SmartCoin buyers are often willing to pay a premium to buy above the peg, however this is of little incentive to shorts because when it comes time to cover they have to compete with those same SmartCoin buyers and pay a similar premium to purchase SmartCoins to cover.
Is it possible to have a 'Buying Market' where SmartCoin buyers can only buy from people looking to short?
& a 'Selling Market' where if you want to sell your SmartCoins you have to do so to people who are closing shorts.
(SmartCoins bought in this market only extinguish existing shorts in the same account.)
This way covering shorts wouldn't have to compete against SmartCoin buyers because SmartCoin sellers would have to sell to covering shorts first.
Other: If there was no demand for short covering above 1-1 the BitUSD sell order could be transferred to the BitUSD buying market.
Is this possible/beneficial?
Edit: Doh, nevermind, even if it was possible, I imagine a third market would naturally form that brought together BitUSD buyers willing to pay above 1-1 & BitUSD sellers.
/Delete thread (I can't delete my own on this board apparently)