Author Topic: New BSIP:GS protection via core code  (Read 1888 times)

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Offline bitProfessor

Re: New BSIP:GS protection via core code
« Reply #45 on: July 30, 2019, 10:13:04 am »
It's time to act.

Offline Peryn

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Re: New BSIP:GS protection via core code
« Reply #46 on: July 31, 2019, 08:30:02 am »
And you are friends, no matter how you sit down, All the musicians are not fit.
I do not see the insurance market for debts in Bitshares.

Offline Sapiens

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Re: New BSIP:GS protection via core code
« Reply #47 on: August 05, 2019, 08:05:05 pm »
Hey guys, I wrote the following analysis regarding the issue. GS is only the manifestation of some more profound structural flaws in the Bitshares protocol. Given all that this community has build during the last years, I am fairly convinced that correcting this flaws will take us to the next level.

It's a pretty long read but, nonetheless worth the time.

Quote
Abstract


Eliminating the negative impact of Global Settlement events (GS) is certainly a priority for the Bitshares ecosystem. Currently, GS is widely regarded by the Bitshares community as a natural consequence of harsh market conditions, bad debtors and poor marketing strategy. Contrary to this perspective, I maintain here, that GS might be the consequence of some other more fundamental factors in the dynamics of the whole Bitshares protocol. I postulate that if these factors are modified, the probability of a GS or a similar event is drastically reduced almost immediately and may even tend to disappear in the long term. These factors include, but may not be limited to, two feedback loops currently present in the dynamics of workers’ financing and Margin calls. This work attempts to elucidate the architectural nature of the problem, out of which GS is only an inevitable result. Also, a new mechanism is proposed.   

Here is the link:

https://steemit.com/bitshares/@aguerrido/feedback-loops-and-analysis-of-bitshares-architecture-in-relation-to-smart-assets-sustainability
« Last Edit: August 05, 2019, 08:11:09 pm by Sapiens »

Offline abit

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Re: New BSIP:GS protection via core code
« Reply #48 on: August 06, 2019, 10:31:48 pm »
Can I quote your messages in Telegram group to this post? E.G.

* "Suppose that A borrows BitUSD ..."

* "On a similar note, if a wallet ..."

I'm glad that you noticed the issues.


UPDATE:
Here are the messages:

"Suppose that A borrows BitUSD from the DEX and uses it to buy BitCNY from B. An additional player, C, decides to sell a bunch of his BTS to B in exchange for that BitUSD and hold it to avoid volatility. C's sell brings BTS price down and makes A fall into a margin call. Suppose also that there are no more players in this market. It seems to me that, even if A wanted, he could not close his position because all the existing BitUSD is in the power of C, which is decided to hold it. So, in order to prevent the call, the only alternative for A is to sell his CNY for BTS and increase his collateral, being left with less available money than what he started with, crippled, unknowingly, by C. A has himself labeled as a bad debtor without any possible solution. "

"On a similar note, if a wallet with lot's of BitUSD becomes inaccessible due to lost keys or his owner having a heart attack, because that BitUSD is backed by someone's collateral, someone's debt becomes impossible to pay, and his collateral impossible to recover. "
« Last Edit: August 10, 2019, 04:19:32 pm by abit »
BTS account: abit
BTS committee member: abit
BTS witness: in.abit

Offline Sapiens

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Re: New BSIP:GS protection via core code
« Reply #49 on: August 09, 2019, 11:57:12 pm »

I just saw this!

Sure man, this is al open source! ;D ;D ;D

BTW, I had to check about 10 reCAPCHATs to be able to post this. Quite suspicious.