Author Topic: Shorting Attack Protection?  (Read 990 times)

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Online bitcrab

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Shorting Attack Protection?
« on: September 25, 2019, 11:24:28 am »
Last night, BTC experienced a price fall of more than 15%, and BTS more than 20%.

What we have oberserved at ZB:

In one hour 400M BTS are sold, obviously not real trading.
BTS withdraw is forbidden in a long time.
as many traders have accounts in ZB and other CEX, they can arbitrage without withdraw/deposit, so finally BTS price in all the CEX fall down.

IMHO this is a typical shorting attack, the margin call mechanism in DEX actually always help this kind of shorting attack, the whole BTS ecosystem suffer this shorting attack for long time, I feel we need to find some solution for this, as we have applied GS protection, we also need some "shorting attack protection"  , otherwise I can't see the future of BTS.

the key point of this protection is to avoid rapid and big price fall in price feeding following the market price, for example, we can introduce MA5 in DEX as a reference:

Code: [Select]
if MA5<1.05*market price
   feed price = market price
else feed price =(MA5+market price)/2

I believe that we need one shorting attack protection algorithm to avoid the disaster like last night. we have to do something to avoid BTS price fall to 0 in rounds of shorting attack.

before the community reach consensus on this topic, can we do something?

abit is now feeding 0.22CNY and 0.035USD instead of feeding market price, is that a senseful and urgent measure to help BTS to go out of the shorting attack trap? https://bitsharestalk.org/index.php?topic=29633.0

as some witnesses had done to avoid bitCNY falling in GS before the GS protection BSIP is approved by stakeholders?
« Last Edit: September 25, 2019, 11:27:17 am by bitcrab »

Offline abit

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Re: Shorting Attack Protection?
« Reply #1 on: September 25, 2019, 12:48:55 pm »
My idea is essentially to stop maintaining the peg when we can't afford to maintain it.

The cost to maintain the peg "in all conditions" is simply too big for us. Better to give up at some point.
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Offline Thul3

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Re: Shorting Attack Protection?
« Reply #2 on: September 25, 2019, 12:58:36 pm »
Would this happen it would have a nice side effect.People would be buying with major assets on CEX as it would be significant cheaper.
« Last Edit: September 25, 2019, 01:04:55 pm by Thul3 »

Offline abit

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Re: Shorting Attack Protection?
« Reply #3 on: September 25, 2019, 01:43:45 pm »
Would this happen it would have a nice side effect.People would be buying with major assets on CEX as it would be significant cheaper.
No, bitUSD, bitCNY and etc will devalue, thus buying from CEX is not cheaper, if you're talking about my idea but not bitcrab's.

Bitcrab's idea will lead to devaluation in downtrend of BTS, but premium in uptrend which will result in force-settlement issues.
« Last Edit: September 25, 2019, 01:46:12 pm by abit »
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Online bitcrab

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Re: Shorting Attack Protection?
« Reply #4 on: September 25, 2019, 02:40:13 pm »
My idea is essentially to stop maintaining the peg when we can't afford to maintain it.

The cost to maintain the peg "in all conditions" is simply too big for us. Better to give up at some point.

Make sense.
We have paid too much to maintain the peg of bitCNY and bitUSD, which also partly cause the weak trend of BTS, and bring huge pain to the community.
gdex.witness plan to follow in.abit to guarantee the feed price be higher than 0.22CNY or 0.035USD from tomorrow before community reach an advance consensus.
« Last Edit: September 25, 2019, 02:42:19 pm by bitcrab »

Offline finn-bts

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Re: Shorting Attack Protection?
« Reply #5 on: September 25, 2019, 03:14:40 pm »
I am in favor of locking in the feed price to a reasonable position. BTS holders have suffered serious losses due to the false price offered by some external exchanges.

Offline Thom

Re: Shorting Attack Protection?
« Reply #6 on: September 25, 2019, 03:25:29 pm »
My idea is essentially to stop maintaining the peg when we can't afford to maintain it.

The cost to maintain the peg "in all conditions" is simply too big for us. Better to give up at some point.

You're scaring me @abit, I agree. But it's not consensus, is individual move. 
Injustice anywhere is a threat to justice everywhere - MLK |  Verbaltech2 Witness Reports: https://bitsharestalk.org/index.php/topic,23902.0.html

Offline Thul3

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Re: Shorting Attack Protection?
« Reply #7 on: September 25, 2019, 03:40:36 pm »
In my opiniom its taking responsabilty and some leadership.
Community is not allowed to protect itself from
manipulation because people have diffrent opinions and completly nothing is being done but just talking and suffering from obvious manipulations.

Do you see anybody else being active to look for a solution?

Offline abit

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Re: Shorting Attack Protection?
« Reply #8 on: September 25, 2019, 04:54:31 pm »
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Offline pc

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Re: Shorting Attack Protection?
« Reply #9 on: September 25, 2019, 05:32:32 pm »
stop maintaining the peg when we can't afford to maintain it.

The cost to maintain the peg "in all conditions" is simply too big for us. Better to give up at some point.

Who is "we" and "us", and what cost is associated with feeding the external price?

The obvious point where we can't maintain the peg anymore is GS price, and we have already agreed to not feed below it.

Why do you want to feed above GS if real price is lower, personal interests aside?

