Business Whitepaper 2.0

Disclaimer: My bias is, I love Chia and ProofOfSpace. I’m commenting because I think a refinement would be useful.

Chia Business Whitepaper 2.0

Quoting from page 4:

Artificial barriers between cash, stocks, municipal debt, corporate debt, futures, and digital money should fall. Such instruments should all be connected to one global market - managed for you by your smartphone - that trades all day, every day. This internet of markets will tie together traditional exchanges for commodities and equities to newer digital money exchanges and semi-centralized and fully decentralized markets and ultimately settle on-chain.

My comments:
Certain Derivatives, such as the Uncovered Write-Side of an Options or Futures Contract, cannot function without some form of collateral or maintenance of margin. Example: You Write (make+take) a futures contract to deliver 100 shares of XYZ on a certain date. If on that date your Wallet does not contain the funds to purchase those shares, the holder of your contract is still owed those shares from you. (This example excludes the special case that you already hold those shares.) The point is, certain forms of leverage are impossible in the purest trustless DEX/P2P Model, so these specifics must be clarified/refined.

Edit: I fixed some whitespace in the quoted paragraph.

You are correct that uncovered options can’t work but you are incorrect that the same functionality can not be equivalently provided by an AMM.

The concern I’m trying to highlight isn’t unique to Chia, and I want to emphasize that I view the Chia project to be outstanding.

The concern is in education and disclosure to users: when bridging to other markets (especially the legacy centralized markets), requirements and capabilities vary.