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General Discussion / Re: A New Proposal of Interest for BitUSD Holders
« on: September 15, 2014, 08:23:25 am »I just had a subsequent idea that levers off your principle of a floating R, but better satisfies my concerns that R always acts to sustain rather than distort the peg. What if you had a simpler set of rules, that if BitUSD is below the peg price, R could be steadily increased once every hour say, and if above, R could be steadily reduced every hour. The rate of increase or reduction at the end of each hour could further depend on how far the price is from the peg price, the further it is requiring more aggressive change. The increments would step down again as the gap tightened.This would still require price feed.
It should also not be required to have any limits on R, as if they are hit, it will only mean the peg will break again. We should be prepared for R to get very high if that is what is required to balance the supply and demand, given the view is that the peg is more important.
The question whether R limits should be lifted is open to discussion. They are there for preventing short-term market manipulation.