Introducing Ripple Currency: DYM

[TTBit]

This is very interesting.

Supposing I fetch $100 face of junk silver (and a scale -- I barely trust my present scale to measure my coffee), I too could issue DYMs according to TTBit's specification.  If a few trust me as well as TTBit then we establish a market for TTBid DYM /  random_cat DYM.

Now I also happen to trust TTBit for 20 DYM.

 If I understand properly, assuming my DYMs match the standard that means I must drive 20 TTBit DYMs out of the market (and into my wallet) unless  TTBit also extends trust my direction.  For larger transactions, the other trusters make the market.  This changes with access to the quality and transaction measures in the ripple system.

Have I got that correct?

Good question, anxious to see how it works in ripple. I dont understand why you would have to drive 20 TTBit DYMs out of the market. But suppose you don't offer free shipping and random_cat DYM trade at a discount to TTBit DYM. Those who hold both issues would have one DYM total balance. This is similar to BTC-E USD trading to a premium over MtGox USD because BTC-E coins are cheaper, but yet only one USD balance would display in the account.

Now, someone with TTBit DYM wants to buy something, but that person only trusts random_cat DYM. When he sends DYM, will orders be filled in the TTBit / random_cat DYM market to make it work, or will the sender be credited with XRP?

[moocowpong1]

Let's call the person trusting both of you for DYM "Bob". DYM payments will "ripple through" Bob. If Bob trusts both of you to hold DYM and all the other settings are standard, then he's telling the system he values the two IOU's equally (but wants a small fee to switch between them). As people convert one to another, Bob might end up holding different IOU's than he started with. (But with the same or slightly greater total DYM balance.) If people value random_cat DYM less than TTBit DYM, then Bob will probably end up holding random_cat's.

When the client supports input and output qualities, Bob will be able to set his account to value them differently – maybe random_cat DYM are worth 90% of a TTBit DYM to him. If Bob holds 100 random_cat DYM, Eve has TTBit DYM, but Alice only accepts random_cat DYM, then Eve can send Bob 90 TTBit DYM and send his 100 random_cat DYM to Alice to pay her 100 DYM. Bob's happy, because even though he has less DYM, he has the ones he prefers.

I think this is how Ripple works, but I'm still not sure about how I feel about this behavior. At times I think it would be a lot simpler to do away with the "rippling" part of Ripple and just use the exchange for every issuer pair.

[random_cat]

Good question, anxious to see how it works in ripple. I dont understand why you would have to drive 20 TTBit DYMs out of the market. But suppose you don't offer free shipping and random_cat DYM trade at a discount to TTBit DYM. Those who hold both issues would have one DYM total balance. This is similar to BTC-E USD trading to a premium over MtGox USD because BTC-E coins are cheaper, but yet only one USD balance would display in the account.

Now, someone with TTBit DYM wants to buy something, but that person only trusts random_cat DYM. When he sends DYM, will orders be filled in the TTBit / random_cat DYM market to make it work, or will the sender be credited with XRP?

The driving TTBit DYMs into my wallet is my (speculative) ceteris paribus expectation from the asymmetry of the trust relation.  With a small network, I would not think it stable since very small shifts in trust (expressed in the brain, not the software) or value could cause market makers to create very wide spreads.

My understanding from what I have read so far is that the two DYMs are completely separate currencies that happen to have similar names.  That means there must be some exchanger(s) in the path(s) who charge(s) some spread.

Is the exchange function to be automatic?  From reading the gateway implementation description it would appear so.  I believe it was in https://bitcointalk.org/index.php?topic=149533.0 that I read about the need to reserve a bit of extra for a spend to cover fluctuations.

How does one gracefully shutdown a gateway with no time limit on the debt?

[TTBit]

Total DYM outstanding: 2549.3055! Silver prices have done nothing in the last few weeks, so trading has been a bit thin. Thanks to everyone who participated. Moving many of the silver to a secure location.

I plan on supporting this for as long as it takes. The response has been better than I expected.

Photo of an anxious DYM holder sent me:


(they are pretty cool, plug for his site - http://donttreadonmeme.com/)

[rpietila]

Wow, Silvervault seems to be holding about 1,500,000 DYM, making it one of the largest holders in the world!!

In our accounting: 150,000 AGD, where AGD is defined at exactly 24,71 grams of the said coins.

How can we cooperate in conquering the world? 

[TTBit]

Wow, Silvervault seems to be holding about 1,500,000 DYM, making it one of the largest holders in the world!!

In our accounting: 150,000 AGD, where AGD is defined at exactly 24,71 grams of the said coins.

How can we cooperate in conquering the world? 

Silvervault? I guarantee those are not DYM.TTBit.

[rpietila]

Wow, Silvervault seems to be holding about 1,500,000 DYM, making it one of the largest holders in the world!!

In our accounting: 150,000 AGD, where AGD is defined at exactly 24,71 grams of the said coins.

How can we cooperate in conquering the world? 

Silvervault? I guarantee those are not DYM.TTBit.

Ah, my bad. DYM was the IOU that is based on silver dime, right (not the dime itself)?

So as Silvervault holds 150,000 AGD, it could issue 1,500,000 DYM against it, or is the issue of DYM only possible by you?

[TTBit]

Wow, Silvervault seems to be holding about 1,500,000 DYM, making it one of the largest holders in the world!!

In our accounting: 150,000 AGD, where AGD is defined at exactly 24,71 grams of the said coins.

How can we cooperate in conquering the world? 

Silvervault? I guarantee those are not DYM.TTBit.

Ah, my bad. DYM was the IOU that is based on silver dime, right (not the dime itself)?

So as Silvervault holds 150,000 AGD, it could issue 1,500,000 DYM against it, or is the issue of DYM only possible by you?

