Margin Trading Strategies – a Beginner’s Guide - Crypto

Every announcement Binance made today with links to each (July 30th 2020)

Multiple BUSD, USDT and BKRW Trading Pairs Added on Binance - 2020/07/30
[https://www.binance.com/en/support/articles/043fc71cdcce4fcfbdae133d8d0f35aa]
Isolated Margin Trading for STORJ and BAND Enabled on Binance
(https://www.binance.com/en/support/articles/282ee1b995864b37a359b463db60fa62)
Binance Futures Will Launch RLC/USDT Perpetual Contract With Up to 50x Leverage
(https://www.binance.com/en/support/articles/7efe93a63b364f039319fcf5313874e4)
Upcoming BitShares (BTS) and Solana (SOL) Network Upgrades Supported on Binance
(https://www.binance.com/en/support/articles/45bac20c1ee246c9bf9989247b14e4f1)
Binance Launches 26th Phase of Binance Savings - Special USDT Event
(https://www.binance.com/en/support/articles/511392c031ac467c82e11b1c0f006b8e)
Notice of Removal of Trading Pairs - 2020/07/31
(https://www.binance.com/en/support/articles/233bd25b1a0f432fbb1f3fb9d373dd15)
submitted by Darc_BinanceAngel to binance [link] [comments]

CoinEx Weekly Update, 13–19 July 2020

CoinEx Weekly Update, 13–19 July 2020

https://preview.redd.it/jsj4gs06rzb51.png?width=700&format=png&auto=webp&s=72c3fc62c735fc28ac53a05c1f7a0f7b68b91706
Dear CoinEx users, last week was full of events in CoinEx ecosystem. Coin listings, ongoing trading events, ecosystem expanding as usual. That week also experienced the worst twitter hack ever. Fortunately, CoinEx was one of the few major crypto related accounts that was not affected. In this recap, we collected major events that took place over the last week in CoinEx.

Join The DeFi Train And Share $20k

https://preview.redd.it/3k7fc7s8rzb51.png?width=680&format=png&auto=webp&s=fe5748ec3d282bbdb28360ab62117982c8305944
As DeFi continues to shine and gain more attention, CoinEx has launched new campaign to reward its users.
Duration: July 15, 2020 — July 24, 2020 (UTC)
Tokens Involved: LINK, SNX, COMP, REN, KNC
More information

CoinEx Listings

Providing more and better investment/trading options have always been of great importance to the CoinEx team. For this reason, more coins, particularly centered on DeFi, were listed after rigorous reviews.

Bitshares (BTS)

https://preview.redd.it/70tmsnjbrzb51.jpg?width=1080&format=pjpg&auto=webp&s=e73fa8a335f20430ab49706a764c0a527c17ce09
Bitshares (BTS), formerly known as ProtoShares, is a peer-to-peer distributed ledger and network that can issue collateralized market-pegged smart coins known as bitAssets. Bitshares was created by Dan Larimer, the co-founder of eosio, Steemit, and Cryptonomex. BitShares also has its own decentralized exchange. BTS was listed alongside with a trading event divided into two categories.
Event Details Event 1: Deposit to share 60,000 BTS Duration: 3:00 July 14–16:00 July 20, 2020 (UTC) Event 2: Trade to share 40,000 BTS Duration: 3:00 July 17–16:00 July 20, 2020 (UTC)
About BTS Website | Explorer | White paper
Listing and Trade Event Details

Numerai (NMR)

https://preview.redd.it/1jedhoaerzb51.png?width=680&format=png&auto=webp&s=30ebbdd4018ceeb0535cce431f66e9d62a4f7a3e
Numerai is a framework to help you automate your weekly submission workflow with your own infrastructure. Use the numerai-cli to provision your infrastructure, and deploy your pre-trained model as a server that listens for new tournament data, runs your model and uploads the predictions back to Numerai.
About NMR Website | Explorer
Listing Details

TikTok Video Campaign

https://preview.redd.it/1r2namigrzb51.jpg?width=700&format=pjpg&auto=webp&s=821fdb95344f5089f891831cd154daa66872b941
Test your creativity and win in the CoinEx TikTok challenge. Lots of fantastic prizes are waiting for you!

https://preview.redd.it/46qtmsyirzb51.jpg?width=538&format=pjpg&auto=webp&s=34a8c93454e0b7e938ba88b51c576e4045d0fb0d

CoinEx Announces Support For Avalanche Mainnet


https://preview.redd.it/io3rjy5lrzb51.png?width=700&format=png&auto=webp&s=76fee6e68e1b6dde25bd6337d64d7fbceb5c0add
Avalanche is an open-source platform for launching highly decentralized applications, new financial primitives, and new interoperable blockchains. Upon its Mainnet launch, CoinEx will support AVAX for trading, starting with AVAX/BTC & AVAX/USDT pairs. A trading event will be held also to reward users.
Details

ONT/VET/NEO/TRX for ONG/VTHO/GAS Staking Reward Paid

CoinEx holders of the mentioned coins received their staking rewards for the month of June.
Hold & get staking incentives 1. Hold NEO and get GAS 2. Hold ONT and get ONG 3. Hold VET and get VTHO
Allocation time July 15,2020
For more details on the calculation, please click here.

Suspension And Resumption of Perpetual Contract Trading

Perpetual contract trading was suspended to carry out system upgrade. This was done to provide traders with better trading experience.
Upgrade duration: 10:00–10:05, July 17, 2020 (UTC)
About this upgrade: Once it is completed, the price precision of BTCUSD Contract will be changed from 0.5 to 0.1

NODE MAINTENANCE

Suspension And Resumption Of Deposit And Withdrawal Of Affected Projects

Important

ABOUT CoinEx

As a global and professional cryptocurrency exchange service provider, CoinEx was founded in December 2017 with Bitmain-led investment and has obtained a legal license in Estonia. It is a subsidiary brand of the ViaBTC Group, which owns the fifth largest BTC mining pool, which is also the largest of BCH mining, in the world.
CoinEx supports perpetual contract, spot, margin trading, and other derivatives trading, and its service reaches global users in nearly 100 countries/regions with various languages available, such as Chinese, English, Korean and Russian.
Click here to register on CoinEx!
Website: https://www.coinex.com/
Twitter: https://twitter.com/coinexcom
Telegram: https://t.me/CoinExOfficialENG
submitted by CoinExcom to Coinex [link] [comments]

The 8 most promising projects of 2018 and why we think their AltCoins will pump!

The 8 most promising projects of 2018 and why we think their AltCoins will pump! submitted by mikegameiro to CryptoCurrencies [link] [comments]

Continuous Proof of Bitcoin Burn: trust minimized sidechains and bitcoin-pegs w/o oracles/federations today

Original design presented for discussion and criticism
originally posted here: https://bitcointalk.org/index.php?topic=5212814.0
TLDR: Proposing the following that's possible today to use for any existing or new altcoins:
_______________________________________

Disclaimer:

This is not an altcoin thread. I'm not making anything. The design discussed options for existing altcoins and new ways to built on top of Bitcoin inheriting some of its security guarantees. 2 parts: First, the design allows any altcoins to switch to securing themselves via Bitcoin instead of their own PoW or PoS with significant benefits to both altcoins and Bitcoin (and environment lol). Second, I explain how to create Bitcoin-pegged assets to turn altcoins into a Bitcoin sidechain equivalent. Let me know if this is of interest or if it exists, feel free to use or do anything with this, hopefully I can help.

Issue:

Solution to first few points:

PoW altcoin switching to CPoBB would trade:

PoS altcoin switching to CPoBB would trade:

We already have a permissionless, compact, public, high-cost-backed finality base layer to build on top - Bitcoin! It will handle sorting, data availability, finality, and has something of value to use instead of capital or energy that's outside the sidechain - the Bitcoin coins. The sunk costs of PoW can be simulated by burning Bitcoin, similar to concept known as Proof of Burn where Bitcoin are sent to unspendable address. Unlike ICO's, no contributors can take out the Bitcoins and get rewards for free. Unlike PoS, entry into supply lies outside the alt-chain and thus doesn't depend on permission of alt-chain stake-coin holders. It's hard to find a more bandwidth or state size protective blockchain to use other than Bitcoin as well so altcoins can be Bitcoin-aware at little marginal difficulty - 10 years of history fully validates in under a day.

What are typical issues with Proof of Burn?

