detailed-mechanism-of-global-settlement-black-swan-and-reviving-of-bitassets

Offline biophil

  • Hero Member
  • *****
  • Posts: 841
  • Incentives run the world
    • View Profile
    • Sign up for a Bitshares account!
  • BitShares: zebulon
Re: When to expect the bitUSD revival?
« Reply #2 on: December 06, 2018, 02:57:21 pm »
Hi Neo, I've been absent from bitshares for quite some time now, and just came back to see what was going on with bitUSD. For some time now, I've been concerned that there are systemic problems that would eventually lead to GS for some bitasset, and I'm very sad to see that the community was not able to correct these problems before a GS happened. I'm going to be looking in to exactly why this happened, and hopefully this kind of thing can be prevented in the future. For now, you'll have to decide how confident you are that bitUSD will recover. I summarize the "global settle" operation here: https://bitsharestalk.org/index.php?topic=24322.msg307262#msg307262 In essence, when GS happens, the majority of the asset's collateral pool is thrown away. What little collateral is left after GS is not enough to effectively back the asset, so it goes into sort of a shutdown mode.

I think (people more involved in day-to-day can confirm) that BitUSD needs several million dollars to be revived. From what I recall, it will be revived when the value of the collateral pool rises to a certain threshold, either because some gracious whale comes and commits that collateral to the pool, or because the price of BTS rises enough so that the existing collateral is worth enough to back the asset again.

Offline pc

  • Hero Member
  • *****
  • Posts: 1404
    • View Profile
    • Bitcoin - Perspektive oder Risiko?
  • BitShares: cyrano
Re: When to expect the bitUSD revival?
« Reply #3 on: December 06, 2018, 03:02:03 pm »
-How/when will bitUSD be revived? What does it take? Just the trust of people who lost a lot because of the GS?

It will be revived if either of these happen:

* supply drops to 0 (very unlikely)
* BTS/USD price rises higher than settlement fund/supply * MCR
* a number of people offer to put additional collateral into the pool, in exchange for a share of both debt and settlement fund, together they cover the full debt, and each resulting margin position has a collateral ratio higher than MCR

-If we are below the GS price, will it be revived only when the price goes back u above that same GS price or can the new GS price be lowered?

Technically, the BTS/USD price has to rise high enough. If witnesses choose to provide a fake feed price (see BSIP-42) this can happen before the real price goes up.

-Will it be revived only when the margin trading opens up again? What are the conditions for that?

Margin trading will open up when bitUSD is revived.

-Will I get back my worth of bitUSD only when the price will go back above GS price? Am I understanding this right? Because if so and the price keeps falling, bitUSD holders are screwed, no?

Yes.

-Also, what does it mean when a bitasset stops being pegged?

1 bitUSD is no longer worth 1 USD. Instead it is worth 19.55 BTS. If you're lucky you can sell it for more on the market. If you're lucky you can buy it for less from the market and settle for a profit.
Bitcoin - Perspektive oder Risiko? ISBN 978-3-8442-6568-2 http://bitcoin.quisquis.de

Offline NeoReel

  • Jr. Member
  • **
  • Posts: 46
  • Entrepreneur
    • View Profile
    • NeoReel
  • BitShares: neoreel-1
Re: When to expect the bitUSD revival?
« Reply #4 on: December 06, 2018, 04:15:21 pm »
Thanks a lot for your well written answer.
Clockwork, I've seen that link already, and for the unsavvy, this is for the most part, gibberish.
Biophil, thanks for your insight, looking forward to see it revived.
Pc, since I've never played with margin trading, I thought I was doing the right thing by holding at the time of the GS. Oh well. Live and learn.

Cheers,
President - NeoReel.com
CTO- MoClip.com
CEO- Relinked.com

Offline Brekyrself

  • Hero Member
  • *****
  • Posts: 500
    • View Profile
Re: When to expect the bitUSD revival?
« Reply #5 on: December 08, 2018, 04:26:32 am »
Option 3 is available in the GUI now for people to start bidding.  If bitUSD can be revived quickly, this will show how strong BitShares and its community is.

Offline Gleepower

Re: When to expect the bitUSD revival?
« Reply #6 on: December 08, 2018, 11:55:02 am »
Smartcoins are an inherently a risky asset since they are backed by cryptocurrencies which tend to be extremely volatile compared to the currency of the smartcoin. This is not like a bank which has assets which correlate much more strongly with its liabilities. As such, you should be aware that smartcoins are very risky derivatives, which you should use with caution. I'm sorry for your loss, since I think it is unlikely you will get your bitusd 1-1 with a dollar.

Offline NeoReel

  • Jr. Member
  • **
  • Posts: 46
  • Entrepreneur
    • View Profile
    • NeoReel
  • BitShares: neoreel-1
Re: When to expect the bitUSD revival?
« Reply #7 on: December 09, 2018, 04:25:26 am »
Thank you for your replies.
I (now) understand that the bitUSD is not as stable as I believed. You know, reading on when I first started to be interested in Bitshares (and Protoshares long ago), I came to believe that bitUSD was a strong thing that would never become some sort of tether coin... Wording like the ones found here : https://steemit.com/bitshares/@xeroc/what-makes-the-bitusd-than-nubits always made me believe it could not break. Obviously, I would have never suspected Bitshares to go below 0.10$USD back then, and since I had never been interested by the margin trading, I never knew about the GS price. I thought this would not affect me much. Now I know. I didn't loose much, but then again I could not benefit from the plunge from .05 to 0.3, for which I was too well prepared.
Now looking at bitCNY, with a GS at 0.261429, I'm getting better to understand what could be the outcome of a black swan... CNY has been stragely holding at 0.261430... (Feed manipulation?) When it moved 0.264, where it stayed fixed for a bit, I panicked a bit seeing it plummet straight to 0.261430, 0.00001% away from GS... Hey, now its going back up... That was a good f*** up for me, but nothing to panick about.

Thanks again for your time!

Cheers
President - NeoReel.com
CTO- MoClip.com
CEO- Relinked.com