Author Topic: How to use Committee Funds  (Read 465 times)

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Offline fav

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How to use Committee Funds
« on: September 16, 2019, 09:21:41 am »
this is controversial, but in my opinion the best way forward.

Committee should buy DAI and put it in a savings account. With smartcontracts selecting the best interest pool, you're able to keep a steady 10% APR with relative moderate risk.

The interest generated should be used every month to buyback BTS and then moved to the Pool.

Once (if ever) BitShares has a similiar DeFi available, the operation should obviously be moved back on-chain.
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Offline Bangzi

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Re: How to use Committee Funds
« Reply #1 on: September 16, 2019, 10:13:04 am »
1. Short Term Loan for Worker Proposals, Witnesses, Developers and KYC BTS Members
- Short term loan for WP, Witnesses ad Developers who need urgent money, the loan is backed by their future 1-2 months income. The interest rate suggested is 5-10% per month, if interest too low it may be abused. No KYC Required.
- Short term loan for long term BTS Holders, KYC required since they have no future income from Bitshares to support them. Interest rate suggested is 15-25% per month. Set a maximum limit how much they can borrow to reduce risk.

2. Invest in Startup/Business
- Some entrepreneurs have the knowledge and skill to build a business but lack of funding. If Committee decided to invest into them, then request them for a permanent free advertising slot for Bitshares (especially online business), integrate BTS and BitCNY/USD in their payment gateway and share a portion of their future profit.
- Invest in Startup/Business is very risky but worth to try because it is a good method to have great exposure to business world and if any of the business become successful, then Bitshares have positive cash flow outside of DEX.
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Offline clockwork

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Re: How to use Committee Funds
« Reply #2 on: September 16, 2019, 10:17:04 am »
1. Short Term Loan for Worker Proposals, Witnesses, Developers and KYC BTS Members
- Short term loan for WP, Witnesses ad Developers who need urgent money, the loan is backed by their future 1-2 months income. The interest rate suggested is 5-10% per month, if interest too low it may be abused. No KYC Required.
- Short term loan for long term BTS Holders, KYC required since they have no future income from Bitshares to support them. Interest rate suggested is 15-25% per month. Set a maximum limit how much they can borrow to reduce risk.

2. Invest in Startup/Business
- Some entrepreneurs have the knowledge and skill to build a business but lack of funding. If Committee decided to invest into them, then request them for a permanent free advertising slot for Bitshares (especially online business), integrate BTS and BitCNY/USD in their payment gateway and share a portion of their future profit.
- Invest in Startup/Business is very risky but worth to try because it is a good method to have great exposure to business world and if any of the business become successful, then Bitshares have positive cash flow outside of DEX.

5-10% / month? that's 200-300% APR...

We're a decentralized exchange....not decentralized loansharks :D

Offline bench

Re: How to use Committee Funds
« Reply #3 on: September 16, 2019, 11:21:36 am »
Once (if ever) BitShares has a similiar DeFi available, the operation should obviously be moved back on-chain.

Integration of lending to earn interest and improve liquidity on the DEX is one the most important things:
- https://github.com/bitshares/bsips/issues/213
- https://github.com/bitshares/bsips/issues/182
- https://github.com/bitshares/bsips/issues/170

Alternative is burn BTS:  https://bitsharestalk.org/index.php?topic=28508.0
« Last Edit: September 19, 2019, 12:31:29 am by bench »
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Offline Bangzi

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Re: How to use Committee Funds
« Reply #4 on: September 16, 2019, 11:34:33 am »

5-10% / month? that's 200-300% APR...

We're a decentralized exchange....not decentralized loansharks :D

Obviously now is brainstorming phase. Please try to think out of the box, don't limit yourself as decentralized exchange. There are so many things we can do with the fund.

3. Competition - Promote new feature such as the prediction market. The competition should run in testnet, bring new users to try the feature, report bug and UI team can improve user experience based on their feedback.

4. Donation - Donate when some disaster happen, just to help people and get some media exposure. We can even setup an account for donation fund eg. DisasterABC-Donation, everyone who want to donate can send money to this account, it is transparent, everyone can check it and avoid middlemen corruption.
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Online binggo

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Re: How to use Committee Funds
« Reply #5 on: September 16, 2019, 11:42:03 am »
Let's sell all the BTS to buy BTC, then BTC go up to 1M dollor, we will win. :D :D
« Last Edit: September 16, 2019, 11:44:30 am by binggo »

Online binggo

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Re: How to use Committee Funds
« Reply #6 on: September 16, 2019, 11:49:38 am »
Maybe a simple lending pools like https://github.com/bitshares/bsips/issues/182 will let the reserve pool get interest with no risk.

 
Quote
MCR=1.6
 1. Alice cr>1.6,
 2. Price drop,
3. Alice's cr is close to 1.6, she will be margin called soon,
4. Alice can borrow bitasset/bts from Bob to keep her debt not be margin called when her cr>=1.5 or other parameter(set by community member),and she must keep her synthetic cr >=1.6 with the lend asset.
5. Alice must pay Bob interest every day in advance,
6. Price drop again,
7. Alice's cr is close to 1.5, if she didn't add more asset to keep her cr >=1.5, when her cr <1.5 or her synthetic cr <1.6, her will must be margin called.
8. When Alice was margin called, the asset which borrow from Bob reback to Bob.
9. The interest was determind by the market.
10. If the Bob didn't want frequent operation, he can put his asset in a liquidity pool let the system do this, but he maybe get less interest than market. The interest of liquidity pool will be average of the market interest(>0).
11. If Bob lent his asset to Alice, he will can't get back his asset except Alice closed this contract or been margin called or set a time threshold.
12. If Bob lent his asset, his asset will be locked in his account or locked in a special pool.

