suppose now:
feed price is the real market price.
feed price black swan protection implemented, feed price is ensured to be above GS price to protect GS from happening.
then while the BTS price is from high to low, bitCNY premium is from low to high, the whole market condition can be divided into 4 phases:
1.bitCNY discount > force settlement offset (current value 2%)
because of the force settlement, even bitCNY enter into phase it will soon get out.
2.bitCNY discount < force settlement offset & bitCNY premium < (MSSR-1)
in this phase, the margin call orders will be eaten immediately after it is generated, risk will not be accumulated and bitCNY peg well, this is the ideal phase.
3.bitCNY premium > (MSSR-1)
in this phase the margin call orders will stay there without being eaten, GS price will not drop while the feed price drop, risk accumulate.
4.market price drop below the GS price
as black swan protection measure implemented, GS will not happen, feed price will stop to drop following the market price, if BTS price continue to drop, bitCNY will devalue.
in phase 2 the economy is healthy.
phase 4 means the ecosystem is in financial crisis,currency devalue。
phase 3 is a status between 2 and 3.
in Bitshares phase4 will always happen once every half to more than 1 year, and phase3 is a phase that we always meet.
black swan protection make it a "soft landing" while entering phase 4, this is much better than global settlement and benefit reviving.
if we reduce MSSR to say 1.02, it will make even in phase 3 the smatcoin is still in a not too high premium, and make phase 3 more acceptable.
if we increase MSSR to say 1.15 or higher, it will make in phase 3 smartcoin is in very high premium, and make phase 3 less acceptable.
if we implement dynamic MCR in the future, we will change a big part of phase 3 to phase 2.
smartcoin system is a stable coin issuing system based on debt, we need to optimize the rules to balance the asset and debt, not only emphasizing "to release risk".
frankly speaking, in current condition we need to reduce MCR, before we can do this, we need not to try to make all the margin call orders be eaten.