Remember to calculate your running yield based on weekly coupon/purchase price. A coupon that yields 0.07 BTC weekly, but for which you pay 1.05 does not yield 7 %, but rather 0.07/1.05 = 6.67 %. You also need to factor in that if you need to sell back to the issuer at 1 BTC, you will also have a capital loss of 0.05 BTC over the term you hold the investment.
I've discovered that irrational markets just look at the largest nominal yield and go for that without really looking at which investment really offers the best deal.
That is true, and that's where the three and a half month breakeven between FOO.PPPT and TYGRR.BOND-P came from 1.05@7% or 1.02@6.8% for FOO.PPPT and TYGRR.BOND-P respectively. Both of these bonds offer buy-in at these rates weekly, both performing around 6.667% yield as you said.
If we turn the same math onto your bond however, using the par value for the transfer fee calculations (to simplify it down some, this favors BIB.PIRATE) for your market maker system. 100 shares can be purchased for 1.022 each, and 200 for 1.012 each; with expected yields around 6.605% and 6.670% respectively.
The easiest way for me to argue it to myself is that after six months, getting the full 7% pulls ahead of any other offering at current rates.
I bought a few dozen shares from Bitfoo at 1.0 BTC, so I get the full 7% there...
Since you charge fixed fees per transaction, it only makes sense to invest in BIB.PIRATE with big sums at once (or withdraw big sums at once), otherwise the fees would be higher than other "investments".
I would offer trade-ins ("1 share of FOO.PPPPPPPPPPT = 100 shares of BABYPIRATE", "1 share of BIB.PIRATE = 80 shares of BABYPIRATE" or whatever other conversion rate you like) to get around expansion + buying bonds issues.
As soon as the dividend API is finalized, I'm probably launching an asset on my own on GLBSE again... something like the asset you suggest could very well be part of it too.
I wish I could have gotten in sooner with all of this in general, congratulations on the good grab though.
I do want to offer trade-ins, but particularly at first there would probably be a high minimum.
I'm also not sure if I like the name BABYPIRATE or not to be honest, I'll have to figure that out. Mind if I use it though? Something like TINYPIRATE might have fewer connotations around it.
What part of the API are you waiting for? If you're just waiting to see if you've been paid the weekly dividend before reinvesting in more normal PPT bonds or put the little pieces into something like this? Or automating dividend payouts to security holders?
