Author Topic: ANN: HONEST Market Pegged Assets  (Read 4203 times)

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Offline litepresence

ANN: HONEST Market Pegged Assets
« on: January 21, 2020, 04:46:28 am »
www.litepresence.com presents:

         


and then DEX MPA's were finally HONEST...

HONEST MARKET PEGGED ASSETS
Code: [Select]
The right of nullification is a natural right,
which all admit to be a remedy against insupportable oppression.

    $$$ James Madison $$$

If it had not been for the justice of our cause,
and the consequent interposition of Providence,
in which we had faith, we must have been ruined.

    $$$ Ben Franklin $$$

Resistance and disobedience in economic activity
is the most moral human action possible.

    $$$ Samuel Edward Konkin III $$$




  1.3.5641 HONEST.CNY CHINESE YUAN FIAT
  1.3.5650 HONEST.BTC CENTRALIZED EXCHANGE BITCOIN
  1.3.5649 HONEST.USD UNITED STATES DOLLAR FIAT
  1.3.5651 HONEST.XAU GOLD TROY OUNCE 
  1.3.5652 HONEST.XAG SILVER TROY OUNCE 


UNDERLYING MARKET PEGGED ASSET TECHNOLOGY:
https://bitshares.org/technology/price-stable-cryptocurrencies/

OPEN SOURCE PRICE FEED SCRIPTS:
https://github.com/litepresence/Honest-MPA-Price-Feeds/tree/master/honest

PRICE FEED WHITEPAPER:
https://github.com/litepresence/Honest-MPA-Price-Feeds/blob/master/docs/whitepaper.md

CALL TO ARMS:
https://github.com/litepresence/Honest-MPA-Price-Feeds/blob/master/docs/call_to_arms.md

ASSUMPTIONS
An MPA is a derivative smart contract with the sole purpose of tracking the value of its underlying asset 1:1.
MPA pricefeeds should be timely, accurate, and honest; always always representing the global median price, with truth and precision.
Long term borrowers of an MPA will be required to adjust their collateral over time to prevent margin call.
The purses and interests of the owners of an MPA are more important than the purses of the borrowers of that MPA.
Borrowers have a duty and personal responsibility to maintain the collateral of MPA's, which they have speculated into existance.
Holders are lay users who expect and deserve peg and continuity of MPA's, which they own. 
MPA holders expect their owned assets will remain true to their purpose by definition.
We seek to maintain MPA's near their respective price peg most of the time.
We can accept extreme short term deviation from peg to achieve liquidation of under collateralized positions.
Deviation from peg cannot be so extreme as to result in a market wide default via core blockchain mechanisms.
The mean peg of an MPA over time is far more important than immediate peg of the MPA in any momentary instance.
We are willing to allow considerable deviation from the peg in the instant, in order to minimize the time spent off peg.
It is acceptable and expected for an MPA to be slightly overvalued or undervalued relative to the 1:1 peg, in bull or bear markets respectively. 
Monetary policy should NOT be implemented for marketing purposes or to induce borrowing with the aim of inflating the monetary supply.
Monetary policy should NOT be implemented to adjust for deviation from peg during bullish or bearish market trends.
Monetary policy should allow market participants the greatest freedom possible to make their own decisions and be repsonsible for the outcome.
Monetary policy should not waver over time as to benefit some market participants at the expense of others; whenever possible policy should be set in stone.
Monetary policy  should place the burden of default on the individual borrower, rather than the collective holders.
Monetary policy restrictions should only be implemented to prevent edge case scenarios which result in prolonged loss of peg or freezing of holder assets.
Under no circumstance should monetary policy induce an MPA to become pegged to the backing asset (typically BTS).
Under no circumstance should monetary policy induce an MPA to become frozen by the chain - "supergao".


