Author Topic: 2020-10-21 Old bitCNY parameters adjustment  (Read 137 times)

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Offline abit

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2020-10-21 Old bitCNY parameters adjustment
« on: October 21, 2020, 10:59:18 am »
Purpose:
to restore the peg of bitCNY in the long run and mitigate the issue that some debt positions' collateral ratio is too low.

Changes:
ICR has been adjusted from 295% to 315%
Maximum supply has been adjusted from 28,000,000 to 25,000,000

Current parameters:

ICR (Initial collateral ratio) 315%
MCR (Maintenance collateral ratio) 195%
MSSR (Maximum short-squeeze ratio) 151%
MCFR (Margin call fee rate) 8%
FSO (Force settlement price offset) 2%
FSFP (Force settlement fee percent) 1%

The median feed price is 0.22 CNY/BTS.

Borrowing is enabled. The maximum supply is limited to 25,000,000 bitCNY.


Note:

* As of writing, market trading price of BTS on CEXs is around 0.122 CNY, the collateral ratio (CR) of the debt position with the lowest CR in the BitShares DEX is 103.7%, the corresponding black swan price is 0.119 CNY.

* the ICR value 315% for feed price 0.22 effectively means 174% for market price 0.122, and the corresponding black swan price is 0.070:
0.22 / 315% = 0.122 / 174% = 0.070

* the MCR value 195% for feed price 0.22 effectively means 108% for market price 0.122, and the corresponding black swan price is 0.113:
0.22 / 195% = 0.122 / 108% = 0.113

* the MSSR value 151% for feed price 0.22 means collateral of low-CR debt positions will be listed for sale at 0.22 / 151% = 0.1457 bitCNY
** the MCFR value 8% means the price for buyers' is 0.22 / (151%-8%) = 0.15385 bitCNY
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