wenhuadream commented 4 years ago

BAIP: 0002
Title: Reform of loopholes in feed price mechanism
Authors: cn-vote  bitshareschina@163.com
Status: Accepted
Type: Consensus 
Created: 2019-10-22

Abstract

This BAIP defines reforms to the current feed price mechanism vulnerability. The specific program is: Thefeed price is the highest between the current price and the two-day moving average price .

Motivation

After the failure of BSIP42, the current feed price mechanism has major loopholes and serious negatives, many cex exchanges use our vulnerability to maliciously short,which seriously damaged the ecological balance, which caused us to suffer many unnecessary losses and hindered the development of the entire ecology. When the vulnerability has been expanded to be intolerable, in an emergency, the passage and execution of BSIP76 has temporarily blocked the expansion of the vulnerability. However, the current feed price mechanism is still in urgent need of reform.

Rational

"The feed price is the highest between the current price and the two-day moving average price ". This BAIP does not conflict with the previous consensus on the feed price of all the communities. The feed provider continue to collect the feed price according to the original community consensus, and the community consensus on the protection of the black swan(BSIP58) and the minimum feed price is continued(BSIP76). This BAIP only requires the introduction of the abstract described in the feed price script, which is "The feed price is the highest between the current price and the two-day moving average price ".

Specifications

Implementing measures

If (current price >  two-day moving average price) {
  feed price = current price;
}
Else{
  feed price = two-day moving average price;
}

Noun explanation

Current price : The real-time feed price of the current feed price mechanism before the reform.
Two-day moving average price : two-day moving average price =(current price (1) + current price (2) + current price ( 3) ...+current price (n) )/n.
- n is the sampling frequency, which is 48 times, that is, n = 48*m; m is positive: m = 1, 2, 3....
- current price (k) is the current price at the time of sampling. The current price (1) is the current price at this moment. The current price (n) is the current price at the time of 48 hours ago.
- Sampling interval (in hours): sampling interval = 48 / n = 48 / (48 * m). That is: m = 1, two- day moving average price every hour to sample once,;m = 2, two-day moving average price half an hour to sample once, And so on.
  supplementary explanation
  
  To decide whether to reform of loopholes in feed price mechanism, 2 poll worker proposals will be created for voting:
Poll-BAIP**- Reform of loopholes in feed price mechanism.
Poll-BAIP**-Not reform of loopholes in feed price mechanism.

If the voting confirm the change, committee will announce the change at least 3 days before the change is implemented by feed provider.

Summary for Shareholders

This program is simple and effective, and can prevent malicious short-selling or increase malicious short-selling costs to a certain extent.

Discussion

https://github.com/bitshares/bsips/issues/244

Copyright

This document is placed in the public domain.

malcolmjmr commented 4 years ago

After the failure of BSIP42, the current feed price mechanism has major loopholes and serious negatives, many cex exchanges use our vulnerability to maliciously short,which seriously damaged the ecological balance, which caused us to suffer many unnecessary losses and hindered the development of the entire ecology.

What examples do you have of malicious shorts?

grctest commented 4 years ago

This BAIP failed to prevent the price feed threshold workaround from BSIP76 from needing to be activated for a second time.

bitshares / baips

baip-0002.md #15