Author Topic: Thoughts on new OMO fund  (Read 1120 times)

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Offline Thul3

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Thoughts on new OMO fund
« on: July 24, 2019, 10:49:04 pm »
I'm planning for a longer time to open a worker for a new OMO fund which would be replacing the old one.
The timing seems to be perfect to open a new OMO fund to support both liquidity and price of Bitshares.
The new OMO Fund should have imo 4 accounts which would be splitted into  USD,CNY,EUR,USDT .
Focus should be on bitUSD and bitCNY with bigger focus on bitUSD.
The fourth account for USDT should be funded once the big bad debt from bitUSD disappears.
USDT should be offered 1:1 against bitUSD with a (0.2% growth margin).
By creating a liquid USDT/BitUSD market on DEX we hopefully will support bitshares prices on CEX'es via arbitrage with the strong inhouse demand we have here on DEX(it should also close the current big spreads on other major assets).Price manipulation on CEX would be more difficult and any downtrend on CEX could be decreased with the help of the liquidity on DEX.
BTS prices of 3% above the DEX feed prices (CEX) are happening very often which would support prices on CEX when a liquid bitUSD/USDT market on DEX exist.

 

The OMO funds should be controlled by 5-6 people where 3/5 authorisation is needed.
Personly i would love to see
bitcrab
Schiessl
Clockwork
Openledger
abit
blockchainlabs

Current unclaimed market fee's should be used to buy BTS mainly from bitshares foundation (over 27 million BTS and increasing) to decrease its sell pressure and to obtain a bigger stake without influencing the bitshares price on DEX to much .


There should be strict rules about maintaining CR's and at which timeframes orders from these accounts can be executed.
Buy or sell orders should be only allowed once a week (if there is no emergency) which static day should be announced so traders can prepare for it.
USDT/bitUSD pair can be placed daily.
Buying margin calls with the OMO Fund will not be allowed till DEX will have enough liquidity which will be decided by the community.


Any thoughts on this ?




Offline bitcrab

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Re: Thoughts on new OMO fund
« Reply #1 on: July 25, 2019, 03:35:20 am »
A proposal is there to burn 1M BTS. and at the same time we get BTS from worker for a fund?

don't you think that's reluctant?

why not just get the 1M BTS for the fund? why?

now there are 3.9M BTS in committee-account, with setting margin call price at the GS price, 94K bitUSD can be borrowed, why not borrow bitUSD and release to the market but burn these BTS?
« Last Edit: July 25, 2019, 03:43:28 am by bitcrab »

Offline Thul3

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Re: Thoughts on new OMO fund
« Reply #2 on: July 25, 2019, 06:40:09 am »
I haven't seen it.
I only saw the proposal on usdoperator.

Just saw committee bought out debt of the cny operator and is now trying to burn 1 million BTS.
Thats a total waste and i think something like that should be announced by the committee to the community.

At current stage decreasing liquidity and burning BTS makes totaly no sense.


Please give more input about the OMO fund so we can open an OMO worker asap




« Last Edit: July 25, 2019, 07:00:01 am by Thul3 »

Offline bitcrab

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Re: Thoughts on new OMO fund
« Reply #3 on: July 25, 2019, 08:01:40 am »
I think the several million BTS in committee-account and the accumulated market fee can be put in fund, I don't think it's good idea to get fund via worker.

Offline pc

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Re: Thoughts on new OMO fund
« Reply #4 on: July 25, 2019, 08:59:50 am »
IMO a proposal for a new OMO fund must first and foremost

* analyze what went wrong with the previous OMO fund - AFAIK there are still many unanswered questions here in the forum
* identify the cause(s) of that total desaster
* propose solutions that will plausibly eliminate these causes

Furthermore, the apparent lack of self-reflection from most people involved in the previous OMO fund (including those who voted for it) gives me a very bad feeling about future operations of the same kind, *especially* if will be run by the same persons again!
Bitcoin - Perspektive oder Risiko? ISBN 978-3-8442-6568-2 http://bitcoin.quisquis.de

Offline Thul3

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Re: Thoughts on new OMO fund
« Reply #5 on: July 25, 2019, 09:20:58 am »
-Bad time of opening an OMO fund.It was opened at a way to high price in a bearish market for altcoins
-No strict rules
-lack of governance
-low CR (under consensus)
-No risk reduction with falling BTS price



Currently we have the oposite in the market.
Have a look at the charts



Currently BTS like majority of altcoins are in accumulation mode.
BTS is slowly growing against BTC .

