AVG moving again 2 million BTS to poloniex.From there again bigger amount to Binance.
The true is, we can't stop him.
Maybe he like to do these thing.
A liquid market of major assets and arbitrage bot could stop it.
In my opinion a key factor for bitshares to stop these dumps and create real price support.
Getting active instead of waiting.
Using DEXBot to make the market between bitUSD and OPEN.USDT
DEXBot bitUSD:OPEN.USDT Market Making
Permie
1. What are bitUSD and USDT?
1.1 bitUSD is a USD-pegged SmartCoin that is created by locking bts as collateral and bitUSD being issued as a loan.
1.2 USDT is a USD-pegged cryptocurrency that is in very popular use in the Cryptosphere as the favoured price stable asset.
2. Market Making bitUSD against USDT:
2.1 See jonnybitcoin’s excellent article here:
https://steemit.com/bitshares/@jonnybitcoin/liquidity-liquidity-liquidity2.1.1 “Bitshares is superior to other exchanges because it uses BitUSD which has no human liability and is decentralised. But this advantage means little if our BitUSD is not available to buy in quantity near the peg. A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted into cash is similar to cash itself because the asset can be sold with little impact on its value.”
2.1.2 “We need to make BitUSD a liquid asset. But how?”
2.1.3 “The best way to show people BitUSD is worth 1 USD is to create a market where BitUSD trades against a bearer asset that is worth 1 USD. That would be USDT (see
www.tether.to) Bearer asset = Doesn't need to be kept in a named account.”
3. The bitUSD:OPEN.USDT Market on the DEX:
4. Recently in the BitShares community there has been a lot of discussion on price decreases caused by high sell pressure when bts whales want to cash out of bts into a Centralised EXchange.
4.1 The price-feed used to calculate the margin call price of BitShares Flagship assets bitCNY and bitUSD are obtained from the trade prices across major CEX’s that list bts. If bts on these CEX’s are dumped and lowers the price; the price feed on the DEX is also dumped - calling more margin positions.
4.2 These called margin positions then dump (sometimes large) amounts of bts onto the DEX, further decreasing the price and moving the market-price on the DEX far away from the “price feed” (bts-price on CEX’s).
4.3 The difference between the “feed price” and the DEX “market price” of bitUSD is known as the “premium”. A lower bts:USD market-price on the DEX than that which is available on the CEX’s-used-for-price-feeds means that bitUSD becomes worth 1-5% more than 1USD. This is due to the fact that bitUSD held on the DEX can buy more bts (because the DEX bts price is lower) than could be bought on a CEX using USD or USDT.
4.3.1 The bitUSD:USDT price reflects this premium. If bitUSD is trading at 1.01USDT, this means bitUSD is worth 1% more than $1.
5. The DEX needs liquidity against major assets that are widely available on CEX’s. The top 11 most active markets for bts across CEX’s are all either BTC or USDT.
5.1 A liquid market for USDT:bitUSD on the DEX makes it easy for CEX holders to trade into the DEX and away from the CEX. If a trader on a particular CEX is worried about the risk of their CEX going bankrupt, they need a way to move exchanges.
5.1.1 The vast majority of CEX’s list USDT, and USDT is often a primary trading pair against a wide range of cryptocurrencies. This means to migrate from one exchange to another traders can sell all of their assets for USDT, transfer USDT to their destination exchange, and then reallocate their portfolio once there.
5.1.2 The DEX needs to offer an easy way for “fleeing” traders to make the choice that the DEX should be their destination exchange. The “easy” way is for these traders to see that they can transfer USDT into the DEX just as they would any CEX.
5.1.3 Alongside all the many benefits of the DEX, a trader seeing that not only can they leave CEX’s but that they can also leave USDT in favour of a decentralised stablecoin bitUSD is further incentive to come to the DEX to trade.
5.1.4 This can only happen if there is a highly liquid USDT market active on the DEX. Sending USDT to the DEX and having nowhere to trade it for a reasonable price causes the trader to rethink their decision to try the DEX.
5.2 The most liquid USDT asset available on the DEX for trading is OPEN.USDT. DEXBot could help. DEXBot allows its users to provide liquidity to the bitUSD:USDT market.
5.3 A whale moving large amounts of bts onto a CEX in order to be sold can cause big problems for the price feed.
5.3.1 If these whales see that they can instead move from DEX to CEX via USDT, the problem is lessened, as the selling of bts for USDT would occur on the DEX and not affect the price feed.
6. Another prominent issue on the DEX is that the circulating supply of SmartCoins is often not sufficient for large bitCNY debtors to buy back the bitCNY they owe to the blockchain in order to settle or lower their debts and avoid margin call.
6.1 A liquid bitUSD:USDT market increases the circulating supply of SmartCoins and helps to address this issue.
6.2 bitUSD is traded heavily on the DEX against bitCNY. Any liquidity for bitUSD against external assets is also good for bitCNY; as bitUSD can be quickly traded for bitCNY with minimal slippage.
6.2.1 bitCNY debtors who also trade on CEX’s therefore benefit from a liquid bitUSD:USDT market; as they would be able to transfer additional funds to the DEX via USDT in order to service their debts.
7. The bitUSD:OPEN.USDT market generally has low volatility because OPEN.USDT and bitUSD both have the same face value of $1. They should be equal to each other plus the current bitUSD premium.
8. How to configure DEXBot to facilitate USDT to bitUSD trade:
8.1 The bitUSD:OPEN.USDT market will fluctuate in price, and the bid or ask may sometimes exceed 1. This makes it difficult to set a fixed centreprice.
8.2 However, DEXBot, allows the spread and centre price to be calculated from the orderbook at a particular depth. Choosing to calculate the spread using the “dynamic spread” tickbox (shown in orange in the example image above) tells DEXBot to view the orderbook and place orders at the same spread as other traders that provide a given amount of liquidity. In the above example $500 market depth.
8.3 DEXBot also allows the centreprice to be configured according to the market depth of the orderbook. Shown in yellow in the above example. Setting both the centre price and spread to be calculated from the orderbook at a market depth of $500 tells DEXBot to offer a competitive spread regardless of how the market fluctuates.
8.4 After configuring the Relative Orders strategy to trade the USD:OPEN.USDT market and saving the settings, pressing the “Turn worker on” button let’s DEXBot start making offers. Shown in green in the above example.
The CEX-DEX Arbitrage and "Mirrored Arbitrage" features for DEXBot are in development and will further assist by creating tools to improve the liquidity on the DEX and help to lower the SmartCoin premiums.
Topic: AVG2907 dumping price massivly ? (Read 17990 times)
