From d7b4c1346252006582007eab04263e1905f6734e Mon Sep 17 00:00:00 2001 From: bitcrab Date: Thu, 27 Feb 2020 01:17:46 +0800 Subject: [PATCH 01/11] Create bsip-0087.md --- bsip-0087.md | 36 ++++++++++++++++++++++++++++++++++++ 1 file changed, 36 insertions(+) create mode 100644 bsip-0087.md diff --git a/bsip-0087.md b/bsip-0087.md new file mode 100644 index 0000000..221703e --- /dev/null +++ b/bsip-0087.md @@ -0,0 +1,36 @@ + BSIP: 0087 + Title: Force Settlement Fee Ratio + Authors: + Jerry Liu bitcrab@qq.com + Status: Draft + Type: Protocol + Created: 2020-02-23 + Discussion: https://github.com/bitshares/bsips/issues/260 + Worker: TBD + +# Abstract +This BSIP provide a solution to charge fee from force settlement. + +# Motivation +Force settlement is an important part in smartcoin design, it provides the power to smartcoin holders to ask for collaterals with reference to feed price, and then guarantees the peg of smartcoin. + +The community continuously optimize the rules of smartcoin to balance the interests of relevant parties, taking bitCNY as an example, at the beginning the rules focus more on smart coin peg but care less on debt position owners’ interests, change are done to give debt position owners more protection, the force settlement offset has been changed from 0 to 2%, the max settlement volume per maintenance period has been changed from no limit to 0.5% of smartcoin supply. + +In the past several weeks, force settlement happened more intensively than before, the background is that the crypto market seemly switched from bear to bull, and BTS price went above 0.22CNY - which is the voted threshold per BSIP76, at some time the frequently happened force settlements made the lowest debt position collateral ratio even higher than 3, this phenomenon triggered warm discussion, almost all the users agree that the settler need to pay more cost while executing force settlement, and the cost will be paid to system as fee. + +# Rationale +Force settlement fee can be seen as to pay part of the cost for smartcoin supply, stabilization and also the liquidation of collaterals, it is irrelevant to market fee sharing. +To ensure the debt positions can always be closed with suffcient smartcoin, it is more feasible to cut off part of the traded collaterals as fee, instead of smartcoin. + +# Specification +Add one new parameter Force Settlement Fee Ratio(FSFR) for each smartcoin, which is controlled by the smartcoin owner. +`Force settlement order price = settlement price*(1+FSO)/(1-FSFR)` + +Here settlement price = feed price. + +FSO is Force Settlement Offset. + +When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSFR)/[settlement price*(1+FSO)]`, the settled debt position owner sells collaterals in quantity `X/[settlement price*(1+FSO)]` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFR/[settlement price*(1+FSO)]` will be paid to the owner of the smartcoin as force settlement fee. + +# Copyright +This document is placed in the public domain. From 0ba83566b44393269b46703d5481086f1bffbb25 Mon Sep 17 00:00:00 2001 From: bitcrab Date: Fri, 28 Feb 2020 23:59:23 +0800 Subject: [PATCH 02/11] Update bsip-0087.md --- bsip-0087.md | 10 ++++------ 1 file changed, 4 insertions(+), 6 deletions(-) diff --git a/bsip-0087.md b/bsip-0087.md index 221703e..5a7e2ce 100644 --- a/bsip-0087.md +++ b/bsip-0087.md @@ -12,7 +12,7 @@ This BSIP provide a solution to charge fee from force settlement. # Motivation -Force settlement is an important part in smartcoin design, it provides the power to smartcoin holders to ask for collaterals with reference to feed price, and then guarantees the peg of smartcoin. +Force settlement is an important part in smartcoin design, it provides the power to smartcoin holders to ask for collaterals with reference to feed price, and then strengthens the peg of smartcoin. The community continuously optimize the rules of smartcoin to balance the interests of relevant parties, taking bitCNY as an example, at the beginning the rules focus more on smart coin peg but care less on debt position owners’ interests, change are done to give debt position owners more protection, the force settlement offset has been changed from 0 to 2%, the max settlement volume per maintenance period has been changed from no limit to 0.5% of smartcoin supply. @@ -23,14 +23,12 @@ Force settlement fee can be seen as to pay part of the cost for smartcoin supply To ensure the debt positions can always