Before everybody get unnecessarily tense, if you are not an experimented trader, borrowing and selling Bit20, there is no change for you. You still can buy and sell Bit20 as you like.
What is a black swan ?
As you all know now, Bitshares smartcoin (for ex. Bit20) are created by borrowers who lock 200% of its value in collateral (in BTS). Then, they sell those assets on the market creating the current supply.
What happens when BTS go down and the collateral shrinks?
Automatically, when the collateral goes under 175% of the value, the blockchain creates a margin call, buy back the asset in the market and cover the loan.
What happens if there is too many people trying to buy the asset and the margin call is left behind buyers?
The collateral keeps going down.
To avoid a situation in which the collateral would be lower than 100%, the blockchain has a big security. The security consists in converting all the assets in their value in BTS and block the "borrowing" function. The market remains alive, but there is no more loan allowed. This event is called a black swan and we just have experimented it on our market.
What caused it ?
We were in testing phase with only 3 witnesses sending the price feed in the DEX. It was done purposefully until we were comfortable to go professional mode with much more witnesses and different script versions producing the price feed.
The website coincap.io has provided wrong information for several markets (LTC, XMR, ZEC, STEEM et LSK) during several hours. The witnesses used, as part of their data stream, the information from there and their price feed composed by those prices has increased by around 100%. When the second of the 3 witnesses sent the wrong price feed, the median between the 3 witnesses price increase a lot, the collaterals weren't big enough and it caused the black swan.
We are at the moment in contact with the witnesses to improve the scripts so this event couldn't happen again. A security will be implemented in the code.
What are the direct consequences?
- Traders won't be able to borrow the asset during the next weeks
- As a consequence of the previous point, the total supply won't grow until the market is re-unable.
When will the market be back with all its fontionnalities?
The BSIP18 (BitShares Improvement Proposal) is currently voted in by BTS holders and will be implemented soon. We could see this market fully fonctional again in no more than 8 weeks.
Details on the BSIP18 :
BSIP18 : http://www.bitshares.foundation/workers/2017-07-peter-conrad
Details on the margin call mechanics :
http://docs.bitshares.eu/bitshares/user/dex-margin-mechanics.html
Details on the black swan :
http://bytemaster.github.io/article/2015/01/27/BitAssets-and-Black-Swan-Events/
It looks like GOLD has black-swanned too, if I'm reading it correctly: https://cryptofresh.com/tx/49f4afb4cf6a76854daf65a5dc8a4f4b120b5b30
I tried to borrow, and it says it has settled.
You are reading correctly.
Difference between Silver (not black-swanned) and Gold (just black-swanned)
Silver market : https://cryptofresh.com/a/SILVER
You see SILVER Debt Positions and Collateral/Debt column.
Gold market : https://cryptofresh.com/a/GOLD
No more GOLD Debt Positions nor Collateral/Debt column.
seeing this makes me wish we had SMTs alerady so we can make Gold bitgold style wrappers for USD and gold an dyeahh man STEEM gold!!!! redeamablke for atcual gold coins!
As an avid fan of Bittwenty, I look forward to a more liquid market for all to enjoy in the future.
Hi friend, very good !!!!!
You would help me with a vote in my post., Thanks !!! ;)
Your going to have to do a lot better than that to succeed here bro.
lo siento cambiare mi estrategia en la plataforma soy nuevo y todavia me falta mucho por aprender, agradesco el consejo, soy de Argentina y no hablo ingles uso traductor., que tenga un hermoso dia, saludos desde Argentina!!!
I'm sorry, I'll change my strategy on the platform. I'm new and I still have a lot to learn, I'm grateful for the advice, I'm from Argentina and I do not speak English, I use a translator, have a beautiful day, greetings from Argentina !!!
Yes I am only trying to help you succeed here on Steemit. I am very successful and wants to help you as well.
Best Regards~*~
Thank you!!!!
Your welcome!
Like the picture ;-)>
Blackswan is good if you have the right position
Nice post
@abutaleb365
good all details r get in this post @estefantt