Author Topic: ANN: HONEST Market Pegged Assets  (Read 7072 times)

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Offline bench

All five HONEST MPA's have had "permissions" updated; H.XAG, H.XAU, H.BTC, H.USD are all now setup like H.CNY, meaning:

NO OWNER PERMISSIONS EXCEPT "MARKET FEE"

Apologies for the delay, we were discussing each of these internally; once you give them up they're gone forever.

Yeah, this makes the HONEST.Assets even a bit more honest.
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Offline litepresence

All five HONEST MPA's have had "permissions" updated; H.XAG, H.XAU, H.BTC, H.USD are all now setup like H.CNY, meaning:

NO OWNER PERMISSIONS EXCEPT "MARKET FEE"

Apologies for the delay, we were discussing each of these internally; once you give them up they're gone forever.

Offline abit

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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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Offline dh

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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.

Offline litepresence

it's likely that your products can't get "pegged well".


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

Offline abit

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  - 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

  - 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 »

Offline abit

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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 sahkan

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Been following your work for some time. I can support this. We definitely need to break away from price setting.

Offline litepresence

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 litepresence

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
=================================================
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.
=================================================
Learn more at: bitsharestalk.org/index.php?topic=32035

HONEST.XAU - GOLD MPA

HONEST.XAG
=================================================
1 TROY OUNCE OF SILVER
=================================================
PRIVATE MARKET PEGGED ASSET
=================================================
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.
=================================================
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 binggo

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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 teiva

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Awesome initiative ! Long live HONEST MPAs

Offline chigbolu

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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 binggo

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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 ;).