SCELETUS
Sceletus is a neologism; latin for skeleton.   We are calculating the minimum necessary to enact a dust transaction hourly, such that there is 0.3% price precision drawn on the charts.   Whereas publishing price feed allows for borrowing; it does not draw an actual historic chart that people can see.   Sceletus is filling in that functionality.    We have managed to do a full matrix of markets across bitassets to honest pairs, plus GDEX.btc to honest pairs.  30 total pairs.   So once hourly, sceletus buys whatever quantifies as minimum dust; in graphene sense, this means that
Code: [Select]
min(base_amount, quote_amount) > 300   In USD terms this amounts to about 5 US cents transacted.  Most simply put, it is wash trading for the sake of a "reference rate" in a nascent market as opposed to wash trading for the sake of "volume".  This service of "reference rate" historic charts is provided by our feed producers.  HONEST.CNY to BTS, GDEX.BTC, bitUSD, bitCNY markets have been sceletus'd since January 25th 2020.  The remaining HONEST markets below have been sceletus'd since Feb 1st. 


HONEST to BTS markets:
https://wallet.bitshares.org/#/market/HONEST.CNY_BTS
https://wallet.bitshares.org/#/market/HONEST.USD_BTS
https://wallet.bitshares.org/#/market/HONEST.XAG_BTS
https://wallet.bitshares.org/#/market/HONEST.XAU_BTS
https://wallet.bitshares.org/#/market/HONEST.BTC_BTS

Use these links to exit from fraudulent bitCNY and bitUSD to HONEST MPA's
https://wallet.bitshares.org/#/market/HONEST.CNY_CNY
https://wallet.bitshares.org/#/market/HONEST.USD_CNY
https://wallet.bitshares.org/#/market/HONEST.XAG_CNY
https://wallet.bitshares.org/#/market/HONEST.XAU_CNY
https://wallet.bitshares.org/#/market/HONEST.BTC_CNY
https://wallet.bitshares.org/#/market/HONEST.CNY_USD
https://wallet.bitshares.org/#/market/HONEST.USD_USD
https://wallet.bitshares.org/#/market/HONEST.XAG_USD
https://wallet.bitshares.org/#/market/HONEST.XAU_USD
https://wallet.bitshares.org/#/market/HONEST.BTC_USD

Intra HONEST Markets with legit exchange rates as found in global markets:
https://wallet.bitshares.org/#/market/HONEST.CNY_HONEST.BTC
https://wallet.bitshares.org/#/market/HONEST.USD_HONEST.BTC
https://wallet.bitshares.org/#/market/HONEST.XAG_HONEST.BTC
https://wallet.bitshares.org/#/market/HONEST.XAU_HONEST.BTC
https://wallet.bitshares.org/#/market/HONEST.CNY_HONEST.XAU
https://wallet.bitshares.org/#/market/HONEST.USD_HONEST.XAU
https://wallet.bitshares.org/#/market/HONEST.XAG_HONEST.XAU
https://wallet.bitshares.org/#/market/HONEST.BTC_HONEST.XAU
https://wallet.bitshares.org/#/market/HONEST.CNY_HONEST.XAG
https://wallet.bitshares.org/#/market/HONEST.USD_HONEST.XAG
https://wallet.bitshares.org/#/market/HONEST.BTC_HONEST.XAG
https://wallet.bitshares.org/#/market/HONEST.XAU_HONEST.XAG
https://wallet.bitshares.org/#/market/HONEST.CNY_HONEST.USD
https://wallet.bitshares.org/#/market/HONEST.XAG_HONEST.USD
https://wallet.bitshares.org/#/market/HONEST.XAU_HONEST.USD
https://wallet.bitshares.org/#/market/HONEST.BTC_HONEST.USD
https://wallet.bitshares.org/#/market/HONEST.USD_HONEST.CNY
https://wallet.bitshares.org/#/market/HONEST.XAG_HONEST.CNY
https://wallet.bitshares.org/#/market/HONEST.XAU_HONEST.CNY
https://wallet.bitshares.org/#/market/HONEST.BTC_HONEST.CNY

HONEST to GDEX.BTC markets:
https://wallet.bitshares.org/#/market/HONEST.CNY_GDEX.BTC
https://wallet.bitshares.org/#/market/HONEST.USD_GDEX.BTC
https://wallet.bitshares.org/#/market/HONEST.XAG_GDEX.BTC
https://wallet.bitshares.org/#/market/HONEST.XAU_GDEX.BTC
https://wallet.bitshares.org/#/market/HONEST.BTC_GDEX.BTC