Solution:

This should be required for any design for it to stay permissionless. Optional is constant fixed emission rate for altcoins not trying to be money if goal is to maximize accessibility. Since it's not depending on brand new PoW for security, they don't have to depend on massive early rewards giving disproportionate fraction of supply at earliest stage either. If 10 coins are created every block, after n blocks, at rate of 10 coins per block, % emission per block is = (100/n)%, an always decreasing number. Sidechain coin doesn't need to be scarce money, and could maximize distribution of control by encouraging further distribution. If no burners exist in a block, altcoin block reward is simply added to next block reward making emission predictable.
Sidechain block content should be committed in burn transaction via a root of the merkle tree of its transactions. Sidechain state will depend on Bitcoin for finality and block time between commitment broadcasts. However, the throughput can be of any size per block, unlimited number of such sidechains can exist with their own rules and validation costs are handled only by nodes that choose to be aware of a specific sidechain by running its consensus compatible software.
Important design decision is how can protocol determine the "true" side-block and how to distribute incentives. Simplest solution is to always :
  1. Agree on the valid sidechain block matching the merkle root commitment for the largest amount of Bitcoin burnt, earliest inclusion in the bitcoin block as the tie breaker
  2. Distribute block reward during the next side-block proportional to current amounts burnt
  3. Bitcoin fee market serves as deterrent for spam submissions of blocks to validate
e.g.
sidechain block reward is set always at 10 altcoins per block Bitcoin block contains the following content embedded and part of its transactions: tx11: burns 0.01 BTC & OP_RETURN tx56: burns 0.05 BTC & OP_RETURN ... <...root of valid sidechain block version 1> ... tx78: burns 1 BTC & OP_RETURN ... <...root of valid sidechain block version 2> ... tx124: burns 0.2 BTC & OP_RETURN ... <...root of INVALID sidechain block version 3> ...
Validity is deterministic by rules in client side node software (e.g. signature validation) so all nodes can independently see version 3 is invalid and thus burner of tx124 gets no reward allocated. The largest valid burn is from tx78 so version 2 is used for the blockchain in sidechain. The total valid burn is 1.06 BTC, so 10 altcoins to be distributed in the next block are 0.094, 0.472, 9.434 to owners of first 3 transactions, respectively.
Censorship attack would require continuous costs in Bitcoin on the attacker and can be waited out. Censorship would also be limited to on-sidechain specific transactions as emission distribution to others CPoB contributors wouldn't be affected as blocks without matching coin distributions on sidechain wouldn't be valid. Additionally, sidechains can allow a limited number of sidechain transactions to happen via embedding transaction data inside Bitcoin transactions (e.g. OP_RETURN) as a way to use Bitcoin for data availability layer in case sidechain transactions are being censored on their network. Since all sidechain nodes are Bitcoin aware, it would be trivial to include.
Sidechain blocks cannot be reverted without reverting Bitcoin blocks or hard forking the protocol used to derive sidechain state. If protocol is forked, the value of sidechain coins on each fork of sidechain state becomes important but Proof of Burn natively guarantees trust minimized and permissionless distribution of the coins, something inferior methods like obscure early distributions, trusted pre-mines, and trusted ICO's cannot do.
More bitcoins being burnt is parallel to more hash rate entering PoW, with each miner or burner getting smaller amount of altcoins on average making it unprofitable to burn or mine and forcing some to exit. At equilibrium costs of equipment and electricity approaches value gained from selling coins just as at equilibrium costs of burnt coins approaches value of altcoins rewarded. In both cases it incentivizes further distribution to markets to cover the costs making burners and miners dependent on users via markets. In both cases it's also possible to mine without permission and mine at a loss temporarily to gain some altcoins without permission if you want to.
Altcoins benefit by inheriting many of bitcoin security guarantees, bitcoin parties have to do nothing if they don't want to, but will see their coins grow more scarce through burning. The contributions to the fee market will contribute to higher Bitcoin miner rewards even after block reward is gone.

Sidechain Bitcoin-pegs:

What is the ideal goal of the sidechains? Ideally to have a token that has the bi-directionally pegged value to Bitcoin and tradeable ~1:1 for Bitcoin that gives Bitcoin users an option of a different rule set without compromising the base chain nor forcing base chain participants to do anything different.
Issues with value pegs:
Let's get rid of the idea of needing Bitcoin collateral to back pegged coins 1:1 as that's never secure, independent, or scalable at same security level. As drive-chain design suggested the peg doesn't have to be fast, can take months, just needs to exist so other methods can be used to speed it up like atomic swaps by volunteers taking on the risk for a fee.
In continuous proof of burn we have another source of Bitcoins, the burnt Bitcoins. Sidechain protocols can require some minor percentage (e.g. 20%) of burner tx value coins via another output to go to reimburse those withdrawing side-Bitcoins to Bitcoin chain until they are filled. If withdrawal queue is empty that % is burnt instead. Selection of who receives reimbursement is deterministic per burner. Percentage must be kept small as it's assumed it's possible to get up to that much discount on altcoin emissions.
Let's use a really simple example case where each burner pays 20% of burner tx amount to cover withdrawal in exact order requested with no attempts at other matching, capped at half amount requested per payout. Example:
withdrawal queue: request1: 0.2 sBTC request2: 1.0 sBTC request3: 0.5 sBTC
same block burners: tx burns 0.8 BTC, 0.1 BTC is sent to request1, 0.1 BTC is sent to request2 tx burns 0.4 BTC, 0.1 BTC is sent to request1 tx burns 0.08 BTC, 0.02 BTC is sent to request 1 tx burns 1.2 BTC, 0.1 BTC is sent to request1, 0.2 BTC is sent to request2
withdrawal queue: request1: filled with 0.32 BTC instead of 0.2 sBTC, removed from queue request2: partially-filled with 0.3 BTC out of 1.0 sBTC, 0.7 BTC remaining for next queue request3: still 0.5 sBTC
Withdrawal requests can either take long time to get to filled due to cap per burn or get overfilled as seen in "request1" example, hard to predict. Overfilling is not a big deal since we're not dealing with a finite source. The risk a user that chooses to use the sidechain pegged coin takes on is based on the rate at which they can expect to get paid based on value of altcoin emission that generally matches Bitcoin burn rate. If sidechain loses interest and nobody is burning enough bitcoin, the funds might be lost so the scale of risk has to be measured. If Bitcoins burnt per day is 0.5 BTC total and you hope to deposit or withdraw 5000 BTC, it might take a long time or never happen to withdraw it. But for amounts comparable or under 0.5 BTC/day average burnt with 5 side-BTC on sidechain outstanding total the risks are more reasonable.
Deposits onto the sidechain are far easier - by burning Bitcoin in a separate known unspendable deposit address for that sidechain and sidechain protocol issuing matching amount of side-Bitcoin. Withdrawn bitcoins are treated as burnt bitcoins for sake of dividing block rewards as long as they followed the deterministic rules for their burn to count as valid and percentage used for withdrawals is kept small to avoid approaching free altcoin emissions by paying for your own withdrawals and ensuring significant unforgeable losses.
Ideally more matching is used so large withdrawals don't completely block everyone else and small withdrawals don't completely block large withdrawals. Better methods should deterministically randomize assigned withdrawals via previous Bitcoin block hash, prioritized by request time (earliest arrivals should get paid earlier), and amount of peg outstanding vs burn amount (smaller burns should prioritize smaller outstanding balances). Fee market on bitcoin discourages doing withdrawals of too small amounts and encourages batching by burners.
The second method is less reliable but already known that uses over-collateralized loans that create a oracle-pegged token that can be pegged to the bitcoin value. It was already used by its inventors in 2014 on bitshares (e.g. bitCNY, bitUSD, bitBTC) and similarly by MakerDAO in 2018. The upside is a trust minimized distribution of CPoB coins can be used to distribute trust over selection of price feed oracles far better than pre-mined single trusted party based distributions used in MakerDAO (100% pre-mined) and to a bit lesser degree on bitshares (~50% mined, ~50% premined before dpos). The downside is 2 fold: first the supply of BTC pegged coin would depend on people opening an equivalent of a leveraged long position on the altcoin/BTC pair, which is hard to convince people to do as seen by very poor liquidity of bitBTC in the past. Second downside is oracles can still collude to mess with price feeds, and while their influence might be limited via capped price changes per unit time and might compromise their continuous revenue stream from fees, the leverage benefits might outweight the losses. The use of continous proof of burn to peg withdrawals is superior method as it is simply a minor byproduct of "mining" for altcoins and doesn't depend on traders positions. At the moment I'm not aware of any market-pegged coins on trust minimized platforms or implemented in trust minimized way (e.g. premined mkr on premined eth = 2 sets of trusted third parties each of which with full control over the design).
_______________________________________

Brief issues with current altchains options:

  1. PoW: New PoW altcoins suffer high risk of attacks. Additional PoW chains require high energy and capital costs to create permissionless entry and trust minimized miners that are forever dependent on markets to hold them accountable. Using same algorithm or equipment as another chain or merge-mining puts you at a disadvantage by allowing some miners to attack and still cover sunk costs on another chain. Using a different algorithm/equipment requires building up the value of sunk costs to protect against attacks with significant energy and capital costs. Drive-chains also require miners to allow it by having to be sidechain aware and thus incur additional costs on them and validating nodes if the sidechain rewards are of value and importance.
  2. PoS: PoS is permissioned (requires permission from internal party to use network or contribute to consensus on permitted scale), allows perpetual control without accountability to others, and incentivizes centralization of control over time. Without continuous source of sunk costs there's no reason to give up control. By having consensus entirely dependent on internal state network, unlike PoW but like private databases, cannot guarantee independent permissionless entry and thus cannot claim trust minimization. Has no built in distribution methods so depends on safe start (snapshot of trust minimized distributions or PoW period) followed by losing that on switch to PoS or starting off dependent on a single trusted party such as case in all significant pre-mines and ICO's.
  3. Proof of Capacity: PoC is just shifting costs further to capital over PoW to achieve same guarantees.
  4. PoW/PoS: Still require additional PoW chain creation. Strong dependence on PoS can render PoW irrelevant and thus inherit the worst properties of both protocols.
  5. Tokens inherit all trust dependencies of parent blockchain and thus depend on the above.
  6. Embedded consensus (counterparty, veriblock?, omni): Lacks mechanism for distribution, requires all tx data to be inside scarce Bitcoin block space so high cost to users instead of compensated miners. If you want to build a very expressive scripting language, might very hard & expensive to fit into Bitcoin tx vs CPoBB external content of unlimited size in a committed hash. Same as CPoBB is Bitcoin-aware so can respond to Bitcoin being sent but without source of Bitcoins like burning no way to do any trust minimized Bitcoin-pegs it can control fully.

Few extra notes from my talks with people:

Main questions to you:

open to working on this further with others
submitted by awasi868 to CryptoTechnology [link] [comments]

MARGIN TRADING ENGINE BUGGED AGAIN!!

(I already had an issue once, lost a ton of dollars because of that. But after thousands of E-Mails Poloniex Support told me they did everything right and no issue. Lol.)

Nevertheless I continued trading on Poloniex because they offer Margin Trading with BitShares while having Factom as collateral and that is what I wanna trade, only exchange where it is possible like this.

I had an open position of around 2.300.000 BTS LONG at base price 0.00000874, so my total borrowed value was 20.38 BTC.
Now I sold BTS for 5 BTC, around 650.000 BTS where sold.
While the trading engine still shows my total borrowed value correctly:
Total Borrowed Value15.37939099 BTC
It shows my position entirely wrong with just 1013069.82880897 BTS LONG at base price 0.00000925.

Proofs that the position amount of around 1.000.000 BTS is wrong:
  1. You can see in my trade history that I just sold around 650.000 BTS of this 2.300.000 BTS after buying them so my position should be around 1.650.000 BTS LONG
  2. You can even calculate it. Total Borrowed Value / Base Price MUST give the amount of BTS in my trade, as this is the only margin trade I have open. 15.3793 / 0.00000925 = 1.660.000 BTS LONG


You can even more see and proof it with ONE LOOK on the bugged trading engine:
https://imgur.com/a/443Wr18
https://imgur.com/a/HbYVl0d

"Unrealized P/L" of 3.047 BTC is correct and calculated with the real amount of around 1.650.000 BTS LONG at 0.00000925
"P/L (BTC)" of 1.4718 BTC is incorrect and calculated with the wrong amount of 1.000.000 BTS LONG at 0.0000925





As my last inquiry like that was smashed by Poloniex and their whole bugged margin trading engine costed me 6-digit-amounts of losses, I decided to post it this time to make sure they do not fuck me again, as it is super-obvious this time it is an error on their bugged engine.
If you offer people to trade these amounts on your Exchange, you should make it working Poloniex.
submitted by petermaffay123 to poloniex [link] [comments]

DEEX - A DECENTRALIZED EXCHANGE WITH FUNCTIONAL BENEFITS

In the initial stages of the crypto economic development, centralized exchanges were the more preferred option because they are easy to use, easy to access, and provide advanced trading functions such as margin trading, stop-loss, lending and others. However, these centralized systems are exposed to a number of risks such as security threats, unfair competition, danger of sanctions, political factors, and much more. Till date, the amount of stolen customer funds from centralized exchanges amounts to almost $500 million.
DEEX promises to solve this problem by building the world’s first decentralized exchange with functional benefits close to a centralized exchange, but without its permanent security threats and sanction risks. It also provides the clients complete control over their fund.
The core of this decentralized ecosystem is the BitShares 2.0 (Graphene) blockchain, an extremely fast and reliable platform with not a single hacking record since its creation.
Deex Exchange - https://alpha.deex.exchange/
submitted by anike01 to DEEX_Exchange [link] [comments]

Alternative for Poloniex?

Hi people,
I'm looking for a better exchange without lagg? A good exchange with margin trading available? Anyone have a tip? Thanks already!
submitted by JasperCrypto to CryptoMarkets [link] [comments]

MARGIN TRADING ENGINE BUGGED AGAIN!!

(I already had an issue once, lost a ton of dollars because of that. But after thousands of E-Mails Poloniex Support told me they did everything right and no issue. Lol.)
Nevertheless I continued trading on Poloniex because they offer Margin Trading with BitShares while having Factom as collateral and that is what I wanna trade, only exchange where it is possible like this.
I had an open position of around 2.300.000 BTS LONG at base price 0.00000874, so my total borrowed value was 20.38 BTC.
Now I sold BTS for 5 BTC, around 650.000 BTS where sold.
While the trading engine still shows my total borrowed value correctly:
Total Borrowed Value15.37939099 BTC
It shows my position entirely wrong with just 1013069.82880897 BTS LONG at base price 0.00000925.
Proofs that the position amount of around 1.000.000 BTS is wrong:
  1. You can see in my trade history that I just sold around 650.000 BTS of this 2.300.000 BTS after buying them so my position should be around 1.650.000 BTS LONG
  2. You can even calculate it. Total Borrowed Value / Base Price MUST give the amount of BTS in my trade, as this is the only margin trade I have open. 15.3793 / 0.00000925 = 1.660.000 BTS LONG
You can even more see and proof it with ONE LOOK on the bugged trading engine:
https://imgur.com/a/443Wr18
https://imgur.com/a/HbYVl0d
"Unrealized P/L" of 3.047 BTC is correct and calculated with the real amount of around 1.650.000 BTS LONG at 0.00000925
"P/L (BTC)" of 1.4718 BTC is incorrect and calculated with the wrong amount of 1.000.000 BTS LONG at 0.0000925
As my last inquiry like that was smashed by Poloniex and their whole bugged margin trading engine costed me 6-digit-amounts of losses, I decided to post it this time to make sure they do not fuck me again, as it is super-obvious this time it is an error on their bugged engine.
If you offer people to trade these amounts on your Exchange, you should make it working Poloniex.
submitted by petermaffay123 to PoloniexForum [link] [comments]

BitShares -- Collection Of FAQs, Developers' Guides, Tutorials, Network/Wallet Configuration, ... and Much More

Thanks to Tsugimoto, we have a great collection of Developers Guide, FAQs, Tutorials & much more, for anyone wanting to get into BitShares.
Link: https://steemit.com/bitshares/@tsugimoto/bitshares-a-colloction-of-developers-tutorial-faqs-and-more
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
Reading materials
General
Address structure, Format, block, time, etc
Protocol
Data structures
Public key system
Scriping language?
Account
Vesting Balance
Voting
Assets
Fee Pool * What is the fee pool all about?
Prediction Market
Market Fees
Market Pegged Assets
TransfeTransactions
Integration Guide * How to Run and Use a Full Node
Blockchain Interaction
Network and Wallet Configuration
Network and Wallet Configuration
CLI Wallet - FAQ
Create lifetime membership
Witness - FAQ
Price Feeds
Public & Private testnet differences
Committee Guide
Worker Guide
submitted by kryptosapien to BitShares [link] [comments]