be closed with suffcient smartcoin, it is more feasible to cut off part of the traded collaterals as fee, instead of smartcoin. # Specification -Add one new parameter Force Settlement Fee Ratio(FSFR) for each smartcoin, which is controlled by the smartcoin owner. -`Force settlement order price = settlement price*(1+FSO)/(1-FSFR)` - -Here settlement price = feed price. +Add one new parameter Force Settlement Fee Percentage(FSFP) for each smartcoin, which is controlled by the smartcoin owner. +`Force settlement order price = feed price*(1+FSO)/(1-FSFP)` FSO is Force Settlement Offset. -When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSFR)/[settlement price*(1+FSO)]`, the settled debt position owner sells collaterals in quantity `X/[settlement price*(1+FSO)]` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFR/[settlement price*(1+FSO)]` will be paid to the owner of the smartcoin as force settlement fee. +When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSFP)/[settlement price*(1+FSO)]`, the settled debt position owner sells collaterals in quantity `X/[settlement price*(1+FSO)]` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFP/[settlement price*(1+FSO)]` will be paid to the owner of the smartcoin as force settlement fee. # Copyright This document is placed in the public domain. From 52ab64b1b813d7c6842bbb23f654163111565570 Mon Sep 17 00:00:00 2001 From: bitcrab Date: Sat, 29 Feb 2020 00:12:00 +0800 Subject: [PATCH 03/11] Update bsip-0087.md --- bsip-0087.md | 3 ++- 1 file changed, 2 insertions(+), 1 deletion(-) diff --git a/bsip-0087.md b/bsip-0087.md index 5a7e2ce..aa4ef90 100644 --- a/bsip-0087.md +++ b/bsip-0087.md @@ -24,11 +24,12 @@ To ensure the debt positions can always be closed with suffcient smartcoin, it i # Specification Add one new parameter Force Settlement Fee Percentage(FSFP) for each smartcoin, which is controlled by the smartcoin owner. -`Force settlement order price = feed price*(1+FSO)/(1-FSFP)` FSO is Force Settlement Offset. When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSFP)/[settlement price*(1+FSO)]`, the settled debt position owner sells collaterals in quantity `X/[settlement price*(1+FSO)]` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFP/[settlement price*(1+FSO)]` will be paid to the owner of the smartcoin as force settlement fee. +In this scenario, `force settlement order price = feed price*(1+FSO)` is the price to the settled debt position owners(maker). + # Copyright This document is placed in the public domain. From 0609975aff68f121181901e5fe34c498d97ffd06 Mon Sep 17 00:00:00 2001 From: bitcrab Date: Tue, 3 Mar 2020 15:13:22 +0800 Subject: [PATCH 04/11] Update bsip-0087.md add requested change --- bsip-0087.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/bsip-0087.md b/bsip-0087.md index aa4ef90..718d948 100644 --- a/bsip-0087.md +++ b/bsip-0087.md @@ -27,7 +27,7 @@ Add one new parameter Force Settlement Fee Percentage(FSFP) for each smartcoin, FSO is Force Settlement Offset. -When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSFP)/[settlement price*(1+FSO)]`, the settled debt position owner sells collaterals in quantity `X/[settlement price*(1+FSO)]` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFP/[settlement price*(1+FSO)]` will be paid to the owner of the smartcoin as force settlement fee. +When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSFP)/[feed price price*(1+FSO)]`, the settled debt position owner sells collaterals in quantity `X/[feed price*(1+FSO)]` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFP/[feed price*(1+FSO)]` will be paid to the owner of the smartcoin as force settlement fee. In this scenario, `force settlement order price = feed price*(1+FSO)` is the price to the settled debt position owners(maker). From 63f30d2577214b190599877ce2a909a8680edfcc Mon Sep 17 00:00:00 2001 From: bitcrab Date: Fri, 6 Mar 2020 00:46:07 +0800 Subject: [PATCH 05/11] Update bsip-0087.md review update --- bsip-0087.md | 8 +++++++- 1 file changed, 7 insertions(+), 1 deletion(-) diff --git a/bsip-0087.md b/bsip-0087.md index 718d948..ab7d7c8 100644 --- a/bsip-0087.md +++ b/bsip-0087.md @@ -14,10 +14,16 @@ This BSIP provide a solution to charge fee from force settlement. # Motivation Force settlement is an important part in smartcoin design, it provides the power to smartcoin holders to ask for collaterals with reference to feed price, and then strengthens the peg of smartcoin. -The