Bitstocks decentralized bank
x protocol: a point-to-point open protocol running on Ethereum. The protocol aims to become a general open standard, as a basic mole that can be combined with other protocols to drive more and more complex blockchain applications. However, Ethereum is famous for its congestion, so its current situation is not very good
loopring
Road printing protocol: decentralized transaction protocol of class X. The on chain smart contract is responsible for asset custody, matching and transaction, and the off chain smart contract is responsible for order matching. It has an on chain trading loop matching technology, which encourages the exchange to match the transaction path with the maximum discount, so as to save transaction costs for users and make the exchange profitable at the same time. But on the other hand, it also increases the complexity of smart contract and the execution cost of Ethereum transaction, and the effect in practical application remains to be seen
there are also kyber, idex, bitstocks, etc. decentralized exchanges are the trend in the future, so there are still quite a few in the market. But comparatively speaking, I still think whaleex is the most reliable.
1. Enter the game and choose a place at will
dividend, a part of mining reward and transaction cost, is distributed according to the proportion of the number of bitstocks owned to the number of existing bitstocks
bitasset is a kind of asset with collateral, which is supported by bitshares with a margin ratio of 1.5 to 2 times or higher. It has all replaceable, divisible and transferable assets of bitshares and can obtain dividends. All dividends are generated by collateral and paid in the form of bitshares
margin: an asset whose value exceeds the current market value of a bit asset as a support
bitusd, a kind of asset supported by bitstocks, whose value is highly related to the value of US dollar through self imposed market feedback mechanism
bit x (bitx) - a general way to name bit assets, which is based on the self imposed market feedback mechanism and is related to the realized value of the assets associated with it (such as bitgold, bitapple, etc.)
blockchain: a global synchronous, block structured and orderly trading account
output: the balance of the trading account that is limited to how it will be used under specific conditions
transaction: matching a group of unmatched output orders with another group of unmatched output orders under the condition of meeting the output matching conditions and other block chain rules.
Bitstock x can be called an experiment, which uses a new type of forecast market to test economic theory. This experiment creates a decentralized bank and exchange, which creates tradable digital assets by using the distributed transaction ledger created by dpos algorithm, and anchors the price of any target object through the market, such as US dollar, gold, gasoline, etc. Like all DACs, bitcoin x issues shares and can circulate among users, just like buying and selling bitcoin. In addition, the unique feature of bitstock x is that it implements a business model similar to that of traditional banking or stockbroker
just as today's banking system uses collateral to cast us dollars in the form of loans, bitusd can also be cast by bitstock X using collateral. Unlike traditional banks, which use real estate as collateral to lend us dollars, bitstock x will use btsx (shares) as collateral to lend bitusd. If the value of the collateral falls compared with the value of bitusd, bitx will automatically sell part of the mortgaged btsx to make up for the deficit (compulsory closing), and return the remaining btsx to the mortgagor
from the perspective of investment, the mortgagor borrows bitusd to short the value of bitusd corresponding to btsx, which is like shorting a stock. First, you borrow a stock, and then you sell it at the high price of the day. If all goes well and the share price falls, tomorrow you will be able to buy back the shares at a lower price than when you sold them, and then you will be able to keep a surplus after paying off the borrowed notes. On the contrary, if the stock price rises, you have to buy back the stock at a higher price than when you sold it, so you will suffer the loss
bitusd will be successfully cast because both short and long sides have reached a consensus on a certain price, which can only be the market price of USD (US dollar) corresponding to btsx, otherwise one of them will bear the loss from the beginning. It can be said that the market anchoring mechanism is very similar to the forecasting market mechanism. Once there is a consensus in the market that bitusd should be equivalent to the real US dollar, those who violate this consensus will have to lose money. Therefore, the value of today's bitusd is based on the market participants' predictions of tomorrow's bitusd value. So it can be considered that strictly following the market consensus is the only reasonable way of forecasting, and at the same time, strengthening the market anchoring mechanism
in bitstock x, all short positions (referred to as borrowed bitusd) must have btsx equivalent to twice the US dollar price as collateral (margin) from the beginning. When the value of the collateral falls to 1.5 times, the position needs to be covered. This gives the market ample opportunity to close the short position and pay off the loan before the collateral is insufficient. When the market has to enforce compulsory replenishment, a 5% fee will be charged. This will encourage participants to actively maintain sufficient collateral in their hands
under extremely rare conditions, the value of btsx may depreciate by more than half within an hour, resulting in insufficient collateral. At this time, all the collateral in the system will be used to make up for the deficit caused by casting bitusd as much as possible, but there may still be insufficient collateral for some bitusd. As a result, there will be some bitusd without collateral endorsement in the market, and whether this extreme situation can affect the anchoring between bitusd and US dollar remains to be verified. We have two hypotheses about the market reaction at this time: 1) bitusd will trade at a discount in proportion to the quantity remaining in circulation; 2) The consensus expectation for bitusd to anchor US dollar will exceed the supply of rendant undeclared positions, making the trading circulation of bitusd as usual. A similar situation is that when the dollar abandoned the gold standard, its value did not quickly fall to nothing
Bitstock is an open source distributed trading system that supports valuable physical objects such as virtual currency, legal currency and precious metals. The system can mainly provide a solution of decentralized exchange. Let everyone be an exchange. The system is launched by Invictus