Author Topic: (Pseudo-) REPURCHASE AGREEMENT - Sketch of an idea for discussion.  (Read 1558 times)

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Offline bitstopia2049

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This was originally a MS Word doc but somehow most of the formatting info got lost when converting to a PDF..!!  If someone wants to host a the original doc I will email it

Anyway here's the link


https://www.pdf-archive.com/2019/08/16/prepo2discussion/

and password =  Oduesp2


This is just a general outline to get the thoughts down on paper

« Last Edit: August 20, 2019, 01:10:01 am by bitstopia2049 »

Online sschiessl

Re: (Pseudo-) REPURCHASE AGREEMENT - Sketch of an idea for discussion.
« Reply #1 on: August 16, 2019, 03:35:16 pm »
It doesn't load for me.. Can you upload it somewhere else please? I saw some bits of text, this is some kind of HTLC proposal?

Offline bitstopia2049

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Re: (Pseudo-) REPURCHASE AGREEMENT - Sketch of an idea for discussion.
« Reply #2 on: August 16, 2019, 04:31:01 pm »
It doesn't load for me.. Can you upload it somewhere else please? I saw some bits of text, this is some kind of HTLC proposal?

OK..I have emailed it to you..

but also try the link again, the web preview is working
« Last Edit: August 16, 2019, 04:40:09 pm by bitstopia2049 »

Offline bitstopia2049

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Re: (Pseudo-) REPURCHASE AGREEMENT - Sketch of an idea for discussion.
« Reply #3 on: August 20, 2019, 01:09:25 am »
CASCADING PREPOS   Pseudo-REPO


Buterin Ethereum blockchain is full..
https://cointelegraph.com/news/vitalik-buterin-talks-scalability-ethereum-blockchain-is-almost-full


Environment:             ETH   High Market Value       High transaction fees    (Blocktivity congestion)

                       BTS         Undervalued Market     Low transaction fees     (Blocktivity abundance)


Solving the (mini) Whale problems...

Suppose portfolio asset:   Blue (ETH) Whale - 5100 ETH       Grey (BTS) Whaele -  25m BTS


Motivation:              Blue needs to pay for a child's college tution and also wants to buy Gold for that child for the long term because he's currently engaged in divorce proceedings. 

                 Grey needs a binder deposit in seven days or less to secure a purchase contract for a coveted piece of real  estate bid on at auction or lose out to a rival bidder.


Problem:      Blue has a limitation on his ability to liquidate assets until the financial and tax due diligence is completed by his spouse's law firm.


      Grey has very little time and does not want to be forced to liquidate his holdings at such an undervalued
                price which will certainly undergo slippage and may even cause a price plunge.


      Neither Blue nor Grey wants to pay unnecessary high ETH transaction fees and both have high blood pressure.!


Pseudo REPO = PREPO #442


HTLC   #8711   
      BLUE swaps 500 ETH with GREY for 2.75m BTS    Duration:   30 days  w/Rollovers   Daily Interest Rate: 0.0010958%


HTLC  #8711a          BLUE allocates 1000 ETH as collateral     MCR= 200%

                         GREY allocates 5.5m BTS as collateral     MCR = 200%



                              {Could convert to [specific or Universal] StandBy HTLC }

   Note:For  Newbies
  Borrowing from oneselfhttps://steemit.com/bitshares/@sc-steemit/how-to-borrow-from-yourself-on-the-bitshares-platform


Activities:    BLUE produces $25k bitUSD leveraging BTS 1.316 m as collateral with MCR = 2.0

      BLUE produces $20k bitUSD leveraging BTS 1.026 m as collateral with MCR = 2.0


      So he exchanges $25k bitUSD for BTC and transfers to the child's Coinbase acct. for the tutition


      He converts $20k bitUSD to fiat (via BTC) or P2P (Bitsy) and purchases gold bullion bars from a local dealer.
                                                                                          https://d.tube/#!/v/agorise/kvbh7rumaww
      
      He will use the remaining BTS received to produce bitGold smartcoins to start his Gold hedge.



      A CASCADE could be generated if BLUE instead had swapped 1000 ETH for 5.5m BTS
                and allocated 2000 ETH for collateral.
   
       and after completing PREPO #442.. initiates a new 30 day PREPO #443. 

      Firstly uses ~3.0m BTS to short bitGold smartcoins (~ 23oz/660g)   with MCR > 300%    (~US $35k)

      and then swaps the bitGold for BTC. He then uses BTC to exchange for stablecoins, USDT, bitCNY,USD,EUR,KRW, etc.

      and subsequently for any other cyrpto asset desired..{LTC, XRP..etc..}

      With large enough volumes the CASCADE could continue to leverage various assets received.