FEED PRODUCERS AND MPA SPECIFICATIONS
http://cryptofresh.com/a/HONEST.CNY
http://cryptofresh.com/a/HONEST.USD
http://cryptofresh.com/a/HONEST.BTC
http://cryptofresh.com/a/HONEST.XAU
http://cryptofresh.com/a/HONEST.XAG

TOP HOLDERS
https://bts.ai/asset/HONEST.CNY
https://bts.ai/asset/HONEST.USD
https://bts.ai/asset/HONEST.BTC
https://bts.ai/asset/HONEST.XAU
https://bts.ai/asset/HONEST.XAG


Be warned this project is very nascent; there are currently ONLY 4 feed producers and 2 more actively deploying their setup

An additional 12 candidates have been selected as potential feed producers and/or HONEST asset advisors due to their Bitshares community merit, technical expertise, and free market aligned philosophy.

We aim to provide 24/7 hourly updates of legitimate price feeds HONEST: CNY, USD, SILVER, GOLD and BTC to the Bitshares DEX.

NOTE: There will be KEY differences in implementation vs. the traditional "Bitassets" with the aim to provide:

LIQUID, FREE MARKETS, with IMMEDIATE PRICE DISCOVERY

1) we WILL NOT seek nor be held ransom by worker funding

2) tx fees will be distributed among feed producers as an incentive to provide HONEST price feeds
3) witnesses and committee members will NOT, by default, be feed producers
4) our price feed scripts will be open source
5) our price feed calculation data matrix will be published live at www.jsonbin.io for each feed producer
6) MSSR will be set to 125 instead of 101, this means YOU WILL get margin called up to 20% below market value default
7) There will be NO "flat max" market fee to benefit large transactions
8) The only retained permission/flag is to adjust market fees, all others have been permanently abandoned:

NO OWNER PERMISSIONS EXCEPT "MARKET FEE"

    YES Enable market fee:
    NO Require holders to be white-listed:   
    NO Asset owner may transfer asset back to himself:   
    NO Asset owner must approve all transfers:   
    NO Disable force settling:   
    NO Allow asset owner to force a global settling:   
    NO Disable confidential transactions:   
    NO Allow witnesses to provide feeds:   
    NO Allow committee members to provide feeds:

9) Force Settlement Delay is 60 minutes
10) Feed lifetime is 4h
11) 2% Force Settlement Offset
12) Max Settlement volume is 100%
14) Price Feed producers will be required to run the price feed scripts provided as described in the whitepaper.


We are striving to make it highly unlikely that these MPA will ever globally settle through our asset settings.


These features currently match traditional Bitassets:

MCR = 160
Total supply = 100,000,000,000 HONEST.CNY
Precision = 4 (0.0001) HONEST.CNY

Further:

We will NOT engange in "open market" corrective operations or tweaks to MCR, MSSR, etc. with an aim to achieve price parity. 
We reserve the right to move MSSR up or down at any time, but it will never approach "Bitasset 101"; as to make liquidation infeasible.
We reserve the right to move MCR up or down at any time, but our producers are obligated to never increase more than +5 daily (ie 160 + 5 = 165 MCR)
We strongly recommend YOU RESPONSIBLY CHOOSE an ICR of 200+ given the volatile nature of crypto markets and the zero restrictions we've placed on liquidation of mal investement.
We also strongly recommend that YOU follow the market prices of your collateralized investments, maintain your collateral position, and invest wisely to make PROFIT while you hold our MPAs.
We intend to act as a traditional margin market with a TREND towards price parity with the pegged asset, but with an underlying expectation of volatility.
We intend to discourage TRENDS away from price parity through IMMEDIATE liquidation of mal investment coupled with HONEST price feeds.
It is our goal to keep the HONEST markets as free and unregulated as possible within the constraints of the blockchain environment.

NOTE: I am currently the "asset owner" but my intention is to form a multisig governance around them as soon as this project gets off the ground.

