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bsip34: wording change and text reorganization

bsip53
abitmore 2018-02-18 21:56:55 +00:00
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bsip-0034.md
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@ -10,6 +10,19 @@
# Abstract
Currently, in BitShares, a short position may be margin called only when both
two requirements are met:
* call price is above or equal to median price feed
* no limit order on the book is buying collateral with price higher than the
short position's call price
This behavior has led to certain confusion and anger among market participants.
This BSIP proposes a new behavior to improve the situation: drop the second
requirement, trigger margin call when the first requirement is met.
# Motivation
To avoid ambiguity, in this article, all prices are in terms of
`debt asset / collateral asset`, aka how much debt asset per collateral
asset. A bid is an order to buy collateral asset with debt asset.
@ -41,21 +54,15 @@ This mechanism has led to certain confusion and anger among market participants.
* market manipulators / arbitrage traders have more chances to force borrowers
to sell collaterals at lower price
This BSIP proposes a new behavior to improve the situation: derive the fair
collateral price only from price feeds.
# Motivation
Make the exchange system easier to understand and more user-friendly.
This BSIP effectively proposes a new behavior: derive the fair collateral price
only from price feeds.
# Rationale
Since price feeds are provided by a set of chosen producers, the median price
feed is usually considered trustworthy. On the other hand, instant market
price is not as reliable, especially for the markets with poor depth, so it's
a rather limited supplement for calculating collateral price. Depth of internal
markets could be greatly improved in the future, however price feed producers
can always adjust their algorithm to include internal market data.
a rather limited supplement for calculating collateral price.
At this moment, changing the rule to only use median price feed will clear away
the confusion the end users may have, while still keeping the derived collateral