                  =========================================


      GREY converts 150 ETH to fiat using his CEX account (Coinbase.etc.) to be able to fund the binder deposit.

      GREY uses the remainder 350 ETH to generate a CASCADE HTLC


      A CASCADE is generated by starting a new PREPO #444 with GREY swappng 100 ETH for 25K XMR
      and allocates 250 ETH for collateral.  MCR= 250%

      He splits the XMR into a 50% long postion and exchanges 50% for a basket of stable coins to be able
      pounce on any buying opportunities that surface in the 30 day contract or extended Rollover period.

      Again, large enough CASCADE volumes can generate a multiplicity of opportunities or deal with more complicated
      motivations.
      
« Last Edit: August 20, 2019, 04:02:44 am by bitstopia2049 »

Online sschiessl

Re: (Pseudo-) REPURCHASE AGREEMENT - Sketch of an idea for discussion.
« Reply #4 on: August 20, 2019, 05:25:11 am »
It doesn't load for me.. Can you upload it somewhere else please? I saw some bits of text, this is some kind of HTLC proposal?

OK..I have emailed it to you..

but also try the link again, the web preview is working

Please host it somewhere and link it in here

Offline bitstopia2049

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Re: (Pseudo-) REPURCHASE AGREEMENT - Sketch of an idea for discussion.
« Reply #5 on: August 22, 2019, 01:46:21 am »
It doesn't load for me.. Can you upload it somewhere else please? I saw some bits of text, this is some kind of HTLC proposal?

OK..I have emailed it to you..

but also try the link again, the web preview is working

Please host it somewhere and link it in here

The pdf download link where it is currently hosted is working..

Offline bitstopia2049

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Re: (Pseudo-) REPURCHASE AGREEMENT - Sketch of an idea for discussion.
« Reply #6 on: August 22, 2019, 02:01:20 am »

......................Regarding bitBTC
https://bitsharestalk.org/index.php?topic=29259.msg333903#msg333903

So how to short BTC on the DEX against stablecoins, or other cyrpto assets given difficulties associated with bitBTC?


Solving the dolphin (and minnow) problems...i.e. also generate lots of smaller trades on the DEX and bring in more transaction, contract and referral fees, etc..revenue to PAY WORKERS and alleviate some INVESTOR BTS inflation concerns..(BTC may be trading within a narrow range for a while...i.e sideways.. In the meantime give incentive to newbies to learn how to trade without taking big risks, and non-LTM's to earn income from referrals, spread the word about BitShares..(Poloniex has reduced a lot of there available Margin trading pairs and..especially XMR..Hint: they have a trollbox..)   



PREPO # 622

 
Trader wants to short 0.1 BTC   using either stablecoins or ETH as collateral...

Market Maker (e.g OMO Fund) is counterparty using either stablecoins or BTS as collateral...


INSWAP  HTLC 1    TRADER swaps 1k bitUSD (or USDT or equivalent bitCNY)   for 0.1 BTC

   HTLC 1A      MARKET MAKER sends 0.1 BTC for 1k bitUSD  (or USDT or equivalent bitCNY)


Parameters:     Duration: 7 days  (w/Rollovers)      Daily Interest rate: 0.0010755%
           
     
Reduced STARTING COLLATERAL REQUIREMENTS


EXSWAP   HTLC  2          TRADER can allocate any amount -- 1k, 0.5k, 0.33k, 0.25k, 0.2k USDT as collateral

                HTLC  2A        MARKET MAKER allocates 30k BTS as collateral



Set Margin Call ratio = [1.1]    and assume BTC = $US 10k


Starting SWAP Ratio =   {Collateral + Short Sale proceeds} / Debt (INSWAP asset owed)   



TRADER starting position Day 1 depends on how much is allocated for collateral..


   if 1k  then SWAP Ratio = 2.0     {1k + 1k} / 1k = 2
      

    0.5k   SR = 1.5     0.33k   SR = 1.33      0.25k   SR = 1.25     0.2k   SR = 1.2



So the less collateral allocated the smaller the buffer against volatility...


e.g      Swap Ratio - Margin Call ratio =  1.5 - 1.1 = 0.4 =   40% Buffer Ratio..


Rule:   If BR is less than ~ 5%   this could be considered similar to the function of the TCR (Target Collateral Ratio)
        and recommend to or notify trader to increase collateral...   


   If BR is < 1%  this initiates PMC procedures...


Obviously with crypto the variables are lot more dynamic but it's the same basic calculation and The Market Maker in this example would have 1k bitUSD to engage in further trading activities,

e.g. buy more BTS, or altcoins, or produce other bitAssets, or open other short positions via PREPO..