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General Discussion / Re: Looks like market pegged assets are being completely overhauled
« on: February 12, 2015, 07:03:43 pm »
Let me put it in another way. Let's say there was zero BitUSD supply, then some amount of BitUSD was shorted into existence and sold to some people, but then immediately afterward they all decided they wanted to sell their BitUSD (just under the price feed) and no one else wanted to buy BitUSD. Under the current system the BitUSD supply would unwind back down to zero in at most 30 days. Under the new proposed system, there is no such guarantee.
I agree that it is important that holders of a bitasset are guaranteed the ability to convert it back into BTS, at a price very near the feed, within 30 days. If the new system wouldnt allow this, it needs to be added.
I think even at our current very low DEX volume this won't be necessary. As long as a bitasset is used for trade of any kind it should be possible to exchange it to BTS due to market expectations becoming a self fulfilling promise. If you want to exchange your bitasset to BTS quickly than you can just overpay and your order will be matched quickly.