Author Topic: 2020-11-17 Old bitCNY parameters adjustment (seminormal price feeds)  (Read 141 times)

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Offline abit

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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 (Initial collateral ratio) adjusted from 330% to 180%
MCR (Maintenance collateral ratio) adjusted from 290% to 160%
MSSR (Maximum short-squeeze ratio) adjusted from 190% to 105%
MCFR (Margin call fee rate) adjusted from 7% to 3%
FSFP (Force settlement fee percent) adjusted from 1% to 3%
Price feed threshold adjusted from 0.22 CNY/BTS to 0.12 (temporary)
Price feed producers list: in.abit only (temporary)
Minimum feeds adjusted from 7 to 1 (temporary)

Current parameters:

ICR (Initial collateral ratio) 180%
MCR (Maintenance collateral ratio) 160%
MSSR (Maximum short-squeeze ratio) 105%
MCFR (Margin call fee rate) 3%
FSFP (Force settlement fee percent) 3%
FSO (Force settlement price offset) 2%
Force settlement delay 24 hour
Maximum force settlement volume per hour 0.5%
Price feed threshold 0.12 CNY/BTS (temporary)
Price feed producers list: in.abit only (temporary)
Minimum feeds 1

Borrowing is enabled. The maximum supply is limited to 20,000,000 bitCNY.


Note:

* As of writing, market trading price of BTS on CEXs is around 0.123 CNY, the collateral ratio (CR) of the debt position with the lowest CR in the BitShares DEX is 161%, the corresponding black swan price is 0.076 CNY.


Here is a summary to in.abit's price feed script:

* update up to 12 times per hour, at random intervals; no update if price change is less than 0.1%
* main data source is Binance and Huobi, with low-weight adjustments from AEX, Bittrex and BitShares DEX
* black swan protection is enabled
* price threshold is 0.12

Risks related to price feeds (market participants please be aware):
* due to the low weight of direct CNY market, the final price need to be derived from BTC and USDT markets, so the price may be a bit off
* due to potential technical issues, update of price may be delayed for a short or long time
BTS account: abit
BTS committee member: abit
BTS witness: in.abit