It is our hope that these markets catch on like wildfire and we can soon faithfully offer additional HONEST MPA fiats, cryptos, and precious metals.

ALSO: (coming soon) I have created "HONEST" as the base UIA, there are 100,000 non divisible tokens which I will be self issuing.  This project was built entirely pro bono; I intend to offer them on the books for 100 BTS each as a tip cup.  Much love.

For more on MCR, MSSR, and ICR please visit.
https://www.investopedia.com/terms/m/margin.asp
https://en.wikipedia.org/wiki/Margin_(finance)

You can find the first feed producer price calculation data matrixes here:

https://api.jsonbin.io/b/5e221d218d761771cc92b200/latest
https://api.jsonbin.io/b/5e3622e23d75894195e3226d/latest
https://api.jsonbin.io/b/5e25c8055df640720838d768/latest
https://api.jsonbin.io/b/5e361c8850a7fe418c57ff17/latest
(additional feed producer jsonbins coming soon)

Please visit litepresence.com and check out some of my other work:

BitsharesQuant; an open source algo trading platform for the DEX,

CypherVault; an open source CLI password manager, and

NordVPN switcher; which maintains a high speed VPN connection through adversity for high bot trading up time

A final note...  Yes! This is a response:  There cannot be a need for nullification and interposition, unless there is an underlying injustice and oppression being overcome.    These MPA's are not just a new novel asset class put forth for fun; or as some idle experiment or alternative.  HONEST price feeds are in fact a remedy, for an inherent dysfunction, in the previous political order, which has led to the destruction of Bitassets, as a viable market pegged instrument.  Beyond Bitshares, HONEST MPA's are also a reaction to the events which have led to a dearth of CNY:BTC markets globally.

Long Live Bitshares!

Long Live FREE Markets!



for individual liberty,

litepresence2020


ps... if you have some time and you care to learn more about free market theory, please read this paper I type scripted a few years back by Kyle O’Donnell:

Planning the End of Planning:
Disintervention and the Knowledge Problem


http://www.ronpaulforums.com/showthread.php?492708-Planning-the-End-of-Planning-Disintervention-and-the-Knowledge-Problem

Quote
"Interventionism is distortive, disruptive, and potentially socially destructive because it attempts to defy the criticisms and possibilities of centralized planning according to the market process view of the dynamic market. Yet disintervention faces the same problems. When disintervening, political actors with necessarily limited information and knowledge must somehow decide, not only what to liberalize, but how and when. [] there is no tendency in piecemeal disintervention to successfully liberalize via correctly discovering the proper order, rate, or even what and where to disintervene."  This raises the distinct possibility that nothing short of radical movement towards anarcho-capitalism might ever achieve an outcome close to its original goals.

« Last Edit: May 12, 2020, 01:39:17 pm by litepresence »

Offline dh

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Re: ANN: HONEST Market Pegged Assets
« Reply #1 on: January 21, 2020, 05:42:46 am »
You cannot use MSSR > MCR, otherwise an asset will be globally settled immediately. GS comes when least CR position == MSSR

Correction:
Quote
  /**
   *  let HB = the highest bid for the collateral  (aka who will pay the most DEBT for the least collateral)
   *  let SP = current median feed's Settlement Price
   *  let LC = the least collateralized call order's swan price (debt/collateral)
   *
   *  If there is no valid price feed or no bids then there is no black swan.
   *
   *  A black swan occurs if MAX(HB,SP) <= LC
   */
« Last Edit: January 24, 2020, 03:37:27 pm by dh »

Offline binggo

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Re: ANN: HONEST Market Pegged Assets
« Reply #2 on: January 21, 2020, 09:40:35 am »
I will say somthing in chinese, hope you can understand.

1. 抵押锚定的流动性很大的程度上来源于其杠杆特性及推广程度;
具体我们可以参见bitcny, 中国社区是bitcny最大与最活跃的用户群体, 中国社区前期的推广打下的基础带来的用户群使bitcny才有了良好的深度与流动性, 而其它抵押资产却完全无法与之相比, 即使是bitusd, 如果参与bitusd其中的中国资金一撤离, bitusd的深度与流动性立马见底.

