I believe a working price floor for future merchants is really needed. In a situation like in bitCNY right now, there are not enough buyers for bitCNY at feed price, and bitCNY holders can still redeem at feed price with a 24 hour delay.
Without a price floor, we're going back to the 0.9.x bitAsset where everyone will be afraid to trade in that market. And it will not gain any traction because the peg is not working at all - if you cannot redeem your bitUSD for at least 1 USD, you're not going to use that token as a merchant, are you?
The shorter bears the risk of being margin called or being settled at a fair price. They're charging a premium over price feed for this risk. Some people claim this is a new feature, but it was in the cli wallet since the very beginning, and first discussed in https://bitshares.org/blog/2015/06/08/lessons-learned-from-bitshares-0.x/#bitassets-need-a-floor-not-a-perfect-peg. It's the shorter's responsibility to do due dilligence before investing any money. Claiming they did not know is not a valid argument IMHO.
actually I remember there is something called "forced settlement" when bts2.0 announced, but when the light wallet, launched, it is not inside, so I think "maybe it is now removed from the plan", so haven't put much mind, I think I am a man that follow Bitshares closely, then how about the common users?
not enough buyers buy BitCNY because there's little usage, do not because there is no price floor, now normally people can redeem BitCNY from transwiser in 2 hours.
from any perspective I don't think the force settlement is a good solution to provide a price floor to merchants, on the other side, it may provide a good tool for speculators.
does merchant need BTS? if not why they force settlement to get BTS? to sell in another exchange to get usd?
Bitusd exist for long, and is always expensive than USD, why there is a "price floor" problem? why there is not a redeem business for bitusd grow up?
in the force settlement, there is always the user with lowest collateral ratio that exposed to the risk. if the feed price does not reflect the market price now and then, the speculators will always have chance to make profit from the shorter, but why should the shorter lose?
I wonder whether the feature is asset-specific, if possible please disable BitCNY forcesettlement feature, but leave the BitUSD forcesettlement there.