Centralized lending platforms letting you down? The Decentralized credit offer tech on the Bitshares blockchain has your back!
What's been happening recently?
I've seen in the news recently multiple centralized lending platforms going bust for various reasons, it's an unfortunate reality that their users face either a long drawn out repayments process or a complete loss of value.
It appears that some of these lending platforms offered unrealistic rates drawing in huge amounts of client funds, but these funds ended up in highly leveraged positions or squandered by bad actors.
You shouldn't have to put up with such risks with earning interest on your crypto; thankfully you can use the credit offer mechanism on the Bitshares DEX as a secure alternative to these centralized lending platforms!
What's Bitshares?
Bitshares is a DPOS blockchain based decentralized exchange, check out the project page for more info.
How can Bitshares' credit offer tech help me?
Rather than having to rely on centralized exchanges and lending platforms to lend/borrow crypto funds, you can easily use the Bitshares credit offer mechanism to significantly reduce counterparty risks.
All participants can see the terms of credit offers, including the backing collateral required for accepting terms of lenders credit offers.
So say a borrower's plans for paying back their credit offer fall through, the lender is immediately made the owner of the accepted credit offer's offered backing collateral.
Compare this to some of the centralized lending platforms, lenders were making a large % APR without knowledge of the underlying risky bets and the divvying up of collateral to creditors is slow or non-existent.
So with more transparency and an immediate decentralized resolution to non-resolved credit offers, Bitshares sounds amazing.
Lending crypto
You set all the rules in your proposed credit offer, even if they're unlikely to be accepted.
Info you'll need to configure:
- A quantity of assets which creditors can borrow (1 type per credit offer)
- Accepted collateral asset
- Repayment rate & repayment duration
- Minimum borrowable amount
- An expiration date for the credit offer
- Optional: Limit participants
Creating a credit offer is cheap, currently costing 0.4826 BTS (less than half an USD cent).
Borrowing crypto
If you have collateral you wish to borrow crypto assets against in a decentralized manner, the Bitshares DEX's credit offer mechanism is for you!
Check out the credit offer page:
https://wallet.bitshares.org/#/credit-offer
This page lists all current credit offers available to accept, if a credit offer you were expecting is missing you'll need to reach out to others in the Bitshares community to make this credit offer.
So if one of the credit offers interests you, once you click on the loan button you'll see a prompt like the following:
Within the prompt you specify how much you want to borrow, and it'll inform you of the required collateral which will be forfeit if you fail to repay the loan with the additional fee by the end of the repayment period.
So perhaps you should be cautious of using centralized lending platforms, and instead should use the Bitshares DEX for its credit offer mechanism!
https://bitshares.github.io/
https://wallet.bitshares.org/#/credit-offer
https://github.com/bitshares/awesome-bitshares
https://peakd.com/bitshares/@nftea.gallery/experimenting-with-micro-nano-sized-fee-free-loans-on-the-bitshares-dex
I liked bitshares, until I bought into bitBTC.
There is no warning - nothing - I bought an untradeable asset, which looked quite official.
The only functional gateway was rudex and they moved to graphene chain.
Bitshares has some cool features and was generally a nice idea, but without gateways it's totally useless. Still holding some BTS, but price dropped so hard, it's just sad at this point
I voted some of these posts, but after checking bitshares wallet, I will stop doing that.
Look at the markets and their depth.
It's really just a trap for people to walk into.
How long ago was that? bitBTC has been in a state of settlement for years.
It's tradeable for sure, it's just not a real BTC but rather an undercollateralized debt position, ie it's less than the value of BTC because the backing collateral lowered in value below 100% a few years back.
If you hold onto it and the BTS price recovers then it'll become whole again, otherwise you can settle it for the available backing collateral, or sell it on the open market at a reduced rate.
I don't think it's untradeable, just not whole.
Whilst there may not be in your face warnings re smartcoins which are in settlement, there's certainly clear indicators that it's not borrowable and the rate of settlement (underlying value).
Let's not forget, the comparison being made in this article is comparing a safe credit offer mechanism to hundreds of millions of $ to billions of $ being lost due to corporate crime.
They were not not the only functional gateway, there's the bittwenty gateway, iobanker gateway, xbtsx gateway, gdex gateway, and a couple others for individual coins.
Rudex made themselves irrelevant by making their own clone coin with no community and a fatally flawed initial distribution (DOA IMO).
I agree it's got cool features and is a nice idea, however I disagree that it doesn't have gateways, it's entirely possible to bring external tokens onto bts via gateways and HTLC.
Thanks for your initial support, hopefully as BTS price improves you'll reconsider supporting BTS community efforts.
Fundamentally disagree that it's a trap. The liquidity on CEX is strong, going as high as tens of millions of $ the other day, plus DEX liquidity exists despite CMC not including it. Check out the growing size of user created liquidity pools for example.
Further the low price it's at now seems to be a relative floor, so buying/holding BTS at these low prices doesn't seem to be a trap but an opportunity to me.
years ago.
It's a worthless asset and I guess there is a bunch of people trying to sell it to unaware newbies like myself. It looks 100% official, though...
If anyone asked me about bitshares, I'd tell them to not touch it, since these 'bit' assets are (though I guess not intentionally) pretty much a scam.
About rudex:
When I was using Bitshares, rudex was the only functional gateway.
I converted some 10k $ through them. Worked fine.
I was also airdropped assets on their new chain.
For me bitshares was a trap and I lost money, while rudex did all they promised and I even made some gains.
So please excuse me, when from my perspective Bitshares was a total loss on it's own.
Would never recommend it.
With all the pools and swap services, it became obsolethe anyways, imo.
I wouldn't agree they're a scam. You could have made the same mistake on multiple blockchains and CEX on an illiquid market trading pair.
Further there are multiple 'smartcoins' issued by different groups, ie bitassets are committee ran and bitBTC ran into issues like 5 years ago , where as HONEST.USD for example is run by a community org.
You could avoid these smartcoins entirely if you're only interested in the topic of this article - credit offer mechanisms, with minimal risk.
I have updated the blog post lender image to not reference bitUSD, but rather XBTSX.USD for BTS, apologies for bringing up bitAssets whilst some are in a state of settlement.
It should be easy to edit the wallet software to include a warning. Nobody in their right mind would buy them. I lost like 200$ worth of value, only; Money well spent in hindsight. (Don't buy stuff you don't understand)
And no, this wouldn't have happened to me on any other smartcontract thingy, because -again- they look very much official. Run by a comitte and everything..
I made a mistake, and I am not blaming anyone but myself.
At the same time, I have made significant progress and would consider myself a seasoned (and quite successful) crypto-trader today. I am well ahead of most people trying these things.
I still don't fully understand what is going on with these 'bit' assets and for most people this is nothing but a trap.
If you are interested in restoring bitshares' value, I recommend, before all other things, to prevent people from buying these broken assets.
I appreciate your replies, btw.
I've raised a new github issue to hopefully avoid the scenario where users bid in excess of a globally settled asset's claimable backing collateral, similar to the current limit order warning if exceeding the lowest ask: https://github.com/bitshares/bitshares-ui/issues/3604
It should have a small amount of backing collateral you can claim it for, unless you hold it until BTS rises enough in price for it to be worth 100% of the value of BTC at which point settling it for BTS then trading to XBTSX.BTC then withdraw is the way to go
Swap services are an interesting competitor to the BTS DEX, however as this article references, centralized lending pools are going bust at a high frequency lately, at least you can transparently judge the full risk of a credit offer on the Bitshares DEX.
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