Re: [ANN][XCP] Counterparty Protocol, Client and Coin (built on Bitcoin) - Official
What about requiring the issuer to put collateral (xcp) into the system. For example: I issue LTC within Counterparty and have to put up xcp worth the amount of LTC that is bought from me. This would make the system more safe/reliable and boost the demand for xcp.
Funnily enough, I just posted a similar idea in the main Counterparty forums.
+1
@xnova, thanks for your post above. Any comment form developers on the collateral idea? Ad- and disadvantages? Posibility of implementation?
I like this idea a lot. It's almost like a margin call, where the issuer needs to keep putting up collateral as the value changes. Maybe the details about max funding amount, duration, etc. could be specified in new asset fields? If the issuer didnt want to be long XCP vs. the other asset they could also raise money on the DEX, buy LTC (or whatever) with the XCP they raise and keep that as side collateral so that they are never better or worse off as the asset changes in value.