My misunderstanding. DYM is 10 cents face of 90% junk silver. Anyone could issue DYM, but I'll only redeem the ones issued by myself for obvious reasons.

[rpietila]

Wow, Silvervault seems to be holding about 1,500,000 DYM, making it one of the largest holders in the world!!

In our accounting: 150,000 AGD, where AGD is defined at exactly 24,71 grams of the said coins.

How can we cooperate in conquering the world? 

Silvervault? I guarantee those are not DYM.TTBit.

Ah, my bad. DYM was the IOU that is based on silver dime, right (not the dime itself)?

So as Silvervault holds 150,000 AGD, it could issue 1,500,000 DYM against it, or is the issue of DYM only possible by you?

My misunderstanding. DYM is 10 cents face of 90% junk silver. Anyone could issue DYM, but I'll only redeem the ones issued by myself for obvious reasons.

Yeah, but if you would trust in us to hold that 1M+ DYM, then we would have a network of mutual trust. We redeem yours, you redeem ours, and ripple keeps the ledger. This way the banking worked in early-mid 1800s

[annette786]

I have granted trust of 1 DYM to your address and received confirmation.  In very specific steps, what do I do next to see the market to buy DYM with XPR?  thanks in advance.

[nelisky]

I have granted trust of 1 DYM to your address and received confirmation.  In very specific steps, what do I do next to see the market to buy DYM with XPR?  thanks in advance.

You go to the Advanced tab and cick on trade. Remove the currency pair from the drop down (you have to select the text box and manually delete the text there) and enter DYM/XRP. You should see TTBit's address or whatever alias you put in your contact in the DYM issuer next to the currency pair dropdown. If not, click on change issuer and select TTBit.

Click on Order Book below and in a few secs you should get the order book.

[annette786]

Ahh. Thank you.  I had bitstamp's address as I thought they were making the market. 

[drewdtom]

OK, so I have 5.5 DYM, anyone still selling DYM for XRP? I have some ripples left to burn and silver is cool with me!

I would also like to try and trade my DYM's for a product or service, is there anyone who has such trust in TTBit DYM that they have any interesting offers for me?

Basically my point is this: I'm not sure if this could be an acceptable traded currency unless TTBit was willing to make a run at a public awareness campaign attached to it... just thinking here... very happy with my DYM buy in... IN TTBit.DYM I trust!

[bitcool]

Any  DYM market yet?

[TTBit]

OK, so I have 5.5 DYM, anyone still selling DYM for XRP? I have some ripples left to burn and silver is cool with me!

I would also like to try and trade my DYM's for a product or service, is there anyone who has such trust in TTBit DYM that they have any interesting offers for me?

Basically my point is this: I'm not sure if this could be an acceptable traded currency unless TTBit was willing to make a run at a public awareness campaign attached to it... just thinking here... very happy with my DYM buy in... IN TTBit.DYM I trust!

Thanks for the kind words. I am working on DYM and ripple. I will hit the goods section in bitcointalk and offer up my services there. There are some vultures (in a good way) over there that would increase the liquidity of DYM. Once the depth/liquidity/trust is there, I expect other items to be traded for DYM, say silver bullion, etc. There have been a few bugs with ripple that have kept me from moving forward, but it appears to be mostly fixed.

Keep trusting TTbit.DYM!

[TTBit]

Any  DYM market yet?

Markets in:
DYM / XRP
DYM / Bitstamp USD

have a decent bid/ask, and do have a few trades every now and then.

I am guessing the BTC market has been too volatile for a tight market to develop.

[sron]

Any  DYM market yet?

Markets in:
DYM / XRP
DYM / Bitstamp USD

have a decent bid/ask, and do have a few trades every now and then.

I am guessing the BTC market has been too volatile for a tight market to develop.

TTBit,

I'm making a spreadsheet list of new Ripple currencies and contracts and I listed yours (check signature) - any plans for creating further new contracts?

[TTBit]

Any  DYM market yet?

Markets in:
DYM / XRP
DYM / Bitstamp USD

have a decent bid/ask, and do have a few trades every now and then.

I am guessing the BTC market has been too volatile for a tight market to develop.

TTBit,

I'm making a spreadsheet list of new Ripple currencies and contracts and I listed yours (check signature) - any plans for creating further new contracts?

Thanks for the listing. I don't have anything to announce at the moment, will let you know when something is worthy.

[bitaccumulation]

I see a whole bunch of offers for DYM/XRP but none for DYM/BITCOIN-bitstamp 

I'm confused a little but I thought I saw somewhere that one of the benefits of this system is that it will find a path between what you have and what is being offered.  So if I wanted to use BTC to pay, it would let me by converting it to XRP and completing the transaction.   Is this incorrect?

[dchapes]

I see a whole bunch of offers for DYM/XRP but none for DYM/BITCOIN-bitstamp 

I'm confused a little but I thought I saw somewhere that one of the benefits of this system is that it will find a path between what you have and what is being offered.  So if I wanted to use BTC to pay, it would let me by converting it to XRP and completing the transaction.   Is this incorrect?

If you're talking about path finding that only comes into play with the "send"/"pay" interface and not (currently) with the trade interface. To experiment, try sending 0.0001 DYM to TTBit (the issuer); just don't actually hit "SEND" and nothing will happen but you can see the possibilities that Ripple found; it will likely include XRP and probably BTC (if you hold any). Sadly the send page used to include the effective exchange rate but they removed that.

The developers mentioned adding synthetic trades to the order book so that some of this could be done via the trading interface but it hasn't happened yet (E.g. if so that you'd see a synthetic DYM/BTC offer based on any DYM/XRP and BTC/XRP offers and if you entered a matching offer it would actually do the other two trades for you).