所以: 杠杆特性虽然能够产生流动性,但是在推广没有到位之前, 起不了多大作用.

2. 希望能够所有BTS持有人能够理解BSIP74及BSIP77的意义所在。

MakerDAI的清算机制是存在问题的, 这个问题与BTS的MSSR一样,但是ETH在CEX良好的深度及流动性及ETH的转账速度把这个问题给掩盖住了,ETH在CEX良好的深度及流动性完全抵御住了makerdai清算人进行大量折价抛售ETH,转账的延迟性也掩饰了之一问题的严重性,如果makerdai锁定的ETH数量足够多,eth的转账速度足够快,到时候市场大幅度下调对makerdai清算机制带来的结果是致命性的,eth市场的连环崩塌并不是梦幻 ,到时候必然要触发MKR的增发机制及黑天鹅机制。

而BTS直接就已经把这个问题暴露得淋漓尽致,过大的MSSR大幅抹杀DEX内部市场深度与流动性,同时冲击CEX的市场价格,带来喂价的连环崩塌,再加上CEX的杠杆做空,一切就是这么发生的。

而我们推BSIP74的目的是为了什么?:
是为了最大程度的消除MSSR带来的影响,如果有暴仓费的手续费分享与线性解冻功能,我们也可以用此间接解决市场吃爆仓单的积极性与流动性问题,同时最大程度上规避直接使用MSSR抛售带来的负面效果,也就是最大程度上规避MakerDAI所存在的隐藏问题。

而BSIP77的目的是为了什么?:
也是为了一定程度上来消除MSSR带来的影响,我们做得是抵押锚定,不是做100倍的合约杠杆,价格在一定范围内的上下波动不应该爆来爆去的,同时也是为了一定程度上规避喂价带来的负面影响,防止利用CEX过低的深度及流动性,利用CEX做空杠杆打击喂价从而冲击抵押。
而且BSIP77还可以带来我们可能现在想不到的灵活性的调整。

而对于全局清算这个东西,其实是很傻的,一个人的债务违约不应当让这个银行的全体债务人被清算,合理的方式应当是把这个人的债务打包即时拍卖掉,实现债务拍卖市场。


I know it is very hard to understand what I'm saying, but i'm too lazy ;).

Online chigbolu

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Re: ANN: HONEST Market Pegged Assets
« Reply #3 on: January 21, 2020, 03:15:51 pm »
I will say somthing in chinese, hope you can understand.

1. 抵押锚定的流动性很大的程度上来源于其杠杆特性及推广程度;
具体我们可以参见bitcny, 中国社区是bitcny最大与最活跃的用户群体, 中国社区前期的推广打下的基础带来的用户群使bitcny才有了良好的深度与流动性, 而其它抵押资产却完全无法与之相比, 即使是bitusd, 如果参与bitusd其中的中国资金一撤离, bitusd的深度与流动性立马见底.

所以: 杠杆特性虽然能够产生流动性,但是在推广没有到位之前, 起不了多大作用.

2. 希望能够所有BTS持有人能够理解BSIP74及BSIP77的意义所在。

MakerDAI的清算机制是存在问题的, 这个问题与BTS的MSSR一样,但是ETH在CEX良好的深度及流动性及ETH的转账速度把这个问题给掩盖住了,ETH在CEX良好的深度及流动性完全抵御住了makerdai清算人进行大量折价抛售ETH,转账的延迟性也掩饰了之一问题的严重性,如果makerdai锁定的ETH数量足够多,eth的转账速度足够快,到时候市场大幅度下调对makerdai清算机制带来的结果是致命性的,eth市场的连环崩塌并不是梦幻 ,到时候必然要触发MKR的增发机制及黑天鹅机制。

而BTS直接就已经把这个问题暴露得淋漓尽致,过大的MSSR大幅抹杀DEX内部市场深度与流动性,同时冲击CEX的市场价格,带来喂价的连环崩塌,再加上CEX的杠杆做空,一切就是这么发生的。

