BitShares desperately needs a base supply of BitUSD and BitCNY to help liquidity.
This crash proves to me that we need a base supply of both BitUSD and BitCNY.
If whales like @bitcrab need to exit their positions we need more BitUSD and BitCNY in the system.
We need a massive dedicated account used exclusively for creating BitUSD and BitCNY.
This account should have all of its BTS as collateral at all times and hold no other assets.
It should be funded by a rolling worker proposal.
The BitUSD and BitCNY created would be used to purchase any BTS below the settlement price.
The BTS purchased would just get added to the collateral.
The account would never pay back its borrowed BitUSD and BitCNY because that would destroy the supply.
I really think this is needed for BitShares to be successful.
I have also posted this on the bitsharestalk forum: https://bitsharestalk.org/index.php/topic,24994.msg310914.html#msg310914
I agree completely - Bitshares should take $20M from the reserve fund and create $10M bitUSD and $10M bitCNY ... right now
The trouble is the protocol is not designed for us to just take a chunk of reserve pool money.
The best we can do is max out a worker proposal which is limited by a daily rate and use that.
I agree.
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STOPI'm not sure how I feel about this proposed solution. I'm going to have to take time to think about it before I take a stance on it. I hope you will show the same consideration for ideas on the matter.
Question: If I use my Bitshares to create BitUSD and then the price of Bitshares goes up three or four times, what happens?
Also, how to I go about creating bitUSD? Is it the "Borrow USD" (Margin USD) option in the Exchange?
I'm really liking Bitshares and I am enjoying learning more about it's advanced features.
It depends what became of the bitUSD you borrowed. Did you sell it on the exchange, did you buy more BTS with it, or did you spend it on pizza?
I bought more Bitshares.
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STOP