community continuously optimize the rules of smartcoin to balance the interests of relevant parties, taking bitCNY as an example, at the beginning the rules focus more on smart coin peg but care less on debt position owners’ interests, change are done to give debt position owners more protection, the force settlement offset has been changed from 0 to 2%, the max settlement volume per maintenance period has been changed from no limit to 0.5% of smartcoin supply. +The community continuously optimize the rules of smartcoin to balance the interests of relevant parties, taking bitCNY as an example, at the beginning the rules focus more on smartcoin peg but care less on debt position owners’ interests, change are done to give debt position owners more protection, the force settlement offset has been changed from 0 to 2%, the max settlement volume per maintenance period has been changed from no limit to 0.5% of smartcoin supply. + +In the bull market at 2017, thanks to the help of magicwallet, bitCNY has played an important role in connecting CNY fiat and BTS-DEX, some projects selected BTS-DEX as the platform for token trading and bitCNY as the base currency. Things chanegd after implementation of BSIP76 and BAIP2, as these 2 proposals focus more on resisting shorting attack at the cost of lessening the peg, the difficult choice is made by community at the moment that shorting attack may lead BTS price to zero, after that bitCNY is more a trading asset/derivative in BTS-DEX than a stablecoin, it will still play a great role in leveraging and risk controlling in BTS ecosystem, however it will not be an always exactly pegged stablecoin. + +At the same time, BTS community continuously review the strategy, one strong consensus is that the system need to charge more fee at the suitable transactions to increase system income to pay public expenditures and buy back BTS. BSIP74, BSIP86 all come out at this background, it is also necessary to provide the possibility to charge from force settlement. In the past several weeks, force settlement happened more intensively than before, the background is that the crypto market seemly switched from bear to bull, and BTS price went above 0.22CNY - which is the voted threshold per BSIP76, at some time the frequently happened force settlements made the lowest debt position collateral ratio even higher than 3, this phenomenon triggered warm discussion, almost all the users agree that the settler need to pay more cost while executing force settlement, and the cost will be paid to system as fee. +Surely this BSIP just provide the tool to charge from froce settlement. whether the charge will go alive depends on the decision of the smartcoin owner. + # Rationale Force settlement fee can be seen as to pay part of the cost for smartcoin supply, stabilization and also the liquidation of collaterals, it is irrelevant to market fee sharing. To ensure the debt positions can always be closed with suffcient smartcoin, it is more feasible to cut off part of the traded collaterals as fee, instead of smartcoin. From be02cc8543260b66e001747be4450cb59724786b Mon Sep 17 00:00:00 2001 From: bitcrab Date: Tue, 10 Mar 2020 15:55:21 +0800 Subject: [PATCH 06/11] Update bsip-0087.md miner modification. --- bsip-0087.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/bsip-0087.md b/bsip-0087.md index ab7d7c8..7166eb1 100644 --- a/bsip-0087.md +++ b/bsip-0087.md @@ -1,5 +1,5 @@ BSIP: 0087 - Title: Force Settlement Fee Ratio + Title: Force Settlement Fee Authors: Jerry Liu bitcrab@qq.com Status: Draft @@ -35,7 +35,7 @@ FSO is Force Settlement Offset. When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSFP)/[feed price price*(1+FSO)]`, the settled debt position owner sells collaterals in quantity `X/[feed price*(1+FSO)]` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFP/[feed price*(1+FSO)]` will be paid to the owner of the smartcoin as force settlement fee. -In this scenario, `force settlement order price = feed price*(1+FSO)` is the price to the settled debt position owners(maker). +In this scenario, `force settlement order price = feed price*(1+FSO)` is the price to the settled debt position owners(maker). and the force settlement fee is calculated out based on this order price and FSFP. # Copyright This document is placed in the public domain. From a800b2ed14a529e213581628ef23b7655014cd58 Mon Sep 17 00:00:00 2001 From: bitcrab Date: Wed, 11 Mar 2020 15:50:52 +0800 