Author Topic: Review of OMO  (Read 1434 times)

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Offline bitcrab

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Review of OMO
« on: February 13, 2019, 07:36:14 am »
the open market operation fund relevant threads are here:

https://bitsharestalk.org/index.php?topic=26107.0
https://bitsharestalk.org/index.php?topic=26072.0

below is a simple table that shows the balance change of the 2 OMO accounts.







in the past 10 months, committee-cnytrader lost 6130332 bitCNY and 26206002 BTS.

committee-usdoperator lost 177300 bitUSD and 10258313 BTS.

from 2018/3/20 to 2018/8/8, committee-cnytrader bought 10M-25M BTS, at price 0.79 - 2.2 bitCNY.

from 2018/8/14 to 2019/1/19, committee-cnytrader selled 10M-20M BTS in margin call, at price 0.61 - 0.24 bitCNY.

from 2018/3/29 to 2018/10/30, committee-usdoperator bought about 15M BTS, at price 0.095 - 0.36 bitUSD.

from 2018/10/19 to 2019/10/21, committee-usdoperator selled about 12M BTS in margin call at price 0.0615 to 0.0509 bitUSD

at 2018/10/25 bitUSD was global settled, 3M BTS from committee-usdoperator was global settled at 0.0511bitUSD.

the data is rough as now it is not convenient to process the transaction data, hope https://bitsharescan.com can add the data export feature.
« Last Edit: February 13, 2019, 08:22:39 am by bitcrab »
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Offline xeroc

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Re: Review of OMO
« Reply #1 on: February 13, 2019, 09:17:08 am »
Well, at least there was a lesson learned ..
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Offline sschiessl

Re: Review of OMO
« Reply #2 on: February 13, 2019, 10:50:06 am »
staging.bitshares.org has a new account activity export!

The new UI worker is also live and up for voting :)

Offline bitcrab

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Re: Review of OMO
« Reply #3 on: February 14, 2019, 08:34:49 am »
I am considering to restart the OMO fund operation.

I believe that the market fee income should be used in supporting the smartcoin ecosystem. we learned lessons in the past 10 months, so I think we need to update some essential setting of the fund.

first, it will not get BTS through worker proposal, it will only get the market fee of smartcoins for operation.

here are 2 policies for the operation of the updated OMO fund.

Plan A:
1.BTS buying orders can be placed only when there is margin called orders stayed.
2.BTS selling orders can be placed only when the smartcoin has at least 0.5% discount.
3.smartcoin borrowing is not allowed.

Plan B:
1.BTS buying orders can be placed only when there is margin called orders stayed.
2.BTS selling orders can be placed only when the smartcoin has at least 0.5% discount.
3.smartcoin borrowing is allowed, but the margin call price of the debt position should always be lower than the global settlement price, anytime the margin called price is above global settlement price, all the available liquidity should be used to reduce the margin called price.

Plan A is conservative, it just buy and sell BTS, do not borrow.
Plan B is a little audacious.

maybe we can begin with Plan A, Plan B is for subsequent discussion.
« Last Edit: February 14, 2019, 10:54:48 am by bitcrab »

Offline finn-bts

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Re: Review of OMO
« Reply #4 on: February 14, 2019, 10:32:19 am »
I agree with the proposal and will vote for it

Offline Customminer

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Re: Review of OMO
« Reply #5 on: February 14, 2019, 05:20:28 pm »
How will this second OMO operation succeed where the last one failed? How do you plan on improving this time around?

Offline iamredbar

Re: Review of OMO
« Reply #6 on: February 15, 2019, 02:31:33 am »
I am with CM on this one. Losses are in the $100,000+ range. There needs to be significant improvements before I would vote for a second OMO.

Of the two options you described, Plan A is far more acceptable than Plan B.

Offline bitcrab

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Re: Review of OMO
« Reply #7 on: February 15, 2019, 06:02:30 am »
I am with CM on this one. Losses are in the $100,000+ range. There needs to be significant improvements before I would vote for a second OMO.

Of the two options you described, Plan A is far more acceptable than Plan B.

the fund lost so much because the big bear comes and the debt position was margin called.
in Plan A, there will be no borrowing and margin call will be avoided.

Offline clockwork

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Re: Review of OMO
« Reply #8 on: February 15, 2019, 06:46:10 am »
I am considering to restart the OMO fund operation.

I believe that the market fee income should be used in supporting the smartcoin ecosystem. we learned lessons in the past 10 months, so I think we need to update some essential setting of the fund.

first, it will not get BTS through worker proposal, it will only get the market fee of smartcoins for operation.

here are 2 policies for the operation of the updated OMO fund.

Plan A:
1.BTS buying orders can be placed only when there is margin called orders stayed.
2.BTS selling orders can be placed only when the smartcoin has at least 0.5% discount.
3.smartcoin borrowing is not allowed.

Plan B:
1.BTS buying orders can be placed only when there is margin called orders stayed.
2.BTS selling orders can be placed only when the smartcoin has at least 0.5% discount.
3.smartcoin borrowing is allowed, but the margin call price of the debt position should always be lower than the global settlement price, anytime the margin called price is above global settlement price, all the available liquidity should be used to reduce the margin called price.

Plan A is conservative, it just buy and sell BTS, do not borrow.
Plan B is a little audacious.

maybe we can begin with Plan A, Plan B is for subsequent discussion.

will be voting for Plan A.

No borrowing so no risk. No worker so daily budget available for workers.

Essentially it's just a market making op/liquidity provider based on those rules which is a great use of the market fee funds.

Offline xeroc

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Re: Review of OMO
« Reply #9 on: February 15, 2019, 07:14:02 am »
I agree with plan A.
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Offline ebit

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Re: Review of OMO
« Reply #10 on: February 15, 2019, 12:57:31 pm »
A

Offline Crypto Kong

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Re: Review of OMO
« Reply #11 on: February 17, 2019, 06:57:40 pm »
Under no circumstance should borrowing be allowed.

To keep things simple have you considered setting up a DEXBot staggered orders strategy and using fees to continually top up the balance. This way any gained fees will always stay as orders providing liquidity and also stabalise the market by resisting price change.

Using DEXBot would also remove any decision making from yourself (or any single person) and parameters could be agreed upon by the community.

DEXBot can be ran from a free server setup by the comitee and once parameters agreed all that needs to be done is the account topped up with fees.
« Last Edit: February 17, 2019, 07:13:40 pm by Crypto Kong »

Offline dh

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Re: Review of OMO
« Reply #12 on: February 17, 2019, 07:18:03 pm »
I have a better idea. Forget about OMO and turn off market fees on bitassets.

Offline Crypto Kong

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Re: Review of OMO
« Reply #13 on: February 17, 2019, 07:24:44 pm »
I have a better idea. Forget about OMO and turn off market fees on bitassets.

With the use of DEXBot staggered orders all market fees would be turned into liquidity providing orders which continually increase in size through the compounding of profits from the back and forth of price.

This is the simplest, safest, most efficient way forward for open market operations.

Offline clockwork

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Re: Review of OMO
« Reply #14 on: February 17, 2019, 07:56:09 pm »
Under no circumstance should borrowing be allowed.

To keep things simple have you considered setting up a DEXBot staggered orders strategy and using fees to continually top up the balance. This way any gained fees will always stay as orders providing liquidity and also stabalise the market by resisting price change.

Using DEXBot would also remove any decision making from yourself (or any single person) and parameters could be agreed upon by the community.

DEXBot can be ran from a free server setup by the comitee and once parameters agreed all that needs to be done is the account topped up with fees.

I like that...and a good showcase of the DEXbot