而我们推BSIP74的目的是为了什么?:
是为了最大程度的消除MSSR带来的影响,如果有暴仓费的手续费分享与线性解冻功能,我们也可以用此间接解决市场吃爆仓单的积极性与流动性问题,同时最大程度上规避直接使用MSSR抛售带来的负面效果,也就是最大程度上规避MakerDAI所存在的隐藏问题。

而BSIP77的目的是为了什么?:
也是为了一定程度上来消除MSSR带来的影响,我们做得是抵押锚定,不是做100倍的合约杠杆,价格在一定范围内的上下波动不应该爆来爆去的,同时也是为了一定程度上规避喂价带来的负面影响,防止利用CEX过低的深度及流动性,利用CEX做空杠杆打击喂价从而冲击抵押。
而且BSIP77还可以带来我们可能现在想不到的灵活性的调整。

而对于全局清算这个东西,其实是很傻的,一个人的债务违约不应当让这个银行的全体债务人被清算,合理的方式应当是把这个人的债务打包即时拍卖掉,实现债务拍卖市场。


I know it is very hard to understand what I'm saying, but i'm too lazy ;).
The assets will follow the traditional MPA pattern of BTS if you don't like it you can move on no need to criticize...

Offline teiva

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Re: ANN: HONEST Market Pegged Assets
« Reply #4 on: January 21, 2020, 10:49:04 pm »
Awesome initiative ! Long live HONEST MPAs

Offline binggo

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Re: ANN: HONEST Market Pegged Assets
« Reply #5 on: January 22, 2020, 12:22:56 am »

The assets will follow the traditional MPA pattern of BTS if you don't like it you can move on no need to criticize...

The traditional MPA pattern of BTS is just like a canser.

Offline litepresence

Re: ANN: HONEST Market Pegged Assets
« Reply #6 on: January 29, 2020, 06:50:30 pm »
ANN: HONEST.USD HONEST.BTC HONEST.XAU HONEST.XAG


USD, BTC, XAU, and XAG derivative MPA's are all live on mainnet.   The price feeds and reference rates coming soon.

Dust reference rates have been posted hourly for several days now on HONEST.CNY vs BTS, bitUSD, bitCNY and GDEX.BTC

We now have 4 feed producers live.  3 additional parties have committed to joining.
Code: [Select]
HONEST.CNY
=================================================
 ** ¥ ** CHINESE YUAN
=================================================
PRIVATE MARKET PEGGED ASSET
=================================================
A proprietary derivative tracking the HONEST market value of one Chinese Yuan 1:1.  Backed by BTS collateral held on the blockchain, in a smart contract.  We aim to provide HONEST, accurate, transparent, and timely median price feeds derived from data reported by reputable global institutions.  Short squeeze is minimally restricted to ensure the burden of malinvestment falls on the under collateralized party rather than all market participants.
=================================================
Learn more at: bitsharestalk.org/index.php?topic=32035

HONEST.CNY - CHINESE YUAN MPA

HONEST.USD
=================================================
 ** $ ** US DOLLAR
=================================================
PRIVATE MARKET PEGGED ASSET
=================================================
A proprietary derivative tracking the HONEST market value of one United States Dollar 1:1.  Backed by BTS collateral held on the blockchain, in a smart contract.  We aim to provide HONEST, accurate, transparent, and timely median price feeds derived from data reported by reputable global institutions.  Short squeeze is minimally restricted to ensure the burden of malinvestment falls on the under collateralized party rather than all market participants.
=================================================
Learn more at: bitsharestalk.org/index.php?topic=32035

HONEST.USD - US DOLLAR MPA


HONEST.BTC
=================================================
 ** ₿ ** BITCOIN
=================================================
PRIVATE MARKET PEGGED ASSET
=================================================
A proprietary derivative tracking the HONEST market value of one Bitcoin 1:1.  Backed by BTS collateral held on the blockchain, in a smart contract.  We aim to provide HONEST, accurate, transparent, and timely median price feeds derived from data reported by reputable global institutions.  Short squeeze is minimally restricted to ensure the burden of malinvestment falls on the under collateralized party rather than all market participants.
=================================================
Learn more at: bitsharestalk.org/index.php?topic=32035

