bitUSD/CNY face chronic shortages partially because it is expensive to hold the .75 x of surplus collateral. Widgets that are expensive get supplied in lower quantity.
I have brought the idea in another branch, but would like to raise it one more time in this discussion. Although I'm not fond of the way BSIP42 was pushed, I agree that smart coins shall be enhanced to foster mass adoption. IMO there should be more incentive for people to borrow an MPA.
How about adding one more incentive to those who takes the risk? MPA generally is a good service/product, it has big demand. And therefore it can generate revenue stream (e.g. market fees). IMO it would be nice if those who take the risk and support (borrow) MPA shall have a cut from the revenue. To avoid passive yield harvesting, the borrower shall release borrowed MPA to the open market:
1. An MPA owner specifies market fee portion he would like to share with borrowers.
2. A user borrows the MPA providing the collateral.
3. To receive the cut of the MPA market fees, the user has to place market sell order on MPA:Collateral asset (e.g. bitUSD:BTS) market.
4. As the MPA is being bought and sold by other users, market fee goes to the MPA's owner vesting balance, particular part of it (as specified in 1st step) is proportionally sharedropped to all borrowers who has executed step 3.