In the coming release (0.9.0, now testing in dvs), expired shorts will sell at feed price only, is it really good?
In current release(0., expired shorts will sell above 90% of feed price, same as margin calls. I think this feature is reasonable.
Any discussion before? Please give me a link, thanks.
We discussed it both ways and there are pros and cons. If no one is selling their BitUSD then shorts will be hurt and thus they may not short again in the future. Absent a reliable market maker the feed protection protects all shorts.
Just some thoughts.
The market will become less efficient with the new matching rule. If no one wants to buy BTS at feed price, the expired orders will probably hang there for a long time and won't take priority while matching. People could short/bid at a lower price and happily get matched with low-priced ask orders.
With 0.8, if some huge shorts expired, many traders will see it as a chance to buy cheap BTS and thus the market works. With 0.9, perhaps small traders are not willing to fill those huge orders. If a whale wants to buy the expired shorts (BTS) at a lower price, she will probably dump at btc38 to lower the feed price first. The result is similar.
We protect shorts which obey the rules (cover before expire).
Anyway, the market speaks, let's see what will happen.