There are of course way more big indicators but that would be an extra thread .


What would be also important is to raise CR of the OMO fund with raising BTS prices as the risk of bigger decreasing prices increases
« Last Edit: July 25, 2019, 09:24:33 am by Thul3 »

Offline bench

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Re: Thoughts on new OMO fund
« Reply #6 on: July 25, 2019, 05:55:47 pm »
The funds should be used to finance a bitUSD/BTS DEXbot worker with RO strategy. Profits can be used to finance other workers.

Some liquidity in the bitUSD/USDT market with tighter spreads are also needed!
« Last Edit: July 25, 2019, 06:00:08 pm by bench »

Offline ripplexiaoshan

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Re: Thoughts on new OMO fund
« Reply #7 on: July 26, 2019, 04:44:44 pm »
I support this proposal. BTS price is in a very safe region.
BTS committee member:jademont

Offline bitcrab

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Re: Thoughts on new OMO fund
« Reply #8 on: July 28, 2019, 09:28:04 am »
1. Do not creater worker to get more BTS, just use the current accumulated BTS in committee-account and the smartcoin market fees which is generated everyday.

2.maintain a USD debt position.
A.the margin call price should always be under GS price, otherwise, the coming funds can only be used to increase the CR of the debt position.
B.if BTS price is underestimated, "borrow and buy", if BTS is common, do nothhing, if BTS price is overestimated, sell.
operaters need to reach consensus on whether the BTS is understimated, common or overstimated.

in my view, currently we can adopt below prices as merits:
<0.05USD: underestimated.
0.05-0.075USD: common.
>0.075USD, overestimated.




Offline Customminer

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Re: Thoughts on new OMO fund
« Reply #9 on: July 30, 2019, 12:59:08 am »
Would it only focus on core bitassets? Or could private smartcoins like the norns be in scope?

Offline bitProfessor

Re: Thoughts on new OMO fund
« Reply #10 on: July 30, 2019, 08:37:38 am »
The funds should be used to finance a bitUSD/BTS DEXbot worker with RO strategy. Profits can be used to finance other workers.

Some liquidity in the bitUSD/USDT market with tighter spreads are also needed!
+5

Offline bitProfessor

Re: Thoughts on new OMO fund
« Reply #11 on: July 30, 2019, 08:56:00 am »
Support

Offline finn-bts

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Re: Thoughts on new OMO fund
« Reply #12 on: July 30, 2019, 10:09:35 am »
Support please implement as soon as possible

Offline bitcrab

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Re: Thoughts on new OMO fund
« Reply #13 on: August 07, 2019, 03:05:01 pm »
The new OMO Fund should have imo 4 accounts which would be splitted into  USD,CNY,EUR,USDT .
Focus should be on bitUSD and bitCNY with bigger focus on bitUSD.
The fourth account for USDT should be funded once the big bad debt from bitUSD disappears.
USDT should be offered 1:1 against bitUSD with a (0.2% growth margin).
By creating a liquid USDT/BitUSD market on DEX we hopefully will support bitshares prices on CEX'es via arbitrage with the strong inhouse demand we have here on DEX(it should also close the current big spreads on other major assets).Price manipulation on CEX would be more difficult and any downtrend on CEX could be decreased with the help of the liquidity on DEX.
BTS prices of 3% above the DEX feed prices (CEX) are happening very often which would support prices on CEX when a liquid bitUSD/USDT market on DEX exist.

I don't think USDT should be involved.
actually we are running a bot for arbitrage in BTS/GDEX.USDT between DEX and binance, there's not so much trading opportunity and do not make big sense.
the new fund should focus on BTS/smartcoin trading, and currently, it should ignore BTS/CNY pair and focus on BTS/USD pair, maybe also BTS/EUR pair.

what shall we learn from previous OMO fund?
I admit that as the key organizer of the previous OMO fund I have some unfeasible idea at that moment, I have hoped that OMO can provide a strong sustain to BTS price, but the market told that no one can counter with extreme market trend, even you have hundreds of millions of BTS.

another key factor is that, at that moment, smartcoin rules is not robust enough to resist shorting attack. that's why I tried my best to push GS protection and MSSR&MCR reduction after the disaster.

Offline Sapiens

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Re: Thoughts on new OMO fund
« Reply #14 on: August 10, 2019, 12:10:56 am »
I support only if the so called OMO fund is planned as a mean to pay the workers using stable SmartAssets instead of bts.

Also, aside from BitFiat, the fund should help revibe BitBtC