I think I'm missing the crux of the problem solved by BitAssets 3.0. I feel like bitAssets have tracked pretty well considering some nasty bugs that should just now be fixed in the upcoming hard fork, the drop in BTS, shorters not realizing they can't cover with their collateral etc.
Will this peg "hold", yes it will. Will it always be worth at least $1 yes. Will the cost to buy it sometimes be far more than $1, YES.
So we can now say that BitUSD has a FLOOR of $1 and can go up from there. As a merchant / consumer that is all you care about (the floor). The presence of a floor means that people can trade USD for BitUSD and purchase things with BitUSD without having to think about whether it is worth $1. The only people that actually have to think about whether to buy at $1.05 or not are traders... they take the risk that short demand will increase and push the price back down toward $1.00. On the other hand, in a bear market short demand may decrease and push BitUSD up to $1.10.
I generally disagree that the price will remain above $1 or generally trade around $1.05 when it's only convertible at 99%. I think that bitAsset holders will need to use the force settle at 99% a lot to get their value and it won't be just a theoretical backstop. Therefore I think the price feed will have more power in this system because the price feed specifically determines the price you pay when you convert.
I think the rule no shorting below the feed was a good rule because it protected the market without specifically forcing people to do something, just preventing people from doing something they shouldn't be doing anyway. I don't know why the desire to get rid of this rule, not sure if it's just for easier implementation.
I also feel like when you add extra parameters it makes the system sound more complicated to me and I feel like people want to know why these are the right numbers:
Settle at
99% of the feed
with
24hrs notice
with a maximum of
5% of supply convertible per day.
Shorts can vote to force settle the market with
30day notice
giving USD holders a
10% premium.