Feeding an arbitrary price that has nothing to do with market conditions is (once again) a kick in the ass of every smartcoin holder.
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Online bitProfessor

Re: Shorting Attack Protection?
« Reply #10 on: September 25, 2019, 06:01:58 pm »
1、yes,we have paid too much to maintain the peg of bitCNY and bitUSD.
2、It's time to think about giving up the peg of bitCNY and focus on dex.

Offline Thul3

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Re: Shorting Attack Protection?
« Reply #11 on: September 25, 2019, 06:05:19 pm »
stop maintaining the peg when we can't afford to maintain it.

The cost to maintain the peg "in all conditions" is simply too big for us. Better to give up at some point.

Who is "we" and "us", and what cost is associated with feeding the external price?

The obvious point where we can't maintain the peg anymore is GS price, and we have already agreed to not feed below it.

Why do you want to feed above GS if real price is lower, personal interests aside?

Feeding an arbitrary price that has nothing to do with market conditions is (once again) a kick in the ass of every smartcoin holder.

Why you always take the side of smartcoin holders ?
People are blocking to fight price manipulation so why should debt holder suffer from it?
Also bitshares community is already so small and not growing do you want to lose the next group ?
A major smartcoin holder has already said his opinion and blocking any movement to protect against price manipulation with the words .....I give a fuck if debt holders will get rekkt.
So why should debt holders give a fuck if he is losing his pegg if its him blocking any protection against price manipulation.

Where is your solution or discussion for price manipulation btw ?
Why don't you get upset that bitshares debt holders get rekkt because of price feed manipulation ?

Haven't seen any active discussion from you there.....only always if its about protecting the smartcoin.
« Last Edit: September 25, 2019, 06:07:45 pm by Thul3 »

Online bitProfessor

Re: Shorting Attack Protection?
« Reply #12 on: September 25, 2019, 06:30:52 pm »
Tonight I asked Clockwork how to make BTS great? More investors, he said.
Good answer!!!
Why do investors invest in bts? Faith? No,   investors want to make money, not be eaten.
”Ah, this is the free market. Let them die naturally.“
First , this is not a question of a free economy. Secondly, BTS is an experiment, and there are still many things to be improved.
At present, we only have 5000 active users, a large number of users have left. This is not their fault, but our fault, it is the fault of bts.
As clockwork said, more investors are needed, and we should focus on how to make investors more willing to invest in bts.
1、No longer pursue 100% peg of bitCNY,Allow CNY to fluctuate in order to attract a large number of investors and arbitrageurs with low risk preferences and to activate the market。
2、Gradually increase repurchase efforts to attract investors。
3、In addition, we should stimulate market activity like casinos to attract investors with high risk preference.(thinking)

Offline pc

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Re: Shorting Attack Protection?
« Reply #13 on: September 25, 2019, 08:05:50 pm »
stop maintaining the peg when we can't afford to maintain it.

The cost to maintain the peg "in all conditions" is simply too big for us. Better to give up at some point.

Who is "we" and "us", and what cost is associated with feeding the external price?

The obvious point where we can't maintain the peg anymore is GS price, and we have already agreed to not feed below it.

Why do you want to feed above GS if real price is lower, personal interests aside?

Feeding an arbitrary price that has nothing to do with market conditions is (once again) a kick in the ass of every smartcoin holder.

Why you always take the side of smartcoin holders ?
People are blocking to fight price manipulation so why should debt holder suffer from it?
Also bitshares community is already so small and not growing do you want to lose the next group ?
A major smartcoin holder has already said his opinion and blocking any movement to protect against price manipulation with the words .....I give a fuck if debt holders will get rekkt.
So why should debt holders give a fuck if he is losing his pegg if its him blocking any protection against price manipulation.

Where is your solution or discussion for price manipulation btw ?
Why don't you get upset that bitshares debt holders get rekkt because of price feed manipulation ?

Haven't seen any active discussion from you there.....only always if its about protecting the smartcoin.

1. I'm being paid for my work in smartcoins. Last year I took losses from bitUSD global settlement, now it looks like I'm losing in bitCNY due to price manipulation.
2. Smartcoins have guarantees that keep being broken over and over again, in the interest of margin position holders.
3. Smartcoin holders are being treated unfairly by the margin position holders. Margin position holders have the voting power from BTS that is no longer theirs, and they abuse that power to bend the rules in their favour.
4. The only price manipulation I'm aware of is the manipulation performed by feed providers. Many witnesses were coerced into manipulating prices by abuse of margin position holders' voting power.
5. I don't have a solution for price manipulation. What makes you think I should have one?
6. I don't get upset about debt holders because they took their chances and lost. Now they're complaining about markets being unfair. I didn't hear complaints when they were on the winning side. Complaining when you've bet on the wrong horse is lame.

See, I'm answering your questions. Now you answer mine. I asked first, btw.
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Online alt

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Re: Shorting Attack Protection?
« Reply #14 on: September 25, 2019, 09:38:48 pm »
I agree we should protect if there are enough evidence proof CEX manipulate the price.
but it's too danger to totally ignore the price from CEX if the price continue drop.
I think give a higher price related to current price is much better than a bottom price, for example 10% higher,
this could stop mostly shorter attack, we can reduce this gap when the influence from mainipulate reduce.