I know this rule was put in place to make the peg more accurate, but I still feel that it should be my right to take the risk of putting in more competitive shorts, even if it causes cheap BitUSD to be created.
I think there needs to be an outlet for people in your position and that outlet should be options contracts.
Are you working on implementing an option market? This would be great. Real option price models depend on a lot of factors, I am curious how you would implement things like time, volatility, settlement, assignment, and sub Penny strikes. It would be interesting to see how the premiums hold up.