An Indepth Review Of the Loopring Cryptocurrency

An Indepth Review Of the Loopring Cryptocurrency
https://preview.redd.it/59mouqpyju421.jpg?width=598&format=pjpg&auto=webp&s=1c4f6d5c4f721494f973d996bc237aba89381029
It is no news that all over the World today, there are roughly hundreds of cryptocurrency exchanges available for users. While the Blockchain technology may actually be decentralizing the world, there remains one aspect of the dispersed ledger technology community that is in critical need of vital decentralization. This is the cryptocurrency exchanges.
In spite of all these, a new project has been set up to hasten the transformation towards a commonly used decentralized exchange structure and create the monetary system of the future. The major crypto exchanges presently active in the cryptocurrency sector depend on susceptible centralized structures. This leaves them accessible to cyber-attacks and fraudulent activities.
Excitingly, the decentralized exchange technology is currently advancing. Thereby giving traders a form of exchange that is true to the foundational precepts of the blockchain innovation. The project that has been set up is known as the Loopring project. It is an uncommon program in the world of decentralized exchanges.
Instead of creating a specific decentralized exchange solution, the Loopring organization is laboring on the way to the advancement of a system that can be used beyond all exchanges. It can be used to decrease risk, boost liquidity, and build a network that assures the best prices for all traders. Still wondering what the Loopring currency is all about? It will be explained shortly.
What Is The Loopring Cryptocurrency?
Loopring is a decentralized exchange formality and a computerized performance system created on Ethereum. It enables its users to trade assets across exchanges. The loopring cryptocurrency is not just a decentralized exchange. It is a system that expedites decentralized exchanging via ring-sharing and order matching.
The essential thing to note and understand is that Loopring will combine the orders sent to its network and document these orders using the order books of diverse exchanges. All decentralized and centralized exchanges will be able to administer Loopring. It provides exchanges with the connection to cross both blockchain and exchange liquidity.
The Loopring cryptocurrency also provides investors with access to the best prices available on the extensive market. However, Loopring can be referred to as blockchain's agnostic. This means that any platform that makes use of smart contracts such as Neo, Ethereum, Otum, etc. can assimilate with Loopring.
Loopring aims at functioning as an accessible regulated base for the development of decentralized applications that combine cryptocurrency exchange performance. The platform does not need the token holder to drop or clamp their token in exchanges for trading. It means that during the trade process, all the tokens will remain on the blockchain in their individual addresses.
How Does It Work?
https://preview.redd.it/7eh6pdp8ku421.jpg?width=600&format=pjpg&auto=webp&s=eca4610bdd12dde39332999fcdc5e73ae9b7ff19
When making use of the Loopring cryptocurrency, traders do not have to make down payment of funds into an exchange to start the trading process. With decentralized exchanges such as Ether Delta, IDex, Bitshares, a trader will have to deposit funds onto the platform usually via an Ethereum smart contract. But in the case of Loopring, it is a different ballgame.
The funds always remain in user’s wallets and are never clamped by orders. This enables users to have full privacy over their funds while trading. It enables the traders to cancel, trim, or make an increase to their order before it is carried out.
A trader can also transfer funds from his/her wallet completely after placing an order although this transfer can affect your final order because the protocol’s ring miners would receive an alert directing them to the wallet’s remaining balance before matching orders. The ring miners work to sustain trade history and order books, enumerating the most effective approach to execute received orders.
However, it is an estimated extreme procedure that is conducted off-chain. The ring miners are responsible for order matching, making an effort to fill orders completely or partially at a particular exchange rate or better.
The Loopring community comprises of many diverse components that function together to deliver complete exchange performance. The first component of the Loopring system is a wallet service, which provides users with access to their tokens and enables them to carry out orders on the Loopring network.
The nodes inside the Loopring network are provided with an adjustable pattern of approach to cooperate in network upkeep. The Loopring cryptocurrency merges a relay-mesh network to quicken orders and liquidity distribution. Nodes operating the Loopring relay software combine with the already functioning network and distributes liquidity with other relays over the blockchain.
The Loopring community is governed by Loopring Protocol Smart Contracts, which are publicly auditable. These smart contracts supervise the ring miners and also control all token transactions.
Finally, the asset tokenization services give network participants the power to trade assets that cannot be directly marketed on the Loopring network. These services are originally centralized and are operated by honest companies or organizations.
The Loopring protocol consists of components that allows users to deposit assets and get tokens in return that can be advertised on the Loopring network. Thereby, allowing the emulation of cross-chain trading.
Benefits Of The Loopring Cryptocurrency
Some of its benefits of the Loopring Cryptocurrency include:
⦁ Zero Risk
The true meaning of decentralized trading is that your assets will never leave your wallet until you have really sold them. To enable this, smart contracts will have to be verified to access your wallets.
In return, your funds will always be under your control. This is one of the benefits of loopring because if an exchange vanishes, is hacked or becomes bankrupt and many other reasons, you still own all your assets.
⦁ Decentralization
As discussed already above; decentralized exchanges simply mean that no one can manage what is being traded or when it is being traded. Although only the deployed inflexible smart-contracts are excluded.
The only means to halt the trades on those platforms would be to shut down the World Wide Web. This is noticeably the future, and other programs already have working products for this decentralization.
⦁ Order Distribution
This is a large benefit in the sense that, it is not backed by any other protocol. This implies that your order may be divided into diverse smaller orders. It will also get a trader the best price from every active exchange. Essentially, this means you are always buying the most affordable and selling the highest bid across plenty of exchanges.
⦁ Ring Matching
Lots of exchanges simply match up the buying and selling orders. However, Loopring makes use of a ring-based loop to accomplish its orders.
Loopring makes use of an internal balance sheet of all active exchanges to create those rings. It thereby increases the complete liquidity automatically and proffers a highly developed matching order.
⦁ Cross-chain Protocol
The entire protocol is presently being created on the Ethereum network. It is envisioned to comprise of a platform/blockchain agnostic. The project is supported by NEO and Otum. It is however probably expected that it will get to more blockchains than Ethereum.
However, Loopring cryptocurrency has an updated version which is the Loopring cryptocurrency 2.0. It is the new fee model.

The Loopring Cryptocurrency 2.0 New Fee Model
https://preview.redd.it/652o7fiiku421.jpg?width=595&format=pjpg&auto=webp&s=f54ad155af66389fe3961ad9cd679f5046fa9691
The Loopring 2.0 consists of an upgraded protocol smart contracts and this upgraded version makes its component much more easy to use. It is adjustable and makes room for more powerful matching operations.
An intriguing advancement of the Loopring 2.0 is the reimagining of the protocol fee model. Before the creation of the Loopring 2.0, the platform has been making use of a fee-payment token. This means a user will need Loopring cryptocurrency to pay fees to its community participants for trading. The three main aspects of the Loopring community that are involved in the trade procedures and makes use of loopring cryptocurrency as payment are;
⦁ Traders
⦁ Relayers (Miners)
⦁ Wallets
Traders create orders in wallets, and this sends them to relays that is the ring miners for order matching. The Loopring protocol is created for the highest elasticity. This implies that a wallet can interact with one or diverse relays. The relays can also interact with each other to distribute liquidity.
Wallets, however, distribute fees with relays as they deem fit, and relays can as well distribute fees with each other. Note that sometimes these roles are definite, but frequently a wallet and relay carry out their functions by a particular entity.
In the former version, a Loopring Cryptocurrency fee provides a miner with a base level of incentive. It also gives them the ability to function in upside if they see any better margins. Best of all, incomes are coordinated with means more savings for a user will come with more income for a miner.
However, the Loopring cryptocurrency 2.0 enables fee payments to be much more flexible. It eliminates the stiffness of demanding a particular fee payment token. It makes sure the token is fancy and gives adequate utility to the network. It remains lease free including all benefits left in-protocol, accumulating to every participant.
Wrapping It Up
Unlike a majority of the cryptocurrencies available, Loopring is a blockchain agnostic protocol, and this means that it can simply be operational on any public blockchain that supports smart contract operations.
Over time, it has been functional on Ethereum, Neo, and Qtum. Plus the Loopring team has strategies for broadening the protocol to every other blockchain shortly.

Author Telegram Username : @Crypto_YD
Author ETH Wallet Address : 0xd982859E2D4E10129Daa230ce7025691cdccc52D
submitted by Stanlekke78 to loopringorg [link] [comments]

Margin Trading, Lending, Stablecoins

Hey SwitcheoNetwork,
have you thought about the possibility of working together with Alchemint to implement things like
to the Switcheo Exchange?
Bitshares already has this option: The way it works there is, you open a margin position and effectively create their stablecoin, BitUSD, with the touch of a button. Pretty cool IMO.
Please upvote for awareness
submitted by MoneroPanda to Switcheo [link] [comments]

It's time to stop using centralized exchanges. Get 0.01 LTC for trying out BitShares today

Are you tired of exchanges shutting down from government regulation? Tired of your money being seized by the US government (and you're not even a US citizen!?)? Maybe you're tired of exchanges getting hacked and losing your money.
All of this can be avoided if you just use BitShares.
For all those using BTCC, they even support CNY!
BitShares has been around since 2013, and offers a decentralized exchange, trading many different currencies, including LTC->USD and LTC->BTC
It currently has poor volume for the LTC pairs, and I want to help fix that by bringing more Litecoin traders onto the platform.
To encourage the use of Decentralised Exchanges, I will give new BitShares users 0.01 LTC and 0.10 BTS
The first 100 users to reply to this post, with their BitShares username, will get 0.01 LTC and 0.10 BTS (BitShares).
RULES: Users must have at least 100 post/comment karma, and be more than a month old on Reddit. The BitShares account must have been created after this post.
To sign up for BitShares, just go to https://bitshares.org/wallet or download the client from https://bitshares.org
Using BitShares, you can trade BTC, LTC, ETH, STEEM, USD/EUCNY and many more, without a central body having control over your funds. It even has MARGIN TRADING!
submitted by someguy123_ to litecoin [link] [comments]

Decentralized Exchanges: Why are they important?