Quote
前提参数:
抵押率cr
维持最低抵押率与爆仓抵押率均为:1.6 (理事会可调参数)
借贷之后的爆仓抵押率:1.5(理事会可调参数)
自己+借贷来的债仓的综合抵押率

1.小红的抵押率 cr>1.6;
2.价格下跌;
3.小红的抵押率无限接近于1.6,就要爆仓了;
4.小红此时可以从小明借贷智能资产/bts来保证她的债仓在大于借贷爆仓抵押率(也就是她自己的抵押率cr)>=1.5(或者其它由理事会设定的参数)的情况下不会被强平,同时保证自己+借贷来的债仓的综合抵押率必须大于1.6;
5.小红不能动用从小明借贷的资产;
6.小红必须提前每日支付给小明利息;
7.价格又跌了;
8.小红的抵押率无限接近与1.5,如果她不增加抵押率或者还一部分款的使自己的抵押率cr>1.5的话,一旦小于1.5或者自己+借贷来的债仓的综合抵押率小于1.6,她就会被系统强制平仓;
9.小红一旦被触发强平,从小明借贷的资产将会归还给小明;
10.利息费由市场决定;
11.如果小明不想自己频繁手动操作,可以将想要借出的资产放入系统设置的一个借贷池中,由系统自动操作,但是可能获得的利息少于市场利息,借贷池的利息是市场利息的中位数;
12.如果小明借贷给小红资产,在借贷时间没有到期或者小红没有主动终止合约或者小红没有被强平之前,小明不能撤回资产;
13.小明借贷出的资产,将会锁定在自己的账户或者一个特殊设计的资金池中;
14.利息类型的支付可以按照抵押物的类型进行决定;
15.没有进行这样借贷的抵押者如果cr<1.6, 就会直接被系统强平。

当然这个简单的方案是一个比较保险的方法: 持有智能资产及bts的都可以去借贷获利,变相的staking.

当然也有一个风险极高的方案就是:借贷人与借出人实行共同抵押率,这可能就需要一个长期借贷市场来进行运作,风险也比较大,比如抵押者可以进行长期借贷(比如借贷物是bts,毕竟智能资产会大量减少)来保证共同抵押率极高,来熬过寒冬,而只需要支付利息即可,当然可能抵押者自己的抵押率在价格不断下跌的过程中<1,又付不起利息,导致绷喀崩

当然也可以再延伸一下,比如小明可以进行借贷的资产是BTC等,或者lending功能上线之后, 可以将bitcny/BTS给其它资产进行如此的借贷, 比如资金池拨付一部分资金进行无风险借贷等
« Last Edit: September 16, 2019, 11:52:47 am by binggo »

Offline bench

Re: How to use Committee Funds
« Reply #7 on: September 16, 2019, 12:06:31 pm »
Maybe a simple lending pools like https://github.com/bitshares/bsips/issues/182 will let the reserve pool get interest with no risk.

Thank you for mentioning this as simple!
« Last Edit: September 19, 2019, 02:16:26 am by bench »
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Offline R

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Re: How to use Committee Funds
« Reply #8 on: September 16, 2019, 05:07:12 pm »
1. Short Term Loan for Worker Proposals, Witnesses, Developers and KYC BTS Members
- Short term loan for WP, Witnesses ad Developers who need urgent money, the loan is backed by their future 1-2 months income. The interest rate suggested is 5-10% per month, if interest too low it may be abused. No KYC Required.
- Short term loan for long term BTS Holders, KYC required since they have no future income from Bitshares to support them. Interest rate suggested is 15-25% per month. Set a maximum limit how much they can borrow to reduce risk.

2. Invest in Startup/Business
- Some entrepreneurs have the knowledge and skill to build a business but lack of funding. If Committee decided to invest into them, then request them for a permanent free advertising slot for Bitshares (especially online business), integrate BTS and BitCNY/USD in their payment gateway and share a portion of their future profit.
- Invest in Startup/Business is very risky but worth to try because it is a good method to have great exposure to business world and if any of the business become successful, then Bitshares have positive cash flow outside of DEX.

5-10% / month? that's 200-300% APR...

We're a decentralized exchange....not decentralized loansharks :D
What about buying and holding peak norns long term? Would lock up 2x BTS in collateral & would offer peak norn shorters up to 0.8% debt destruction per day.

Alternatively, could use committee funds to algorithmic-ally buy norn troughs then settle their peaks to earn approx 0.8% per day.

Norns potentially enable greater rates with less risk than those offered by Bangzi & Dai 👍
« Last Edit: September 16, 2019, 10:08:44 pm by Customminer »

Offline R

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Re: How to use Committee Funds
« Reply #9 on: September 16, 2019, 05:08:03 pm »
Let's sell all the BTS to buy BTC, then BTC go up to 1M dollor, we will win. :D :D
Workers dumping bts is bad, but gamblers dumping bts is good? lol