So then a settlement will cost 2% and those 2% are given to the borrower(s) ..
Essentially, that "brakes the peg" such that the floor then would be $0.98 or 0.98CNY.
it makes sense to me ... it sounds like a compromise ..
fortunatelly .. we can have different discounts for different assets .. if people that trade CNY agree with that settlement cost .. why not ...
It does NOT automatically mean that we need to do this for the BTC and/or USD as well ..
Let's have a discussion about this please ..
//edit:
@alt: Am I assuming correctly that this would correspond to a "discount = 1.02" in the current feed script implementation?