Topic: BitShares Loves Puppies - page 10. (Read 23219 times)

One of the things about BitShares that most excites me is how many other businesses, world-wide, are starting to develop products and services for it.

Here's a one minute proposal to the decentralized BitShares community for Bitsapphier's new Moonstone wallet - just to show you what I mean!

Someone asked why they should own bitAssets instead of the real assets they are pegged to.

Fair question.

If the S&P was going up relative to BTS, then the issuer of the asset would be losing money over time (which you would expect, they have shorted it!).  This means they would lose BTS.  When they were forced to cover their position after 30 days, they would not be able to reshort as much BTS500 next time.  If they have some extra BTS laying around, they are free to remain in the short position as long as they can afford to, by adding more collateral.

If the S&P went down relative to BTS, they would make money.  When they covered they would end up with more BTS than they started.

If you buy a bitAsset you can hold onto it forever if you want.

If you create a bitAsset (by 'shorting' it into existence, and providing some of your BTS as collateral), then you are forced to buy back that bitAsset within 30 days, OR if your collateral gets too low.

What is the point of this? 
It gives every bitAsset holder a guarantee that within a 30 day period, someone is going to need to buy the asset back, which means that you are able to sell your asset if you want.


One option for the 'short' to cover their position is to 'buy it from yourself', by shorting a new version of the bitAsset and selling it to yourself to cover your old asset.  This is kindof like rolling over a futures contract for a commodity, into the next period.  When you do this, you have to put in an order at the feed price (the 'fair price' of the asset).  This means that anyone else out there could offer a better price than this, and then you would have to sell to them instead. 

Usually, there is a small spread of bitassets.  For example, people are willing to sell a bitUSD for $1.005, or buy it for $.995 (worth of BTS) or something like that.  If someone puts in an order saying "I am willing to sell for $.999", which is below the feed price of $1, then within that 30 day period, when the shot needs to cover, they have to buy from that person first, before they can short a new asset to themself. 

If no one is willing to sell for a better price than the feed, then the short is free to roll over their position for a new 30 days.

This system ensures:
* Some buying power will exist every 30 days, for all of the bitAssets in existence.  This guarantees you can get out at a fair price by waiting a max of 30 days.
* The creator of the bitAsset (who shorted it) doesnt get screwed over when they have to cover their short.  If no one is willing to sell to them at a fair price, they can sell to themself.

For posting a puppy picture you automatically qualify for one free deluxe question!

BitShares does auto margin calls under 2 conditions:
1.  If the value of the BTS collateral falls from 3x down to 2x.
2.  At the end of thirty days.

You can avoid this by adding more margin or reset back to 3x and 30 days by closing out one position and reentering a new one.

This does not affect the holders of the BitAsset, who can hold them forever if they choose.

One question: essentially, the issuers of a Bitshares asset short it on 200% margin; I got that part. But, are the lifetimes of the assets limited? Are they automatically redeemed in BTS after X days, or is their lifetime forever?

This question popped up in my head as I was having a not-so-pleasant dream about issuing a hypothetical asset tied to the S&P 500 - call it BTS500 - and essentially "selling America short." This would not lead to a Black Swan event, but it would lead to someone sitting on a growing responsibility for more margin over time. How would that work for an issuer? Can he or she add more margin as time goes on, as you can for a regular stock-market account?  

Oh, right:

I just added this to the info section - second post at the top of this thread...

Oh, and by the way, BitShares stakeholders have finally sorted out how they are going to handle release of public statements in a way that seemed to satisfy most folks.

Bottom line, our self-imposed muzzle is off!  Read all about it in our March Newsletter.

To restore balance to the force I include a picture of 101 BitShares puppies.
You can only make out one of them from this extreme range because the rest are decentralized.

They are very cute, but that's just a disguise.

(And you must admit, they are incredibly centralized in that picture.)

Far too many cats per square mile, if you ask me.

We need some kittens.....



There, all sorted.

I just read the newsletter.  Wow, apparently there are 10x as many things going on in Bitshares as I thought there were.  I had no idea most of these projects even existed.

This activity should be the counterevidence to DecentralizedEconomics claims that Bitshares is a scam.  Might be time to buy more now that the price is low again and there seems to be a lot going on.

29 pages and 0 pics of puppies. This is bad. Very very bad.

Hey guys!  There is no better way to find out what's going on in BitShares than to check out the March Newsletter.

This newsletter is unique because it is written by the delegates themselves (developers, marketeers, and service providers). 
Each of these small businesses reports on what it is doing with their funding - which gives you an overview of the whole ecosystem.
I was amazed at the scope of projects that are now going on, with more appearing almost weekly.

(Bytemaster and I have to read the newsletter ourselves these days to find out everything that is happening.)

So our goal of a completely decentralized ecosystem is becoming more of a reality every day!

 

As long as no puppies were hurt, we wish them well.

http://www.reddit.com/r/counterparty_xcp/comments/2y0apx/contract_news/

Any reaction to that (I don't believe that any puppies were hurt btw) ?

If you have a good idea, might as well contact him about it...