Currently the total supply of bitcny, bitusd, bitbtc, biteur is less than $400,000. That is obviously very unfortunate. One way to increase the supply is to give incentives to bitassets holders to hold those assets and one incentive is obviously yield.
Wouldn't be great if those bitasset holders could earn 10% interest on their deposit?
My proposal to the bitshares community is to use part of the bitshares pool to create interest for the bitasset holders but not in the form of a bitasset (in order to avoid the risk of shorting for the creation of those bitassets) but rather in the form of eg. Open.cny, Open.Usd, Open.btc, open.eur.
Even with the current low price of bts (personal opinion) of c$0.0045 all we need is the committee to vote to sell 9 mil bts in external exchanges then convert the btc to the necessary Open.xxx asset to cover this 10% annual yield for the current supply of bitassets.
By sacrificing today 9 mil bts (that is c$40k) from the reserve pool we guarantee to the bitasset holders to earn 10% interest in the form of Open.xxx asset for their respective bit.xxx asset.
I know there are a lot of smart guys in bitshares community that can work out much better the simple math. For example is the bit.assets supply is increased, the interest earned will be reduced so we do not pass the $40k and vice versa. We could do 20% interest and sell $80k worth of bts from the reserve pool.
Obviously there is not even the need to go out in the market and sell those 9 mil bts at once. Since interest will be accumulated daily in the form of Open.xxx asset those bts can be sold gradually within a year, or work out the numbers to protect the pool reserve and not sell more than 9 mil bts if bts falls tomorrow in $ terms etc..
I really can't think anything negative about this. Everyone should be happy with this..
Bitasset holders instead of nothing get an interest in the form of Open.xxx asset
Open ledger gets liquidity
More people will hold bitassets.
What are your thoughts? Let's start a discussion, work out the numbers, let's make a proposal and let's do it.