Subject: [PATCH 07/11] Update bsip-0087.md Update Specification --- bsip-0087.md | 8 ++++---- 1 file changed, 4 insertions(+), 4 deletions(-) diff --git a/bsip-0087.md b/bsip-0087.md index 7166eb1..b49a65a 100644 --- a/bsip-0087.md +++ b/bsip-0087.md @@ -16,7 +16,7 @@ Force settlement is an important part in smartcoin design, it provides the power The community continuously optimize the rules of smartcoin to balance the interests of relevant parties, taking bitCNY as an example, at the beginning the rules focus more on smartcoin peg but care less on debt position owners’ interests, change are done to give debt position owners more protection, the force settlement offset has been changed from 0 to 2%, the max settlement volume per maintenance period has been changed from no limit to 0.5% of smartcoin supply. -In the bull market at 2017, thanks to the help of magicwallet, bitCNY has played an important role in connecting CNY fiat and BTS-DEX, some projects selected BTS-DEX as the platform for token trading and bitCNY as the base currency. Things chanegd after implementation of BSIP76 and BAIP2, as these 2 proposals focus more on resisting shorting attack at the cost of lessening the peg, the difficult choice is made by community at the moment that shorting attack may lead BTS price to zero, after that bitCNY is more a trading asset/derivative in BTS-DEX than a stablecoin, it will still play a great role in leveraging and risk controlling in BTS ecosystem, however it will not be an always exactly pegged stablecoin. +In the bull market at 2017, thanks to the help of magicwallet, bitCNY has played an important role in connecting CNY fiat and BTS-DEX, some projects selected BTS-DEX as the platform for token trading and bitCNY as the base currency. Things chanegd after implementation of BSIP76 and BAIP2, as these 2 proposals focus more on resisting shorting attack to BTS at the cost of lessening the peg, the difficult choice is made by community at the moment that shorting attack may lead BTS price to zero, after that bitCNY is more a trading asset/derivative in BTS-DEX than a stablecoin, it will still play a great role in leveraging and risk controlling in BTS ecosystem, however it will not be an always exactly pegged stablecoin. At the same time, BTS community continuously review the strategy, one strong consensus is that the system need to charge more fee at the suitable transactions to increase system income to pay public expenditures and buy back BTS. BSIP74, BSIP86 all come out at this background, it is also necessary to provide the possibility to charge from force settlement. @@ -31,11 +31,11 @@ To ensure the debt positions can always be closed with suffcient smartcoin, it i # Specification Add one new parameter Force Settlement Fee Percentage(FSFP) for each smartcoin, which is controlled by the smartcoin owner. -FSO is Force Settlement Offset. +FSO is Force Settlement Offset of the smartcoin. -When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSFP)/[feed price price*(1+FSO)]`, the settled debt position owner sells collaterals in quantity `X/[feed price*(1+FSO)]` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFP/[feed price*(1+FSO)]` will be paid to the owner of the smartcoin as force settlement fee. +When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSO)*(1-FSFP)/feed price price*`, the settled debt position owner sells collaterals in quantity `X*(1-FSO)/feed price*` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFP*(1-FSO)/feed price*` will be paid to the owner of the smartcoin as force settlement fee. -In this scenario, `force settlement order price = feed price*(1+FSO)` is the price to the settled debt position owners(maker). and the force settlement fee is calculated out based on this order price and FSFP. +In this scenario, `force settlement order price = feed price/(1-FSO)` is the price to the settled debt position owners(maker). and the force settlement fee is calculated out based on this order price and FSFP. # Copyright This document is placed in the public domain. From a9f282487f2cc684657747711356fe80f40ef707 Mon Sep 17 00:00:00 2001 From: bitcrab Date: Wed, 11 Mar 2020 15:59:29 +0800 Subject: [PATCH 08/11] Update bsip-0087.md update specification --- bsip-0087.