Author Topic: 2020-10-11 Old bitCNY parameters adjustment  (Read 153 times)

0 Members and 1 Guest are viewing this topic.

Offline abit

  • Committee member
  • Hero Member
  • *
  • Posts: 4511
    • View Profile
    • Abit's Hive Blog
  • BitShares: abit
  • GitHub: abitmore
2020-10-11 Old bitCNY parameters adjustment
« on: October 11, 2020, 09:22:29 am »
Purpose:
to restore the peg of bitCNY in the long run and mitigate the issue that some debt positions' collateral is too low.

Changes:
ICR has been increased from 275% to 295%;
MCR has been increased from 175% to 180%, later increased to 185%;
MCFR has been increased from 5% to 6%;
Maximum supply has been reduced from 35,000,000 to 28,000,000.

Current parameters:

ICR 295%
MCR 185%
MSSR 150%
MCFR (Margin call fee rate) 6%
FSO (Force settlement price offset) 2%
FSFP (Force settlement fee percent) 1%

The median feed price is 0.22 CNY/BTS.

Borrowing has been enabled earlier. The maximum supply is limited to 28,000,000 bitCNY.


Note:

* the ICR value 295% for feed price 0.22 effectively means 174% for market price 0.13, and the corresponding black swan price is 0.075.

* the MCR value 185% for feed price 0.22 effectively means 109% for market price 0.13, and the corresponding black swan price is 0.119.

* the MSSR value 150% for feed price 0.22 means collateral of low-CR debt positions will be listed for sale at 0.22 / 150% = 0.1467 bitCNY
** the MCFR value 6% means the price for buyers' is 0.22 / (150%-6%) = 0.1528 bitCNY
« Last Edit: October 11, 2020, 09:50:16 pm by abit »
BTS account: abit
BTS committee member: abit
BTS witness: in.abit

Offline abit

  • Committee member
  • Hero Member
  • *
  • Posts: 4511
    • View Profile
    • Abit's Hive Blog
  • BitShares: abit
  • GitHub: abitmore
Re: 2020-10-11 Old bitCNY parameters adjustment
« Reply #1 on: October 11, 2020, 09:27:54 pm »
MCR increased from 180% to 185%.
BTS account: abit
BTS committee member: abit
BTS witness: in.abit