BitUSD Yield (aka Interest) Scheduled for Launch Wednesday

[Method-X]

Than in true open source style it could be a "DAN" = "Decentralized Autonomous DAN"

Decentralized Autonomous Network

[Riverhead]

Than in true open source style it could be a "DAN" = "Decentralized Autonomous DAN"

[liondani]

Why use floats when everything can be broken down to satoshis larimers;-)

 

I am sure we get easy to consensus as a community about "larimer's"   

Why not "dan" ?

I like "dan". It's already three letters like most currencies. Decentralized Atomic Notation?

http://en.wikipedia.org/wiki/Dan_(rank)

[Riverhead]

Why use floats when everything can be broken down to satoshis larimers;-)

 

I am sure we get easy to consensus as a community about "larimer's"   

Why not "dan" ?

I like "dan". It's already three letters like most currencies. Decentralized Atomic Notation?

[emski]

Why use floats when everything can be broken down to satoshis larimers;-)

 

I am sure we get easy to consensus as a community about "larimer's"   

Why not "dan" ?

[liondani]

Why use floats when everything can be broken down to satoshis larimers;-)

 

I am sure we get easy to consensus as a community about "larimer's"   

[xeroc]

Why use floats when everything can be broken down to satoshis larimers ;-)

[bytemaster]

In this scheme, the interest computation doesn't do compounding.  So users will have an incentive to spam the network with transactions compounding manually.

For example, suppose Alice has 1000 BitUSD, the current yield is 10% and Alice expects rate of network income to remain the same.

Then Alice can wait to the end of the year and get 100 BitUSD in one interest-claiming transaction.  Or Alice can claim interest in six months, increasing her balance to 1050 BitUSD, then in six more months, claim interest on that 1050 BitUSD balance which brings her to 1102.50.  The extra 2.50 BitUSD Alice extracts far exceeds the transaction fee.  Finding the optimum timing of interest claims is left as an exercise to the reader.

We can fix this relatively easily.  Let r = TOTAL_ACCUMULATED_FEES / (BIT_ASSET_SUPPLY - TOTAL_ACCUMULATED_FEES), then the interest should be ACCOUNT_BALANCE * pow(r, PERCENT_OF_YEAR_HELD).

My formula takes compounding into account, so Alice can no longer extract a risk-free profit with the above strategy (the result of claiming interest twice in a year is a balance approximately one tx fee less than the result of claiming interest once in a year.)

If you have an easy way to implement that with 128 bit integer math....

For most people making regular transactions anyway it won't matter. Those that are using cold storage will have to balance the effort with the rewards.

Why 128 bit integer math? Just for speed?

No, we cannot use floating point because it is not deterministic. 

[bytemaster]

I think interest is great.  However,  since that it takes a year to maximize my yield,  I would like to have a command that shows the distribution of coinage in specified account.  For example:

Code: [Select]

>>coinage <account>
And it may returns something like:

Code: [Select]

1. Coinage of 50% of balance is 0.9 year
2. Coinage of 30% of balance is 0.5 year
3. Coinage of 20% of balance is 0.1 year
So I know I can use the 20% without interfering the interest of the other 80% to maximize,  assuming the wallet will automatically choose the 'youngest' BitUSD to spend.

It doesn't take a year to maximize. It is all linear. You just stop earning a yield after a year and actually pay a 5% inactivity fee.

[jernau]

In this scheme, the interest computation doesn't do compounding.  So users will have an incentive to spam the network with transactions compounding manually.

For example, suppose Alice has 1000 BitUSD, the current yield is 10% and Alice expects rate of network income to remain the same.

Then Alice can wait to the end of the year and get 100 BitUSD in one interest-claiming transaction.  Or Alice can claim interest in six months, increasing her balance to 1050 BitUSD, then in six more months, claim interest on that 1050 BitUSD balance which brings her to 1102.50.  The extra 2.50 BitUSD Alice extracts far exceeds the transaction fee.  Finding the optimum timing of interest claims is left as an exercise to the reader.

We can fix this relatively easily.  Let r = TOTAL_ACCUMULATED_FEES / (BIT_ASSET_SUPPLY - TOTAL_ACCUMULATED_FEES), then the interest should be ACCOUNT_BALANCE * pow(r, PERCENT_OF_YEAR_HELD).

My formula takes compounding into account, so Alice can no longer extract a risk-free profit with the above strategy (the result of claiming interest twice in a year is a balance approximately one tx fee less than the result of claiming interest once in a year.)

If you have an easy way to implement that with 128 bit integer math....

For most people making regular transactions anyway it won't matter. Those that are using cold storage will have to balance the effort with the rewards.

Why 128 bit integer math? Just for speed?

[eagleeye]

(To the development company) Main marketing team I hope your ready.

(To us the public) It will be time to spread the infographics that have been made (Press/Marketing sections you can find them).
Furthermore, use facebook and etc.

Someone link this in the General Forum.

  2 Infographics found here https://bitsharestalk.org/index.php?topic=8202.0

Does anyone know where any other infographics are on the marketing/press forum.

[jsidhu]

Kewl so we should get a bump up in price as bitUSD longs become more liquid!

[bitcoinerS]

Market orders to not pay a yield at this time.

They probably should, otherwise it will discourage people from participating in the market, reducing available liquidity.

[checkrasier]

ok so I have some bitUSD all ready.
What do I need to do to collect the interest and how often is it calculated?

I want to know this too. I already have bitUSD and bitBTC which I bought well above the current btsx price. So I plan on holding on to them for the interest. Do we need to do anything to start gaining the returns on Wednesday, or do the returns only apply to people who acquire their bitAssets on Wednesday or later?

as i understand just put it in your account and don't place an order at the market.

@bytemaster
please consider to count bitUSD in market order for the yield as well. without that everyone will hord and not trade bitUSD.

Placing your bitUSD in market means you don't want to keep these bitUSD anymore, then why you still get interest? Interest encourages every hold bitUSD.

It means you are willing to buy or sell at a higher price than the current ask or bid.  Not having interest for funds that are part of market orders seems to discourage trading, hurt liquidity and the widen the spread. 

Am I missing something?

[麥可貓]

I think interest is great.  However,  since that it takes a year to maximize my yield,  I would like to have a command that shows the distribution of coinage in specified account.  For example:

Code: [Select]

>>coinage <account>
And it may returns something like:

Code: [Select]

1. Coinage of 50% of balance is 0.9 year
2. Coinage of 30% of balance is 0.5 year
3. Coinage of 20% of balance is 0.1 year
So I know I can use the 20% without interfering the interest of the other 80% to maximize,  assuming the wallet will automatically choose the 'youngest' BitUSD to spend.