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/bsip-0087.md b/bsip-0087.md index b49a65a..cd98e37 100644 --- a/bsip-0087.md +++ b/bsip-0087.md @@ -33,9 +33,9 @@ Add one new parameter Force Settlement Fee Percentage(FSFP) for each smartcoin, FSO is Force Settlement Offset of the smartcoin. -When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collaterals in quantity `X*(1-FSO)*(1-FSFP)/feed price price*`, the settled debt position owner sells collaterals in quantity `X*(1-FSO)/feed price*` and get smartcoin in quantity `X`, the delta in paid and received collaterals in quantity `X*FSFP*(1-FSO)/feed price*` will be paid to the owner of the smartcoin as force settlement fee. +When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collateral in quantity `X*(1-FSO)*(1-FSFP)/feed price price*`, the settled debt position owner sells collateral in quantity `X*(1-FSO)/feed price*` and get smartcoin in quantity `X`, the delta in paid and received collateral in quantity `X*FSFP*(1-FSO)/feed price*` will be paid to the owner of the smartcoin as force settlement fee. -In this scenario, `force settlement order price = feed price/(1-FSO)` is the price to the settled debt position owners(maker). and the force settlement fee is calculated out based on this order price and FSFP. +In this scenario, `force settlement order price = feed price/(1-FSO)` is the price to the settled debt position owners(maker). and the force settlement fee is paid in collateral and the amount is calculated out based on this order price and FSFP. # Copyright This document is placed in the public domain. From 86be86fb8e2bbe420882424b89049ccfdff46a2e Mon Sep 17 00:00:00 2001 From: bitcrab Date: Wed, 11 Mar 2020 16:14:09 +0800 Subject: [PATCH 09/11] Update bsip-0087.md update specification --- bsip-0087.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/bsip-0087.md b/bsip-0087.md index cd98e37..b2d57fa 100644 --- a/bsip-0087.md +++ b/bsip-0087.md @@ -35,7 +35,7 @@ FSO is Force Settlement Offset of the smartcoin. When a force settlement is executed, the buyer sells smartcoin with quantity `X` and get collateral in quantity `X*(1-FSO)*(1-FSFP)/feed price price*`, the settled debt position owner sells collateral in quantity `X*(1-FSO)/feed price*` and get smartcoin in quantity `X`, the delta in paid and received collateral in quantity `X*FSFP*(1-FSO)/feed price*` will be paid to the owner of the smartcoin as force settlement fee. -In this scenario, `force settlement order price = feed price/(1-FSO)` is the price to the settled debt position owners(maker). and the force settlement fee is paid in collateral and the amount is calculated out based on this order price and FSFP. +In this scenario, as a price offset parameter, FSO is irrelevant to fee charging, it just define `force settlement price = feed price/(1-FSO)`. and the force settlement fee is paid in collateral and the amount is calculated out based on `force settlement price` and `FSFP`. # Copyright This document is placed in the public domain. From cc4ebd8f33a70719d35b2453174c101bbf6ccc5f Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Stefan=20Schie=C3=9Fl?= Date: Wed, 11 Mar 2020 12:25:22 +0100 Subject: [PATCH 10/11] set bsip-0087 to accepted --- bsip-0087.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/bsip-0087.md b/bsip-0087.md index b2d57fa..dc46ca9 100644 --- a/bsip-0087.md +++ b/bsip-0087.md @@ -2,7 +2,7 @@ Title: Force Settlement Fee Authors: Jerry Liu bitcrab@qq.com - Status: Draft + Status: Accepted Type: Protocol Created: 2020-02-23 Discussion: https://github.com/bitshares/bsips/issues/260 From ec43c45ae293a9d27eadb1fd25ba2db38ab73ac8 Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Stefan=20Schie=C3=9Fl?= Date: Wed, 11 Mar 2020 12:26:39 +0100 Subject: [PATCH 11/11] add bsip 87 to readme --- README.md | 5 ++++- 1 file changed, 4 insertions(+), 1 deletion(-) diff --git a/README.md b/README.md index 6a30f49..5f0ad77 100644 --- a/README.md +++ b/README.md @@ -86,4 +86,7 @@ Number | Title | [81](https://github.com/bitshares/bsips/issues/229) | Simple Maker-Taker Market Fees | Abit More | Protocol | Draft [84](https://github.com/bitshares/bsips/issues/81) | Elections Based on non-Core Asset | Peter Conrad | Protocol | Draft [85](https://github.com/bitshares/bsips/issues/240) | Maker Order Creation Fee Discount | Abit More | Protocol | Draft -[86](bsip-0086.md) | Share market fees to the network | Abit More | Protocol | Approved \ No newline at end of file +[86](bsip-0086.md) | Share market fees to the network | Abit More | Protocol | Approved +[87](bsip-0087.md) | Force Settlement Fee | Jerry Liu | Protocol | Accepted + +