Shorting STEEM market asset idea
Anyone interested in a Short STEEM market asset to use to hedge against the price of STEEM?
This asset may be created when and as I make enough STEEM to create and issue the asset and reserves to buy back all current issued Short STEEM tokens. Have noticed interest in such an idea. Please understand that I want and think STEEM will go up in the long term and am not for STEEM going down. But it is and has been going down at times as prices of many things go up and down. So my thought is to offer a token that may be shorted against STEEM that may be used as a hedge against the price of STEEM for those holding STEEM and will be backed by STEEM. There will be a small amount initially. If there is demand for this idea then it will be further explored and funded. Maybe this could be a way to hold STEEM POWER with a way to hedge against the price of STEEM going down while having the benefit of having/holding STEEM POWER.
A bitshares asset would be created to represent the shorting of STEEM. Being sold as STEEM is accumulated by posts related to this idea and as Short-STEEM is sold to those interested. Market orders would be placed to buy back and sell this asset within some range of double the previous day's high and low prices to place high and low ranges for others to trade within. While offering some price level of buy back. With liquidity shown in the order books. Also offering for sale at various levels to increase the amount of float of this asset over time as supply and demand change.
Wonder what the trading fee of this asset should be. Will think things over more and potentially offer this limited edition asset soon. Will initially be a small amount so that guaranteed liquidity can be guaranteed as this will be a small market initially and will have to be built up over time.
Welcome to any input and interest in the reply / comment section. Maybe some may be interested in this asset as a hedge. Or for trading against opposite price movements for those interested in trading up and down with the price of STEEM. With such an asset there will be opportunity to profit when the price of STEEM goes up or down and have noticed some interest in such having been expressed.
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VIRGROW UIA on bitshares
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Interesting idea, but I wonder how it can be implemented so that it does in fact move opposite to Steem in its price.
If there was a way to borrow Steem, then you could sell it now and buy it back later if you thought it was going to go down. @steemfund loaned me 600 Steem as a test of their program to provide Steem loans. But there is the matter of insuring that whatever is loaned is paid back according to the terms. I guess that is the classic way to short an asset, and perhaps you will find a way to short without the trust issue. I know there are ETFs that purport to short certain indexes so maybe you can look into whatever they do and use some of that in your project.
In any case, it is good to have the ability to profit when Steem goes down, so I look forward to see what you implement. Best wishes!
Thank you for your reply. Could not borrow right now. Also in the future, margin function will be added with the bitshares DEX sometime it looks like. As well as dividends. Which is another feature I am waiting for.
Could offer to do loans and use other crypto for collateral maybe. I remember your loan with steemfund. May just be mostly a thought as we may not be quite ready for such ideas just yet.
bitSTEEM (MPA) could be a good idea
That's a thought to consider. :)
sooner or later someone will do it
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Sounds like a good idea.
Possibly, but how many may be truly interested?
Yes, how many...
I think this would be good for a few people to start and test it out with a very small investment. Not sure how it would work but i will be thinking about this idea.
I'm willing to create and initially manage the asset. I have thought it out a fair amount.
If you can make it happen Ithink it's an extraordinary idea! 💡 I'm in the same boat as you in regard to Steem and I've spoken with many others on Telegram who share the same sentiment. Do it!!!!
This Friday on Beyond Bitcoin Hangout I shall then.