Please focus on fixing bugs first, give the system time to mature.
Limiting the downside to 90% will inhibit price discovery and free markets.
I believe Bitshares is supposed to operate as a free market, without any outside interference. This scheme will create a feeling of a Bitshares central bank that is monitoring and controlling the system.
What will help the system grow will be making arbitrage easier. If there is easy creation of arbitrage bots and automated market makers, then this should work.
Many financial brokers offer CFD, cash for difference instruments, which operate exactly like the bitassets, except the brokers act as a market maker in them, and uses underlying financial markets to hedge the instruments. If we make hedging easy, then automated market makers and arbitrage bots should fulfill that role.
Apologize for lack of understanding and knowledge, been casually following this forum, and do hold BTSX.
Against this suggestion.
I agree with this too, but i also understand the anxiety that if we miss the opportunity make people believe that 1 bitusd = 1 usd then it might be lost for ever. Is it worth discussing this proposal as a plan b to be implemented only if near parity is not reached by xx/xx/xxxx or if the bitusd falls below xx usd? Just having it in place and tested, ready to go at a moments notice could help them aline.
I don't believe that people need to believe 1 bitUSD = 1 USD for this to work. When there are market frictions present, possibly due to difference in liquidity, market participants, limits to arbitrage, the same asset can and often will trade for different prices. That doesn't hurt anything, its simply a manifestation of limits of arbitrage and market frictions.
In BitsharesX case, there are big limits of arbitrage. I work in quantitative investing, and am interested in building an automated market maker and arbitrage bot, however I am not sure how to go about it (lack of time to develop it, not obvious where to go for information on how to connect with any soft of bitsharesx api, etc.). If this information was more easy to come about perhaps I would develop one, or other like minded people.
There is also large market frictions, in that in order to trade on the platform I need to either buy BTSX for USD, or buy BTC for USD, and then BTSX for USD, then transfer those to my wallet and then I'm ready to go. During that transformation I have lost trading fees, withdrawal fees etc. It is therefore costly to start trading at BitsharesX. All this leads to lower liquidity and differences in pricing.
Improving the arbitrage/cross hedging infrastructure, and making it easy for (not super experienced) developers to interact with the platform should slowly reduce these problems.