Author Topic: Thoughts on new OMO fund  (Read 46618 times)

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Offline bitcrab

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I drafted a suggestion on this, hope you can also review it. https://bitsharestalk.org/index.php?topic=29278.0 @Thul3
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Offline bitcrab

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Where does the initial fund come from?

I feel the accumulated BTS and accumulated smartcoin fee in committee-account can be used.

I don't think it's good to get BTS via worker proposal, but I feel we can keep the possibility open, to get BTS via a worker proposal need another independent voting.

how to organize the operation team? will the operators be paid? and how?

A mulitsig account will be built to operate the fund, either 2/3 or 3/5 multisig is OK.

members who want to do this job and are also trusted by the community can join.

the fund will be calculated BTS based net value every quarter, if net value increase >0, then 50% of the net value will be paid to the operation team, otherwise there will be no payment.





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Offline bench

When does OMO fund start?
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Offline bitcrab

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Quote
While BTS price is underevaluated, borrow smartcoin and buy more BTS.
While BTS price is overevaluated, sell BTS to close the debt positions.
Could you define that please what exectly eans undervaluated and overevaluated ?

first suppose that 0.2175CNY is the long term bottom price.

for undervaluated price I'd like to define like this:

0.2175*MCR = 0.348 CNY, or 0.05 USD

which means, if the price is undervaluted, if you borrow with setting your margin call price < GS price, you have no worry for margin calling.

top price in the last 9 months is 0.5377CNY

overvaluated price = 0.5377/1.05 = 0.512CNY, or 0.073USD.

« Last Edit: August 13, 2019, 07:56:00 am by bitcrab »
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Offline Thul3

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Quote
While BTS price is underevaluated, borrow smartcoin and buy more BTS.
While BTS price is overevaluated, sell BTS to close the debt positions.

Could you define that please what exectly eans undervaluated and overevaluated ?

Offline bitcrab

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what's the mission of the New OMO fund?

There are proposals to burn BTS in committee-account, that is one action for the community to push up the price of BTS.

But that proposals is not supported by committee members, in my view to burn BTS make little sense, more than 200K BTS are released every day via worker proposals, comparing to this amount the BTS to burn is too few.

Comparing to just burn the accumulated BTS in committee-account, I believe it's better to put the BTS into the so called New OMO fund.

A debt position will be managed under this fund.

While BTS price is underevaluated, borrow smartcoin and buy more BTS.
While BTS price is overevaluated, sell BTS to close the debt positions.

The fund will show that it's possible to manage a debt position well, especially with continuous income.
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Offline Sapiens

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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

Offline bitcrab

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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.
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Offline finn-bts

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Support please implement as soon as possible

Offline bitProfessor


Offline bitProfessor

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 R

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Would it only focus on core bitassets? Or could private smartcoins like the norns be in scope?

Offline bitcrab

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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.



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Offline ripplexiaoshan

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I support this proposal. BTS price is in a very safe region.
BTS committee member:jademont

Offline bench

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 »
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