Author Topic: [Poll] BSIP59:Reduce MCR of bitCNY to 1.6  (Read 9683 times)

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Offline binggo

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i don't think so, now the feed pirce is lower than CEX at regular price.
the try to add gateway fees to the feedprice to make margin called offers more expensiv than BTS offered on CEX at regular price

Offline Thul3

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The loose of peg comes from low liquidity and not by reducing MCR from 1.75 to 1.6.

https://www.dexbot.info/2019/05/21/understanding-trading-activity-and-potential-causes-of-bitasset-settlement/


If you reduce MCR from 1.75 to 1.6 it automaticly means you get now faster to MCR 1 in a bigger down movement.
Normaly it would be no problem since margin calls would get filled and the MCR pushed back to the minimal required MCR.

However with the current changes like MSSR 1.01 and the try to add gateway fees to the feedprice to make margin called offers more expensiv than BTS offered on CEX at regular price means that there will be no more margin be bought in a bigger down movement and the bad debt run through 1.6 to 1 without being pushed back by filled margin calls.


The risks of totaly losing the stable coins peg because of uncollateralized debt has been significantly increased.

Offline bench

Be part of the change and vote for the bitshares-vision proxy!

Offline Thul3

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This is ridiculous, we should be encouraging people to take out better collateralised positions, not allow them to take out less collateralised positions.

why not? MAKER DAI had MCR=1.5.

Rule is rule, want to change? give a new rule.
We need to make the platform more attractive for people to borrow more bitAssets.
Reducing MCR from 1.75 to 1.6 was the right step.


Who is going to use a stablecoin which will lose its pegg in a mid seize down movement ?

Lowering the MCR is fine but lowering the MCR and working that no margin will be eaten anymore will only decrease the reputation of bitassets as stable coin.

Offline bench

This is ridiculous, we should be encouraging people to take out better collateralised positions, not allow them to take out less collateralised positions.

why not? MAKER DAI had MCR=1.5.

Rule is rule, want to change? give a new rule.
We need to make the platform more attractive for people to borrow more bitAssets.
Reducing MCR from 1.75 to 1.6 was the right step.
Be part of the change and vote for the bitshares-vision proxy!

Offline binggo

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This is ridiculous, we should be encouraging people to take out better collateralised positions, not allow them to take out less collateralised positions.

why not? MAKER DAI had MCR=1.5.

Rule is rule, want to change? give a new rule.

Offline Crypto Kong

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This is ridiculous, we should be encouraging people to take out better collateralised positions, not allow them to take out less collateralised positions.

Offline BunkerChainLabs-DataSecurityNode

At what point would we be able to recognize the results of this change being effective?

Overall I support this, but would like to have some thoughts around monitoring and analysis of the change to determine if/when it has the desired outcome and if it will need further adjusting. Going down is going to be a lot easier than going up, just to forewarn.

Jonathan
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Offline clockwork

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I share Thul's concern about a lower low but agree with Xerox's reasoning.

Main thing is making sure that margins are sold as we drop so I am keen to see some ideas around making sure that happens implemented.

A lower mcr should drop premiums, align Dex and cex price and thus ensure margins are being bought...however I am concerned about our reaction time via bsip if we need to raise it again

Offline binggo

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When do u think the right time to reduce MCR?

In arround 2 months.There are many indicators we will see a last final bigger downtrend (third bottom) before getting the real uptrend.
Reduce of MCR should only happen in real uptrend to avoid getting negative effects in a downtrend.
Agree,But the market is hard to predict and the right time is hard to grasp.

The settlement, we can use it to let the market to control themself.

The settlement offset, the settlement delay, the TARGET COLLATERAL RATIO to control the MCR,even set the MCR=1.5 or 1.35.


Offline bitProfessor

When do u think the right time to reduce MCR?

In arround 2 months.There are many indicators we will see a last final bigger downtrend (third bottom) before getting the real uptrend.
Reduce of MCR should only happen in real uptrend to avoid getting negative effects in a downtrend.
Agree,But the market is hard to predict and the right time is hard to grasp.

Offline matle85

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I share Thul's concern about a lower low but agree with Xerox's reasoning.

Main thing is making sure that margins are sold as we drop so I am keen to see some ideas around making sure that happens implemented.


Offline xeroc

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In arround 2 months.There are many indicators we will see a last final bigger downtrend (third bottom) before getting the real uptrend.
Reduce of MCR should only happen in real uptrend to avoid getting negative effects in a downtrend.
Good reasoning. We should be careful, reputation of bitCNY is good lately and IMHO, a premium is much more acceptable than a GS.
However, Comparing bitCNY with other "stablecoin" projects, the biggest collateral requirement that you can find outside of bitshares is 1.5x from DAI - (while here, 1.6x is proposed).
Obviously, most "stablecoins" only have 1x (being backed by the underlying asset itself).

I do know that DAI is also struggling, but they don't have the instruments that we have (but others). Imho, we should allow an MCR to go as low as 1.6
But I would grant permission to witnesses to pick between 1.6 and 1.75 according to premiums instead of fixing it.

For that reason, I do support reduction of MCR to 1.6.

Hope people can understand my reasoning.

Offline Thul3

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When do u think the right time to reduce MCR?

In arround 2 months.There are many indicators we will see a last final bigger downtrend (third bottom) before getting the real uptrend.
Reduce of MCR should only happen in real uptrend to avoid getting negative effects in a downtrend.
« Last Edit: April 07, 2019, 08:37:13 pm by Thul3 »

Offline bitProfessor

When do u think the right time to reduce MCR?