If you are remotely interested in buying or selling cryptocurrency, then you should know about exchanges. Many great exchanges offer excellent service. However, this exchange lack one crucial aspect, i.e., “decentralization.”
A decentralized exchange, for one, enables end users to sell and purchase cryptocurrency without any centralized control. Decentralized exchanges fall in line with the philosophy of blockchain technology and provide users a truly decentralized experience.

Decentralized exchange and their key functions

To make sure that a decentralized exchange works as intended, it needs to offer four core functions.
With these four key functions, a decentralized exchange(DEX) can work as intended, powering end users. Also, all the functions should be decentralized.
So, how does it differ from a traditional exchange? In the four key functions that we listed above, one asset exchange is kept decentralized, whereas the other three key functions are centralized. This also means that the centralized exchange has all the information about the person who is using their exchange thanks to the KYC(Know Your Customer).
Centralized exchanges have no choice when it comes to gathering information. They have to follow the AML and KYC regulations. In the end, the focus they have to follow regulations which result in a permissionless ecosystem.

Decentralized Exchanges: The Future of Exchanges

Decentralized exchange are the future considering they provide better security and ensure that the end user is in full control. This also means that decentralized exchanges are free from any kind of security threat that the centralized exchanges generally attract.
Apart from the four key features, a DEX should have the following key features.

What are the benefits of DEX?

To truly understand the importance of DEX, we need to understand the benefits it brings to the whole cryptocurrency ecosystem. By doing so, we can truly understand its position and the need for it. Let’s get started.
All these points point out the importance of decentralized exchanges.

Disadvantages of Decentralized Exchanges

Decentralized exchanges do come with some drawbacks. To get a better picture, we also need to go through its disadvantages. Let’s list them below.

DEXs that you should check out

There are many excellent DEXs out there. As a user, you should check them out.
  1. Bancor Protocol: Bancor Protocol tries to solve the liquidity problem with their unique Token Relay technology. It also tries to simplify the whole process. However, it only has a small list of cryptocurrency for now, but we think that it will grow more shortly.
  2. EtherDelta: EtherDelta is another popular DEX platform. It utilizes MetaMask to log in and does the trading. Here, you can do buy/sell order and also see the order book during your transaction time.
  3. 0x: 0x offers a peer-to-peer exchange which runs on Ethereum blockchain. All the Ethereum assets can be peer exchanged using 0x. More than 30+ projects are currently running on 0x.
  4. CryptoBridge: CryptoBridge is a new entrant to the decentralized exchange list. It runs on top of the BitShares network and provides access to all the popular altcoin pairs. The users have full control of their private keys and can safely trade using the decentralized exchange.
  5. Waves: Waves take advantage of Waves blockchain. It is a trustless platform where you can trade your tokens while keeping your privacy intact.

Conclusion

Decentralized exchanges(DEX) are indeed the future. Currently, most of the DEX platforms are suffering from a proper user experience, lack of liquidity and other issues that prevent from being mass adopted. However, the scene is growing in the right direction with many decentralized exchanges providing better service. So, do you think that DEXs will continue to grow? If yes, comment below and let us know. We are listening.

Full article in: https://icodog.io/analysis/decentralized-exchanges-why-are-they-important/
By Ricardo from icodog.io
submitted by EnriqueZGZ to ico [link] [comments]

BitShares X AMA: Trade BTC derivatives on the first decentralized autonomous exchange + 30 BTSX to anyone who posts their public key.

There’s been a lot of interest and confusion lately on what BitShares X is and how market pegged derivative assets work. We decided to set up this AMA to answer questions, hand out BTSX and get user accounts registered.
Learn to code
I’ll send 30 BTSX to anyone who downloads the exchange app and posts their public address.
NOTE: When registering your username, don't click the delegate checkbox. You don't need to register as a miner unless you want to do that.
TL;DR
It’s the first decentralized exchange that allows users to trade derivatives pegged to real world assets. These assets are known as “BitAssets”. This allows traders to “move into fiat” without actually moving into fiat and still avoid the volatility of BTC or any other crypto. Starting this Wednesday, all BitAssets will pay interest generated from exchange transaction fees. This could be as much at 10%.
Introduction to BitShares X
BitShares X is an experiment to test the economic theory behind a new kind of prediction market. This experiment creates a decentralized bank and exchange that uses a decentralized transaction ledger secured by DPOS to create fungible digital assets that are market-pegged to the value of anything from dollars, to gold, to gallons of gasoline. Like all DACs, BitShares X has shares that can be transferred between users in the same way as Bitcoin. What makes BitShares X special is that it also implements a business model similar to existing banks or brokerages.
BitShares X can create BitUSD by lending it into existence backed by collateral in the same way that the banking system lends dollars into existence today. Whereas your bank uses your house as collateral, BitShares X uses BTSX as collateral. If the value of the collateral falls relative to BitUSD then BitShares X will automatically cover your loan by selling the BTSX held as collateral for BitUSD and giving the borrower the BTSX is left over.
The reason someone borrows BitUSD is for the purpose of executing a short sell of BitUSD relative to BTSX. This works in the same manner as shorting a stock. First, you borrow the stock, then you sell it at todays high prices. If all goes well then you can buy it back tomorrow for less than you paid today, pay off your loan, and keep the profit. However, if things go against you then you will have to pay more to buy back the stock than you sold it for in the first place and thus take a loss.
BitUSD is created when two people taking opposite positions can agree to a price and the only price at which two people will agree is the current market price of USD in BTSX otherwise one individual will start out losing money. The mechanics of the market peg are very similar to the mechanics of a prediction market. Once the market has reached a consensus that BitUSD should be valued the same as a real US Dollar no one will be able to trade against that consensus without losing money. Thus the value of BitUSD today is based upon the prediction of what market participants will value BitUSD at in the future. There is only one rational way to speculate, that the consensus will hold, and that creates a self-enforcing market peg. With BitShares X all short positions (those borrowing BitUSD) must start out with enough BTSX as collateral to purchase 2x the USD borrowed. Margin calls are executed when the value of the collateral falls to 1.5x the amount borrowed. This gives the market ample opportunity to cover the short position and pay off the loan before there is insufficient collateral. In the event that the market is forced to execute a margin call, a 5% fee will be assessed. This should encourage participants to be pro-active in maintaining sufficient margin.
In the rare event that the value of BTSX falls by more than 50% in less than an hour resulting in insufficient collateral, 100% of the collateral will be used to cover as much BitUSD as possible leaving some BitUSD uncovered. The result of this price movement is that some BitUSD will be in circulation without any backing which may or may not impact the market peg of BitUSD to USD. We have two hypothesis as to the market response in this event: in one case the BitUSD will start trading at a discount proportional to the surplus BitUSD in circulation, in the other case the market expectation of a peg to USD will override any surplus supply and BitUSD will continue trading as before. This would be similar to how the dollar did not see an immediate fall to 0 value despite being removed from the gold standard.
submitted by MeTHoDx to BitcoinMarkets [link] [comments]

DEEX — New Decentralized Cryptocurrency Exchange

DEEX — New Decentralized Cryptocurrency Exchange
With the rapid growth cryptocurrencies over the last few years, the number of people showing interest in cryptocurrencies has expanded rapidly. In the initial stages of the crypto economic development, centralized exchanges were the more preferred option because they are easy to use, easy to access, and provide advanced trading functions such as margin trading, stop-loss, lending and others. However, these centralized systems are exposed to a number of risks such as security threats, unfair competition, danger of sanctions, political factors, and much more. Till date, the amount of stolen customer funds from centralized exchanges amounts to almost $500 million.
DEEX promises to solve this problem by building the world’s first decentralized exchange with functional benefits close to a centralized exchange, but without its permanent security threats and sanction risks.
What is Deex?
Deex is a decentralized cryptocurrency exchange preparing to launch in the near future. The exchange conducted a pre-sale and token sale in January 2018. As of January 16, 2018, the company’s token sale has raised over 4,000 ETH, with a total of 2.4 million deex tokens sold.
When the exchange launches, Deex plans to offer 10 cryptocurrencies available for trading, including bitcoin, Ethereum, and altcoins. The goal is to create a “reliable and convenient” platform where users can quickly trade cryptocurrencies using common fiat currency deposit methods available in their countries.
The long-term goal of Deex is to create more than just an exchange: the team wants to create an entire decentralized financial ecosystem.
The token sale for deex tokens began on January 10, 2018. A closed pre-sale took place towards the end of 2017.
The platform is actively in development by a Russia-based team.

