From 1dfa72e760e19471f733d9f3f033151fe5f069f2 Mon Sep 17 00:00:00 2001 From: Abit Date: Mon, 30 Sep 2019 22:51:54 +0200 Subject: [PATCH 1/3] Create bsip-0077.md --- bsip-0077.md | 74 ++++++++++++++++++++++++++++++++++++++++++++++++++++ 1 file changed, 74 insertions(+) create mode 100644 bsip-0077.md diff --git a/bsip-0077.md b/bsip-0077.md new file mode 100644 index 0000000..20b5f73 --- /dev/null +++ b/bsip-0077.md @@ -0,0 +1,74 @@ + BSIP: 0077 + Title: Require Higher CR When Creating/Adjusting Debt Positions + Authors: Abit More + @shulthz + Status: Draft + Type: Protocol + Created: 2019-09-30 + +# Abstract + +This BSIP proposes a protocol change which aims to improve overall collaretal ratio (CR) of smartcoins. + +# Motivation + +Risk-loving traders tend to borrow as much debt as possible with as little collateral as possible, +which impacts overall CR of that smartcoin. Smartcoin owners would like to have a tool to counter +this behavior. + +# Rationale + +Requiring a higher CR for new debt positions would introduce a buffer thus would increase the +stability of the smartcoin. + +# Specification + +Add one parameter "Initial Collateral Ratio" (ICR) to each smartcoin asset, which can be updated by the asset owner. + +When adjusting a position, apply [BSIP30](https://github.com/bitshares/bsips/blob/master/bsip-0030.md) +if current CR is lower than ICR but not MCR. + +Before the protocol upgrade: +``` +when creating a new debt position + require CR > MCR + +when adjusting a debt position + if new CR <= MCR + require CR increased and debt not increased + +when current CR <= MCR + trigger margin call +``` + +After the protocol upgrade: +``` +Require ICR >= MCR + +when creating a new debt position + require CR > ICR + +when adjusting a debt position + if new CR <= ICR + require CR increased and debt not increased + +when current CR <= MCR + trigger margin call +``` + +Note: logic around *target collateral ratio* (TCR) is not affected. + +# Discussion + +This BSIP introduces a new tool for smartcoin asset owners to fine tune their assets. +Having an ICR greater than MCR would probably result in less risk-loving traders borrowing that +smartcoin, thus may lead to fewer market activities and worse liquidity. It's up to the asset owners +to decide whether to use this tool. + +# References +* https://github.com/bitshares/bsips/issues/129#issuecomment-483937118 +* https://github.com/bitshares/bsips/issues/96#issuecomment-484126930 +* https://bitsharestalk.org/index.php?topic=29638.0 + +# Copyright +This document is placed in the public domain. From 982e69e3045c1a716f8857ff39d5c440429ae79a Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Stefan=20Schie=C3=9Fl?= Date: Tue, 28 Jan 2020 15:24:57 +0100 Subject: [PATCH 2/3] status=accepted --- bsip-0077.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/bsip-0077.md b/bsip-0077.md index 20b5f73..3f042b1 100644 --- a/bsip-0077.md +++ b/bsip-0077.md @@ -1,8 +1,8 @@ BSIP: 0077 - Title: Require Higher CR When Creating/Adjusting Debt Positions + Title: Require Higher CR When Creating / Adjusting Debt Positions Authors: Abit More @shulthz - Status: Draft + Status: Accept Type: Protocol Created: 2019-09-30 From 812190c813c6246979134792923060ebdb7130e5 Mon Sep 17 00:00:00 2001 From: Stefan Schiessl Date: Tue, 28 Jan 2020 15:28:04 +0100 Subject: [PATCH 3/3] set status in readme Signed-off-by: Stefan Schiessl --- README.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/README.md b/README.md index b69140b..6a30f49 100644 --- a/README.md +++ b/README.md @@ -82,7 +82,7 @@ Number | Title | [74](bsip-0074.md) | Margin Call Fee Ratio | Jerry Liu | Protocol | Draft [75](https://github.com/bitshares/bsips/issues/96) | Asset Owner Defines MCR and MSSR Values | John Jones | Protocol | Draft [76](https://github.com/bitshares/bsips/issues/221) | Committee-Defined SmartAsset Collateral Threshold | Abit More | Informational | Draft -[77](https://github.com/bitshares/bsips/issues/161) | Require Higher CR When Creating/Adjusting Debt Positions | Abit More | Protocol | Draft +[77](https://github.com/bitshares/bsips/issues/161) | Require Higher CR When Creating / Adjusting Debt Positions | Abit More | Protocol | Accepted [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