I will not support reduce MSSR less than 1.02.
sure we need to keep some profit space for those who help eat the margin call order.
I saw some people want to reduce MSSR because they think feed price is too lower than it should be,
they should try to change feed price instead of change MSSR. there is big different between these two problem.
I agree that price feed problem and MSSR problem are different and need different ways to solve.
but after so long time practice, I think we should understand more deeply on the margin call rule sets.
first, can we just ragard the profit space for eating margin call orders as same as "MSSR-1"?
No, actually when the debt position is margin called/the collateral is forced to be sold, the profit space for eating margin call/the punishment to debt position owners is there.
even if MSSR = 1.because if you are provided the rights to buy some volume of BTS at the current market price, don't you think this right worth some money?
the same logic that trader need to pay for American options.
and what we can see clearly is that, either we set MSSR=1.1 or 1.02 does not determine whether the margin call orders be eaten or not, the more important factor is market sentiment.
the disadvantage of high MSSR is that, it benefit more on shorting BTS, and then encourage traders to short BTS.
so my ideas on MSSR setting is, MSSR should be greater or equal to 1, the lower, the better.
for bitCNY, 1.02 is a value that do not lead to "margin call orders not eaten" phenomena, it's time to consider to reduce MSSR more, to discourage shorters, to ensure better pegging.
for bitUSD, 1.02 is a value that margin call orders always stay there without being eaten, so no need to consider to reduce MSSR currently.