https://preview.redd.it/n8h3tb5dqay11.jpg?width=757&format=pjpg&auto=webp&s=754151fbd54b508e40d2613cb0e9e88ab3ba5661
Who’s Behind Deex?
Deex is led by Vladislav Sapozhnikov, the founder of Preprocessing Ltd and representative of Coinsbank in Russia. Other listed members of the team include Maya Zotova-Hess, Denis Soldatov, Yuri Milyukov, Andrey Girin, Ekaterina Tarasova, and Tatyana Maksimenko.
Deex Exchange ICO Conclusion
Deex is a decentralized exchange built on the BitShares 2.0 platform. The goal of the exchange is to avoid the problems related to centralized exchanges, including security threats, unfair competition, dangers of sanctions, political factors, and more.
The platform is scheduled to be developed between February and December 2018, with a fully functional decentralized ecosystem launching in late 2018 or early 2019. To learn more about Deex, visit online today at Deex.exchange.
Official links:
Website
Telegram
Reddit
Youtube
____________________
The article is written by artur2403
submitted by artkld39 to u/artkld39 [link] [comments]

Vote for OpenLedger's BitShares Worker Proposal: Open-Source Mobile Wallet Development

Dear BitShares Community,
Having been in the blockchain development space since 2014, we have worked on different products. We believe that BitShares is one of the greatest blockchains and decentralized exchanges powered by it are the future of crypto trading.
The launching of mobile apps on top of BitShares seems to be the next natural step.
Why Does BitShares Need a Mobile App?
Mobile apps will facilitate the use of BitShares-powered trading platforms on mobile devices, making it possible to trade crypto assets anytime and anywhere. They will also promote and encourage the user adoption of BitShares.
OpenLedger’s BitShares Worker Proposal
Development of a mobile app with its source code freely available to anyone on GitHub. Being cross-platform, the app will run on iOS and Android devices. We have already developed such an app for OpenLedger DEX and published it on iTunes and Google Play. Feel free to try it right now.
Phase 1 (6 weeks)
A fully operational mobile app with multi-language support (English, Chinese, and Russian versions are available out-of-the-box). It will have the following functionality:
→ Sign-in Process:
Two user login models: Wallet and Account;
PIN or fingerprint authentication;
Easy synchronization with an existing BitShares account by scanning a QR code.
→ User Account Screen:
User’s assets list;
Balance per asset;
Total account value in the base currency (can be changed in the Settings);
Assets search;
Show/Hide assets with zero balance.
→ Available Operations:
Send;
Deposit;
Withdraw.
→ Open Orders;
→ History of transactions;
→ Settings to tailor the app according to users’ preferences and ensure a great user experience.

Phase 2 (5 months)
New features will be added:
Trade/exchange;
Multiple account support;
Favorites (accounts and assets);
Order placement;
Open Orders filtering;
Market;
Collateral settlement (margin position, settle asset, margin ranking);
Dynamic auto-complete search;
Push Notifications.

The full worker proposal can be found in here https://bitsharestalk.org/index.php?topic=27395.0
Why Vote for OpenLedger?
A proven track record of developing blockchain solutions, including BitShares-based products;
A fully operational open-source mobile app for iOS and Android with a free and open source code in just 6 weeks;
All features described in the OpenLedger’s Worker Proposal (https://bitsharestalk.org/index.php?topic=27395.0) will be available in 6 months;
There’s our own BitShares-powered mobile app in place. It is already approved by iTunes and Google Play. The proposed app will have the same functionality after Phase 1.
Vote for us today: openledger_mobile_apps_ph1 and openledger_mobile_apps_ph2!
Get an open-source mobile app faster than you could imagine!
Download our app now to experience how the new BitShares mobile wallet will look like!
https://itunes.apple.com/by/app/openledger-dex-mobile-wallet/id1436296915?mt=8
https://play.google.com/store/apps/details?id=com.openledgerpurern
submitted by ccedk_pro to BitShares [link] [comments]

How Market Pegged Assets work: a rough draft

I find it helps me to understand how things work if I try to explain them to other people. Here's my attempt to explain how Market Pegged Assets (such as bitUSD or bitGold) work. Questions, comments, suggestions improvements welcome.
Shorting 101
First, in order to understand how Bitshares Market Pegged Assets work, it helps to understand how short selling stocks works.
Short selling works as follows: you borrow a stock, sell the stock, and then buy the stock back to return it to the lender.
Short sellers make money by betting that the stock they sell will drop in price. If the stock drops after selling, the short seller buys it back at a lower price and returns it to the lender.
For example, if an investor thinks that Tesla, Inc. (TSLA) is overvalued at $300 per share, and is going to drop in price, he may borrow 10 shares of TSLA from his broker and sell it for the current market price of $300.
If the stock goes down to $200, he could then buy the 10 shares back at this price, return the shares to his broker, and net a profit of $100.00 per share: $300 (selling price) - $200 (buying price)
However, if TSLA's price rises to $400, the investor would net a loss of $100 per share: $300 (selling price) - $400 (buying price)
To ensure that they’re paid back for the stock they’ve lent to a short seller, brokerages require short sellers to put up sufficient collateral to buy back the stock. To account for the possibility that the stock’s value could increase a large amount rapidly, brokerages typically require at least collateral worth at least 150% of current value of the stock. (In the US, short sellers are required by law (Regulation T) to deposit at least 150% of the value of the shorted stock.)
Short sellers must also keep the margin account topped up by a certain percentage (called the maintenance margin) so long as they’re shorting the stock. Typically, brokerages require a maintenance margin of 130%. If the short seller cannot meet the maintenance margin requirements, the brokerage forces the short seller to buy back the stock with their remaining collateral and return the stock to the brokerage.
Market Pegged Assets
Now let’s see how short selling is related to the creation of Market Pegged Assets.
Suppose that there exist two investors, one named Dwight and another named Creed.
Suppose that Dwight is willing to give up some gains in exchange for lower volatility.
Suppose that Creed believes that the the value of the dollar relative to BTS is going to decline. Therefore, just like TSLA in the Shorting 101 example, Creed wants to short sell the dollar.
Collateral requirements
Before he can short sell the dollar, Creed must "borrow" it first, just like a short seller borrows shares of Tesla from his brokerage.
So the Bitshares network creates a token called bitUSD. By definition, one bitUSD is equal to one dollar’s worth of BTS.
Creed can then “borrow” this bitUSD from the Bitshares network.
However, just as with a shorted stock, Creed must first put up collateral sufficient to repay the Bitshares network for the bitUSD he borrows. The Bitshares network currently requires 175% of the value of each bitAsset as the initial margin collateral.
Let’s suppose that at the time Creed creates his bitUSD, the dollar is trading at exactly one BTS/dollar. In order to avoid an immediate margin call, Creed puts up 2 BTS as collateral.
The Bitshares network will then issue Creed one bitUSD, which Creed can then trade for other cryptocurrencies, fiat, or other goods and services. For example, he might sell his bitUSD to Dwight at a slight premium of 1.05 BTS/bitUSD.
Example #1: bitUSD/BTS decreases
Now suppose that after a few months, Creed's prediction has proven correct: the dollar has declined in value relative to BTS, and is now worth only 0.5 BTS/dollar.
To get his collateral back, Creed need only spend 0.5 BTS, to buy one bitUSD and redeem it with the Bitshares network.
Upon redeeming his bitUSD, the BitShares network destroys the bitUSD token, and releases the two BTS it held as collateral. Creed now owns 2.55 BTS: 2 BTS (his original collateral) + 1.05 BTS (the amount he got for selling his bitUSD to Dwight) - 0.5 BTS (the cost to buy back one bitUSD).
In dollar terms, Dwights BTS are now worth $5.10, or $2.55/BTS: $4 from the increase in value of his collateral (which increased in value from $2 to $4), $1 from shorting the dollar (0.50 * $2), and $0.10 from the slight premium he was able to make by selling his bitUSD to Dwight.
Therefore, his return/BTS is 155%: ($2.55 - $1.00)/$1.00*100
Example #2: bitUSD/BTS increases
Conversely, let’s suppose Creed was wrong, and the value of the dollar increases relative to BTS.
Suppose that the BTS/dollar drops such that Creed's collateral is now only worth $1.75. The Bitshares network requires a maintenance margin of 175%, so Creed must add enough BTS to his margin account to exceed 175% of the value of the bitUSD he’s been issued. In addition, to encourage bitAsset issuers to never let their margin get close to the maintenance margin threshold, the Bitshares network assesses a 5% fee if it is forced to execute a margin call.
If Creed cannot meet his maintenance margin requirements, the Bitshares network uses his remaining margin to buy back enough bitUSD to liquidate his position. Buying back bitUSD reduces the supply, which increases the price of the remaining bitUSD, thus keeping the value close to the peg.
Example #3: Black Swan Event
In the rare event that the value of BTS falls by more than 75% in less than an hour—thereby resulting in insufficient collateral--100% of the remaining collateral would be used to buy back as much bitUSD as possible. However, this would leave some bitUSD without any backing, which would likely uncouple the peg.
submitted by crasch4 to BitShares [link] [comments]