HONEST.BTC - BITCOIN MPA

HONEST.XAU
=================================================
1 TROY OUNCE OF GOLD
=================================================
PRIVATE MARKET PEGGED ASSET
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A proprietary derivative tracking the HONEST market value of one 1 troy ounce of .999 percent fine Gold 1:1.  Backed by BTS collateral held on the blockchain, in a smart contract.  We aim to provide HONEST, accurate, transparent, and timely median price feeds derived from data reported by reputable global institutions.  Short squeeze is minimally restricted to ensure the burden of malinvestment falls on the under collateralized party rather than all market participants.
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Learn more at: bitsharestalk.org/index.php?topic=32035

HONEST.XAU - GOLD MPA

HONEST.XAG
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1 TROY OUNCE OF SILVER
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PRIVATE MARKET PEGGED ASSET
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A proprietary derivative tracking the HONEST market value of one 1 troy ounce of .999 percent fine Silver 1:1.  Backed by BTS collateral held on the blockchain, in a smart contract.  We aim to provide HONEST, accurate, transparent, and timely median price feeds derived from data reported by reputable global institutions.  Short squeeze is minimally restricted to ensure the burden of malinvestment falls on the under collateralized party rather than all market participants.
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Learn more at: bitsharestalk.org/index.php?topic=32035

HONEST.XAU - SILVER MPA

« Last Edit: February 03, 2020, 11:28:52 pm by litepresence »

Offline litepresence

Re: ANN: HONEST Market Pegged Assets
« Reply #7 on: February 02, 2020, 03:37:03 am »
You cannot use MSSR > MCR

Thanks for the feedback, and yes this issue has been discussed internally.

After consultation within our team we have agreed to reduce MSSR to 125 pending further review.  The decision was made to mitigate the possibility of MSSR>MCR causing blockchain related global default issues.   

For borrowers, this means the risk you are exposed to upon loan default has been reduced from 50% to only 20% below feed price.

We feel this is the middle path between ensuring quick liquidation of malinvestment and ensuring that the market cannot be forced into global settlement. 

We reserve the right to alter MSSR in the future, but we will not increase it more than 5 units weekly hereafter and will not alter it again until we have modeled the issue of global default thoroughly on testnet.

« Last Edit: February 03, 2020, 11:28:28 pm by litepresence »

Offline sahkan

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Re: ANN: HONEST Market Pegged Assets
« Reply #8 on: February 02, 2020, 05:19:27 am »
Been following your work for some time. I can support this. We definitely need to break away from price setting.

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Re: ANN: HONEST Market Pegged Assets
« Reply #9 on: February 03, 2020, 02:39:18 pm »
Here are just my own opinions.

* Private experiments are appreciated.

* Understand the Impossible Trinity, don't expect magic. https://en.wikipedia.org/wiki/Impossible_trinity


  - Monetary policy: all the rules defined in the blockchain and in the post **ARE** indeed components of the monetary policy, including price feed, borrowing, margin call, force settlement, the related parameters and incentives.
  - Fixed exchange rate: people would be able to exchange between one of the created assets (e.g. HONEST.USD) and another asset that is pegged to the target asset (e.g. [gateways].USDT) at around 1:1 almost all the time, aka the "peg" with liquidity;
  - Free capital flow: anyone can freely place orders onto the order book to exchange between one of the created assets (e.g. HONEST.USD) and another asset (e.g. [gateways].USDT) at any price, any volume, and any time.
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Offline litepresence

Re: ANN: HONEST Market Pegged Assets
« Reply #10 on: February 03, 2020, 05:52:49 pm »
  - Monetary policy: all the rules defined in the blockchain and in the post **ARE** indeed components of the monetary policy, including price feed, borrowing, margin call, force settlement, the related parameters and incentives.
  - Fixed exchange rate: people would be able to exchange between one of the created assets (e.g. HONEST.USD) and another asset that is pegged to the target asset (e.g. [gateways].USDT) at around 1:1 almost all the time, aka the "peg" with liquidity;
  - Free capital flow: anyone can freely place orders onto the order book to exchange between one of the created assets (e.g. HONEST.USD) and another asset (e.g. [gateways].USDT) at any price, any volume, and any time.

