I support reduce MSSR to 2% instead of any complex feed price adjustment(manipulation)
I think the BSIP42 this time is just an emergency plan, and there will be a better solution later.
I don't understand why we need this temporary complex way when we just need to simple reduce the MSSR.
As my observation, it's already a very difficult task for those witness to give a reasonable real market price.
You should never expect more from them.
We must limited the power from them or they will screw up again.
we learned a lot in the long painful process.
if what we want is just increase the price of the stayed margin call orders, the 2 ways really have similar impact, after that margin call orders being eaten, they have different impacts:
1. raise BTS feed price can increase bitCNY supply, tuning MSSR does not.
2. dynamically tuning feed price include the negative feedback logic that can help peg, setting a fixed MSSR value does not.
we design complex solution because the world is complex.
I know that you do not like BSIP42, however this time I am proposing an updated version, it limit the feed price not higher to market price*MSSR to avoid that margin call orders stay their without being eaten, it limit the feed price not lower than market price to avoid unreasonable margin calling. I believe this remove the impacts that you dislike.
however this is still a temporary solution, later some new solution will be discussed sufficiently to replace this one, it should include:
1. dynamic MCR
2. new measure to handle black swan that do not stop borrowing.
3. MSSR change
I understand that we cannot make bitCNY a stable coin that always own sufficient collateral, good pegging and sufficient supply, but we have chance to reach a point that is close to that point, and that really need careful design.
hope you can understand and help in the process.