Author Topic: Bootstrapping a BitAsset  (Read 4420 times)

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Offline bytemaster

This is fairly close to where we are heading (if you look at my recent post, not sure who posted first :)

There are two options:
1) Encode the feed into the chain and use a median
2) Have a soft feed where delegates simply ignore transactions outside of range.

The first option is probably the most robust against an attack by a single delegate.  The second is possible today without any hard fork. 

I think I like your proposal Agent86... a 30% range of allowable orders works well and moves all attack vectors "off-chain", ie: if you can pump and dump BTSX causing a 50% fall in value.   Nothing we do on chain can prevent that except increasing margin requirements beyond what a pump & dump can do.
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Offline Agent86

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I want to suggest a different way it may be possible to bootstrap a BitAsset other than picking a minimum "market depth."  Perhaps it also adds some additional safeguard or confidence to the market.

Allow delegates to provide price feeds for BitAssets (hear me out).  A BitAsset must be supported by 50% of delegates via price feeds for 30days before trading starts.  The price feed does not determine price, only acts as a safeguard: orders outside the median price feed +- 30% are rejected.

A BitAsset must have high visibility to be supported by most delegates and the wait time gives people a chance to get ready to participate in the market.  We can also pull the plug before the 30day wait if it seems a real market has not developed.

Price feeds might sound antithetical to the BitAsset idea, but keep in mind the market still functions in the same way as proposed.  The feed doesn’t determine price and if things work like we want over time the price feed would seem unnecessary.  It's more of a safeguard/redundancy protection against manipulation in thin markets.

The price feed is also decentralized: no single delegate can manipulate it and delegates can be removed by shareholders.