What if you had all the benefits of Bitcoin with the **price stability** of gold? It now exists and it’s called bitGOLD. Skeptical? I'll give you $1 worth of gold which at current Kitco spot rate is 0.000827 oz. Come make history with us!

Hello /CryptoCurrency,
I’m here to explain what bitGOLD is and why you should pay attention to it.
BitGOLD is exactly like Bitcoin (you hold the private keys) only it’s pegged to the value of real gold. 1 ounce of bitGOLD will always equal the value of 1 ounce of real gold. That means if real gold goes up in value, so does bitGOLD (and vice versa). Think of it as a cryptographic derivative pegged to the value of a real world asset. There is also bitUSD, bitEUR and bitBTC (theoretically any real world asset can be used in this way, even silver, oil and McDonalds big macs - as long as it has a price and is quantifiable).
The main issue with Bitcoin in terms of mainstream adoption has always been its volatility. It goes up and down in value so much it’s impossible to use as a currency. The ideal solution would be to have the best of both worlds: a crypto that you hold the private keys to but is also pegged to the value of either precious metals like gold or a fiat currency like USD.
PLEASE DO NOT DISMISS THIS IDEA JUST BECAUSE YOU MAY CURRENTLY HOLD BITCOIN
For the remainder of this day I will be handing out $1 worth of bitGOLD to all interested redditors (no sock puppets please, I'll know).
This is what you need to do:
STEP #1: Click here to download the Bitshares client.
STEP #2: Locate your public key here and copy and paste it as a reply to >this thread.
When you do this I will reply with further instructions.
Please keep in mind the BitShares software is still in BETA so bear with these complicated steps. They will be phased out very soon.
I truly believe this is the next step in the future of peer-to-peer money and would be more than happy to answer any questions you may have. I understand many of you will be (rightfully) skeptical of this new technology. I am prepared to answer any question, no matter how hard you think it is.
For more technical details on how market pegged assets work, please go to wiki.bitshares.org (an official whitepaper is coming soon).
If you are a member of the press please contact press@nullstreet.com for direct communication with our marketing division.
Here’s the technical TL;DR for those interested: (this uses bitUSD as an example, not bitGOLD)
BitShares is an experiment to test the economic theory behind a new kind of prediction market. This experiment creates a decentralized bank and exchange that uses a decentralized transaction ledger secured by DPOS to create fungible digital assets that are market-pegged to the value of anything from dollars, to gold, to gallons of gasoline. BitShares has shares that can be transferred between users in the same way as Bitcoin. What makes BitShares special is that it also implements a business model similar to existing banks or brokerages.
BitShares can create BitUSD by lending it into existence backed by collateral in the same way that the banking system lends dollars into existence today. Whereas your bank uses your house as collateral, BitShares uses BTS as collateral. Short orders are forced to cover when 66% of their collateral is required to cover, leaving the short with 33% of the collateral minus a 5% fee.
The reason someone borrows BitUSD is for the purpose of executing a short sell of BitUSD relative to BTS. This works in the same manner as shorting a stock. First, you borrow the stock, then you sell it at todays high prices. If all goes well then you can buy it back tomorrow for less than you paid today, pay off your loan, and keep the profit. However, if things go against you then you will have to pay more to buy back the stock than you sold it for in the first place and thus take a loss.
BitUSD is created when two people taking opposite positions can agree to a price and the only price at which two people will agree is the current market price of USD in BTS otherwise one individual will start out losing money. The mechanics of the market peg are very similar to the mechanics of a prediction market. Once the market has reached a consensus that BitUSD should be valued the same as a real US Dollar no one will be able to trade against that consensus without losing money. Thus the value of BitUSD today is based upon the prediction of what market participants will value BitUSD at in the future. There is only one rational way to speculate, that the consensus will hold, and that creates a self-enforcing market peg. With BitShares all short positions (those borrowing BitUSD) must start out with enough BTS as collateral to purchase 2x the USD borrowed. Margin calls are executed when the value of the collateral falls to 1.5x the amount borrowed. This gives the market ample opportunity to cover the short position and pay off the loan before there is insufficient collateral. In the event that the market is forced to execute a margin call, a 5% fee will be assessed. This should encourage participants to be pro-active in maintaining sufficient margin.
In the rare event that the value of BTS falls by more than 50% in less than an hour resulting in insufficient collateral, 100% of the collateral will be used to cover as much BitUSD as possible leaving some BitUSD uncovered. The result of this price movement is that some BitUSD will be in circulation without any backing which may or may not impact the market peg of BitUSD to USD. We have two hypothesis as to the market response in this event: in one case the BitUSD will start trading at a discount proportional to the surplus BitUSD in circulation, in the other case the market expectation of a peg to USD will override any surplus supply and BitUSD will continue trading as before. This would be similar to how the dollar did not see an immediate fall to 0 value despite being removed from the gold standard.
submitted by MeTHoDx to CryptoCurrency [link] [comments]

Top FAQs About Decentralised Exchanges

source: https://steemit.com/faq/@bitspark/top-faqs-about-decentralised-exchanges
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What is a DEX?

DEX is short for decentralised exchange. It is essentially a platform where people can trade cryptocurrencies without an intermediary managing the ledger or controlling user funds.

How is a DEX different from a CEX?‍

The vast majority of cryptocurrency trading currently still takes place on centralised exchanges (CEXs). On these platforms traders are serviced by central intermediaries.
Whereas CEXs such as Coinbase or Kraken require a great deal of personal information and manage your accounts, making your funds vulnerable to theft, DEXs allow for direct, hassle-free trading, with users responsible for their own funds’ safe-keeping.

Why are DEXs important?

DEXs fulfil the ideological purpose of crypto-economics which is to increase financial freedom by decreasing dependency through decentralisation.
Also, with approximately one in sixteen Bitcoins having been stolen and an estimated third of millennials invested in cryptocurrencies, decentralising the way we trade is incredibly important to optimise safety.

What are the core features of a DEX?

In general terms, crypto exchanges have three essential functions: fund management, order books, crypto transactions.
For an exchange to be truly decentralised, each of these functions must operate in a decentralised manner:

What are some of the main benefits of DEXs?

Apart from improving safety by keeping users in control of their own funds and being much less vulnerable to hacks, DEXs offer a high degree of anonymity requiring much less personal information than CEXs.
In addition, on DEXs there is no single point of failure. Any rollouts or updates occur on a node-by-node basis, meaning that even if individual nodes go down due to maintenance or for other reasons, the remaining nodes keep the DEX live.

What are some of the drawbacks of DEXs?

As DEXs are more complicated than CEXs, relatively new and slower to develop, there are some drawbacks that still need to be resolved.
Not all DEXs are equally user-friendly. While creating an account on a CEX is relatively straightforward, DEXs often require connecting to a dApp or installing a standalone DEX client. Also, while CEXs generally offer advanced tools such as margin trading, for now most DEXs are restricted to buying and selling only.
Because DEXs represent only a tiny portion of the total crypto-market’s trading volume, liquidity is generally too low for high-volume trading. Currently, DEXs are better suited for low-volume trading of popular coins.

Which cryptocurrencies can be traded on a DEX?

It is helpful to bear in mind that there are over 1500 different cryptocurrencies on the market and different DEXs make different selections as to which cryptocurrencies can be traded. This selection is not determined, but definitely influenced by the specific blockchain upon which the DEX is built.
For example, EtherDelta enables trade of over 240 coins, all of which are compliant with Ethereum token standard (ERC20).
BitShares, besides enabling trade in Bitcoin or Ethereum, focusses on trading BitAssets, which are stablecoins pegged to a real-life assets such as BitUSD, BitEUR, BitGold, etc.