We operate under the assumption that markets should determine exchange rates, NOT state actors.  We as price feed operators have a duty to provide HONEST price feeds representative of live median global rates.   Given honest feeds, market participants have the greatest incentive to trust that borrowing of our MPA's can be a wise business venture and that the MPA will in the long run hold value relative to global pricing. 

Monetary policy can be either restrictive or permissive.   We choose permissive liquidation of mal investment wherever possible:

Whereas Bitassets have a highly restrictive MSSR of 101, we choose MSSR 125; as free as possible to induce liquidation of individual mal investment; without risking market meltdown from global force settlement.

Whereas Bitassets charge a restrictive "service fee" upon liquidation paid to the borrower:   Honest MPA's charge no service fee to encourage free and fair liquidation. 

Whereas Bitassets delay liquidation restrictively by up to 24 hours, Honest MPA's liquidate within 60 minutes upon default.   

Whereas Bitassets periodically peg MPA's to the underlying collateral asset to prevent liquidation of mal investment, we promise to never take such actions.

Whereas Bitassets have closed source pricing mechanisms.  Our pricefeed scripts are open source, our whitepaper is clear as to our intentions, and our live data matrix supplied by each of our feed producers is updated hourly at www.jsonbin.io

So, yes... there is of course monetary policy involved in Honest MPA's.   We like to believe ours is a niche offering in an entirely new direction.

« Last Edit: February 03, 2020, 11:28:14 pm by litepresence »

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Re: ANN: HONEST Market Pegged Assets
« Reply #11 on: February 04, 2020, 12:19:39 am »
  - Monetary policy: all the rules defined in the blockchain and in the post **ARE** indeed components of the monetary policy, including price feed, borrowing, margin call, force settlement, the related parameters and incentives.
  - Fixed exchange rate: people would be able to exchange between one of the created assets (e.g. HONEST.USD) and another asset that is pegged to the target asset (e.g. [gateways].USDT) at around 1:1 almost all the time, aka the "peg" with liquidity;
  - Free capital flow: anyone can freely place orders onto the order book to exchange between one of the created assets (e.g. HONEST.USD) and another asset (e.g. [gateways].USDT) at any price, any volume, and any time.

...

So, yes... there is of course monetary policy involved in Honest MPA's.   We like to believe ours is a niche offering in an entirely new direction.

Thanks for the explanation. I mean with the policies you defined it's likely that your products can't get "pegged well". Just my own opinion. I'm not going to participate in the experiment, nor going to argue with you which product is better since different products target different users.
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Offline litepresence

Re: ANN: HONEST Market Pegged Assets
« Reply #12 on: February 04, 2020, 01:50:41 am »
it's likely that your products can't get "pegged well".


« Last Edit: February 04, 2020, 11:19:56 pm by litepresence »

Offline dh

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Re: ANN: HONEST Market Pegged Assets
« Reply #13 on: February 08, 2020, 10:41:20 am »
Bitassets are "good" for borrowers because they made a protection rules for themselves. Oppositely, HONEST assets are advantageous for holders and "bad" for borrowers: high MSSR and quick force settle with 0% offset. I see no good reasons for borrowers to switch from less restrictive assets to more restrictive. What can incentivize borrowing of HONEST? Maybe BTS selling liquidity with meaningful discount.

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Re: ANN: HONEST Market Pegged Assets
« Reply #14 on: February 08, 2020, 01:33:08 pm »
Bitassets are "good" for borrowers because they made a protection rules for themselves. Oppositely, HONEST assets are advantageous for holders and "bad" for borrowers: high MSSR and quick force settle with 0% offset. I see no good reasons for borrowers to switch from less restrictive assets to more restrictive. What can incentivize borrowing of HONEST? Maybe BTS selling liquidity with meaningful discount.
"BTS selling liquidity with meaningful discount" essentially means "bitasset selling at a meaningful premium" which by itself impacts liquidity. It's not a new topic. We have been talking about it for a long time.
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