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General Discussion / Re: [POLL] What rate should the committee sell the collected bitassets over feed?
« on: January 31, 2016, 03:22:35 am »I've been an advocate for this for some time, but for a different reason. We need a backstop (seller of last resort) for shorts while the market is not liquid.
Since squeeze protection kicks in after 10%, that means there is a "normally" operating market between 0-10%. Let the market do its thing within that range.
If you can't tighten the normal range of Smartcoins to <10% then you don't have a product imo.
Nubits cost you less than a few percent to buy and sell, UpholdUSD too I assume, so if you have a short holding period the risk of either of those failing isn't enough to justify paying a much larger spread for BitUSD.
We either need to incentivize the shorts to come closer during these market conditions/adjust the collateral requirements/other.
This isn't really about liquidity its more about making sure trade fees go to the reserve pool where they belong. Other more radical plans for liquidity are being discussed and are needed for a tighter peg.