Quote from: l4p7 on March 27, 2014, 03:33:29 PM

Quote from: xnova on March 27, 2014, 03:25:03 PM

Quote from: techo051 on March 27, 2014, 02:19:52 PM

Quote from: l4p7 on March 27, 2014, 01:58:25 PM

Quote from: CryptoFinanceUK on March 27, 2014, 01:52:49 PM

Quote from: l4p7 on March 27, 2014, 11:52:34 AM

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.

There is nothing to stop people from issuing LTC (or whatever) trading derivatives, similar to how XBTC has been created on Counterparty as essentially a proxy for BTC. We encourage folks in the community to come up with and enact these kinds of use-cases (in a thoughtful, responsible manner, not unlike how XBTC was created and is operated).

What I meant was to (medium/long term option) hardcode the need for collateral (xcp as collateral)...

Does any sort of collateralization requirement denominated in XCP limit the total amount of assets that can be traded on the exchange to the market cap of XCP? How do you work out the margin requirement? Or is the idea that any asset in one's possession can be used as collateral, but represented as an XCP equivalent?