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General Discussion / Re: Global Settlement for BitUSD
« on: November 27, 2018, 06:53:19 am »3. We're well aware that risks will accumulate if margin calls not being eaten. Although admittedly BSIP42 helped the risk accumulation to an extent, I still believe it's not fully due to BSIP42. Before BSIP42, E.G. on bitcrab's image, bitUSD has a more than 15% premium, to eat the margins which are hanging at -10% you still have to pay quite a bit more than market price.
BTS price limit the smartcoin supply, if the demand overcome the supply, either premium or system risk will arise.
will everything be OK if we adopt the dynamic MCR solution to replace BSIP42? seems not.
in MCR solution, while demand for smartcoin arise, MCR need to be adjusted downwards, say, if MCR reach 1.2, it will be easy to touch black swan if there is rapid fall of BTS price.