How best to optimise security when trading on a DEX?

When it comes to cryptocurrencies it is good to consider three layers where security is at stake: coins and tokens, exchanges, and wallets.
When selecting coins to trade with, make sure that they are in no way centralised and their protocol does not allow any authority to compromise distributed consensus.
DEXs are safer than CEXs but bear in mind that every exchange is situated on a spectrum with some DEXs more decentralised than others.
When trading on a DEX, be advised to keep a limited amount (20%) in hot wallets and the rest secured in cold wallets. Also, be sure to change passwords frequently, preferably using a two-factor authentication method (2FA).
Extra measures include dedicating a device, such as a smartphone or PC, to the sole use of trading cryptocurrencies; avoiding public WI-FI while trading; and having devices encrypted (VeraCrypt, FileCrypt).
As a rule of thumb: at each layer, go with the principle of decentralisation.

What are some of the most promising up-and-coming DEXs?

DEXs are a relatively new phenomenon compared to their centralised counterparts. The market for DEXs is developing and growing at a rapid pace.
Some up-and-coming DEXs include 0xProject, which is actually a platform for DEXs such as Radar Relay and EthFinex; EtherDelta, one of the most popular DEXs around; Kyber Network; Waves; and our very own SparkDex, which is purpose built for pegged cryptocurrencies.
For more a more in-depth discussion about these up-and-coming DEXs read our dedicated article here.
submitted by kryptosapien to CryptoCurrency [link] [comments]

Vote for OpenLedger's BitShares Worker Proposal: Open-Source Mobile Wallet Development

Dear BitShares Community,
Having been in the blockchain development space since 2014, we have worked on different products. We believe that BitShares is one of the greatest blockchains and decentralized exchanges powered by it are the future of crypto trading.
The launching of mobile apps on top of BitShares seems to be the next natural step.
Why Does BitShares Need a Mobile App?
Mobile apps will facilitate the use of BitShares-powered trading platforms on mobile devices, making it possible to trade crypto assets anytime and anywhere. They will also promote and encourage the user adoption of BitShares.
OpenLedger’s BitShares Worker Proposal
Development of a mobile app with its source code freely available to anyone on GitHub. Being cross-platform, the app will run on iOS and Android devices. We have already developed such an app for OpenLedger DEX and published it on iTunes and Google Play. Feel free to try it right now.
Phase 1 (6 weeks)
A fully operational mobile app with multi-language support (English, Chinese, and Russian versions are available out-of-the-box). It will have the following functionality:
→ Sign-in Process:
Two user login models: Wallet and Account;
PIN or fingerprint authentication;
Easy synchronization with an existing BitShares account by scanning a QR code.
→ User Account Screen:
User’s assets list;
Balance per asset;
Total account value in the base currency (can be changed in the Settings);
Assets search;
Show/Hide assets with zero balance.
→ Available Operations:
Send;
Deposit;
Withdraw.
→ Open Orders;
→ History of transactions;
→ Settings to tailor the app according to users’ preferences and ensure a great user experience.

Phase 2 (5 months)
New features will be added:
Trade/exchange;
Multiple account support;
Favorites (accounts and assets);
Order placement;
Open Orders filtering;
Market;
Collateral settlement (margin position, settle asset, margin ranking);
Dynamic auto-complete search;
Push Notifications.

The full worker proposal can be found in here https://bitsharestalk.org/index.php?topic=27395.0
Why Vote for OpenLedger?
A proven track record of developing blockchain solutions, including BitShares-based products;
A fully operational open-source mobile app for iOS and Android with a free and open source code in just 6 weeks;
All features described in the OpenLedger’s Worker Proposal (https://bitsharestalk.org/index.php?topic=27395.0) will be available in 6 months;
There’s our own BitShares-powered mobile app in place. It is already approved by iTunes and Google Play. The proposed app will have the same functionality after Phase 1.
Vote for us today: openledger_mobile_apps_ph1 and openledger_mobile_apps_ph2!
Get an open-source mobile app faster than you could imagine!
Download our app now to experience how the new BitShares mobile wallet will look like!
https://itunes.apple.com/by/app/openledger-dex-mobile-wallet/id1436296915?mt=8
https://play.google.com/store/apps/details?id=com.openledgerpurern
submitted by ccedk_pro to OpenLedgerDEX [link] [comments]

Alchemint integration Switcheo / NEX

Hi, just looked at Alchemints "competitor" collateral backed stablecoins:
Namely: Bitshares Maker Sweetbridge Havven Augmint
One key thing that struck me while looking at the biggest one :
BitShares lets its users borrow/create bitUSD (works similar to Alchemint) within their decentralised exchange.
It would be a real game changer for the NEO smart economy if there would be a counterpart to that.
As Alchemint has no plan of launching an exchange. Wouldn't t be a good idea to maybe work together with the team of SwitcheoNetwork to implement this feature for NEO users?
If both teams would decide to work together, it means that features like Margin Trading, Lending as well as increased liquidity would be added to SwitcheoNetwork in addition to cross chain swaps which they are already working on.
(I took Switcheo as an example for any NEO DEX, as its the only live exchange we have right now)
What do you guys think?
submitted by MoneroPanda to Alchemint [link] [comments]

How we get Rekt by Bitshares

Hey guys,
We recently saw Bitshares at 1500, here i will try to explain you on my opinion how it could hapenned.. Personally i have a huge loss on Bitshares around 75% of my capital, yes i opened huge long on Poloniex and didn`t stop loss...
So what`s hapened? First of all Bitshares would not be traded on China anymore, so me have less demand on the market. How we fall to 1500 ?
I think there are 3 factors here : 1. Chineese dump 2. Bitcoin Correction 3. Margin Trading Automatic closing Long positions.
I will go directly to point 3 > We all know that 2800, 2900, 3000 was good price for BTS So people like me opened Long Positions on this area. So when we had less demand on BTS due to BTC correction, price starts to move down and occur to closing Long positions. In order to close your long position or stop loss you have to sell, and it`s triggered a huge wave of sell and olso liquidation of long positions.
How we get 2500 so fast ?
People who opened short positions starts to close it after Bull RUN, thats how the price move up so fast.
I get rekt 2500$ Loss on this move feels bad man.
If someone could donate would be cool...
submitted by oooStrateg to BitShares [link] [comments]

DEXBot On The BitShares Hangout Go Bitshares - YouTube Margin Trading - How to Borrow USD to then Buy more EOS Buy When There's Blood in the Streets Everyday Crypto #020 - Shorting bitAssets on Bitshares

Margin trading became highly popular among ordinal markets. Perhaps, many of you not only have heard but also have already tried to trade through Forex currency market brokers. Trading on margin will now be available to all Bitshares DEX users increasing volumes Execution of the P2P swap logic on a DEX is fundamentally better than a CEX as it removes the trusted BSIP 70: Peer-to-Peer Leveraged Trading. Introduction of peer-to-peer lending markets that allow borrowing and margin trading on the BitShares DEX, while the lender gets paid interest and is protected by automatic margin call mechanisms. BSIP 62: Close margin position There are currently 28 BitShares exchanges where you can buy, sell and trade BitShares (BTS) with a total 24-hour volume of $ 9.04M. You can buy BitShares with USD, KRW, IDR and 1 more fiat currencies. BitShares can be exchanged with 9 cryptocurrencies. You can also buy BitShares with Tether, QCash and Binance USD stablecoins. The best BitShares exchange for trading is Binance. Margin trading is a practice that allows trading assets by using additional funds provided by a third party. Margin accounts give traders access to more capital. This means that traders can leverage their positions.

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DEXBot On The BitShares Hangout

Margin Trading EOS Interest Free on Bitshares DEX - Duration: 5 minutes, 5 seconds. 991 views; 2 years ago; 5:05. How Fast is Bitshares? World's Fastest Blockchain & DEX - Duration: 5 minutes, 5 ... In this video I show you how to create a wallet on the Bitshares Decentralized Exchange. ... Beginner Swing Trading with the TTM Squeeze ... Margin Trading Interest Free Loans on the Bitshares ... Margin Trading EOS Interest Free on Bitshares DEX - Duration: 5:05. Go Bitshares 991 views. 5:05. Make a Bitmoji Scene in Google Slides! - Duration: 17:05. EZ EdTech! Margin Trading Interest Free Loans on the Bitshares DEX - Duration: 9:06. ... Margin Trading EOS Interest Free on Bitshares DEX - Duration: 5:05. Go Bitshares 991 views. 5:05. This is one of the marvellous things about the Bitshares DEX. It's margin trading interest free. It's also like being your own bank and instantly approving your own line of credit interest free ...

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