The market will run as your thought? en,that's very interesting.
How about we just increase MSSR to to least 5%? Margin calls will be bought before GS happens. If you continue to 100% protect the debt holders GS events will happen all the time.
If you settle the under collateralized positions to smart coin owners that's just stealing from them and goes against DEX rules.
GS happens because of 1 thing:
1. debt positions don't adjust debt
To correct that DEX should:
1. Margin call their position with enough incentive for the position to be liquidated (MSSR), the margin call should be such that debt holder would want to adjust their debt or close it.
Shifting risk to the DEX, smart coin holders or anyone else is just not a good business practice.
But you are most likely a debt holder so you probably want others to pay for the risk you took and lost. When BTS goes up I don't see any debt holders creating GS funds, they just want to use other people's money to cover their risk. And that's the gist of it. The sad part is that by seeing only your way, you fail to notice that BTS continues to slide because of people's mistrust and bad practices.