This is worth a read and maybe following. It's the NXT thread on to rollback or not to rollback. Not for the feint of heart. I also agree with CLains: this is no way to win. Really it could have just as easily been BTSX.
https://nxtforum.org/news-and-announcements/roll-back-bter-hack-of-50m-nxt/?all
Why turn NXT into an IOU on Bitshares X? Not disagreeing just not sure what it means.
I'd like to purchase NXT through Bitshares X and potentially hold them through Bitshares X.
I don't think it would be too hard to implement if we can find the source code to Vennd.io or if Bytemaster or someone can come up with an algorithm to show us how to do it.
I don't know how to do it in a way which isn't centralized but perhaps one way would be to connect to Counterparty and do it through Counterparty. I really would prefer if it could be done through Bitshares X though so that Bitshares X can actually make use of it's ability to issue assets.
If we own NXT on Bitshares then it's worth a certain amount in XTS which then gets accepted in exchange for NXT via some sort of API level connection to Counterparty or Vennd. Someone redeems the IOU and then the BTSX are represented on Counterparty as an IOU which gets sold for NXT and transferred to the owner on the Bitshares chain. On the Bitshares X chain you would lock it to your NXT address and the market asset NXT would allow us to trade on the Bitshares X exchange.
This is important because we need the ability to hedge on the success of Bitshares X by buying NXT when people panic sell it.