Why have you stopped using BitShares?

in BitShares2 months ago

Historically BitShares was always top 5 for operations in a 24 hour period, see: Blocktivity

What happened?

The blockchain space has been moving towards DeFi for quite awhile and with recent regulations around the world, DeFi is no longer a choice, but a requirement. BitShares has the ability to become the clearing house for transacting in other crypto.

  • How should development time be spent?
  • How to onboard new users?
  • How to attract new developers to build apps on top of the BTS blockchain?
  • How to grow the community once again?

UI - Ease of use and understanding has always been an issue with BitShares. DeFi is complicated and overwhelming for new users. A simple and advanced user interface would greatly improve new user experiences. This can be seen with any modern day stock exchange broker, bank website, even coinbase.

Bitassets - These were a giant draw to utilize the Bitshares blockchain. They have been globally settled multiple times now and have frustrated many traders. The underlying algorithms have been tweaked to prevent gaming the system however they still remain in a globally settled state. Is it as simple as bringing back these stable"ish" coins to regain liquidity?

Documentation - Update all documentation to ELI5 standard. BTS is way beyond a standard send/receive blockchain. Simplified documentation for developers is a must, otherwise they will get overwhelmed, frustrated, and look elsewhere.

Simplified Gateway Setup - Many redundant gateways / liquidity pools will be required for users to exchange crypto. Simplify the process to setup a hosted wallet/gateway/liquidity pool.

What do you think will jump start the community once again?


Bitshares and DeFi is needed more then ever. I believe these situations will only escalate to become common practice. BTS is a step in the right direction to protect both businesses and users.



What do you think will jump start the community once again?

Another thing we really need to address is getting the Bitshares DEX listed everywhere there's a list of DEX - too often Bitshares is not included.

Further, having all the credit offers and liquidity pool data made available to websites tracking these sorts of things will drive users to the Bitshares DEX. By these platforms not showing the BTS DEX pools alongisde competitor pools we lose out on opportunities to grow the BTS DEX user base

Regarding the smartcoins, to revive most of them Bitshares 'simply' needs to increase in price to a point above undercollateralization. Until then some of the committee owned smartcoins cannot be borrowed and have a largely undercollateralized value.

There's nothing preventing anyone creating a new smartcoin, multiple privatized smartcoins have been created, such as Hertz, Hero and Honest.USD.

These privatized smartcoins can have competitive settings, innovative financial theories, and most importantly a fresh slate for users to begin borrowing, however there are huge hurdles to overcome for these new privatized smartcoins to gain traction namely:

  • Getting price feed producers for your smartcoin is very difficult; it's a multi week task to get several price feed publishers to add your asset, nevermind getting your asset added to existing price feeding scripts. You're more likely to have your peers feed the smartcoin than for the witnesses or committee to do so.
  • Once price fed and borrowable, you need to convince BTS DEX users to borrow it, to trust the price feeds and to trade it. The task becomes one of marketing.
  • Borrowing is largely a manual task, there doesn't seem to be many bots out there automatically borrowing smartcoins and maintaining their collateral.
  • If the backing collateral is highly volatile, people might not borrow due to risk of liquidation.

I'd say perhaps to avoid a BTS collateral death spiral, the collateral of a smartcoin should be an exchange backed asset like XBTS.BTC, so that CEX cannot easily manipulate the price of the collateral asset to cause indefinite global settlement.

Some of the new smartcoin settings like individual settlement funds also can help avoid breaking the smartcoin if the collateral value craters.

There's huge potential for smartcoin tech, it's just that most/all of them used BTS as collateral, used CEX provided prices for price feeds, then went into a death spiral as the BTS price dropped.

Locking up more BTS as collateral, making less BTS liquid, is great, but we have other means of doing so now on the dex, credit deals, vesting balances and liquidity pools for example, plus the DEX harvests BTS fees from every blockchain operation, so not using BTS as the collateral isn't a detriment to BTS.

Getting some of the server hosted BTS solutions added to virtual machine marketplaces might make it easier for people to get them running https://blogs.vmware.com/tap/2022/03/01/publish-on-vmware-marketplace/

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