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General Discussion / Re: Investigating the reasons for BitUSD GS
« on: December 08, 2018, 11:26:05 pm »
Global settlement happens when collateral is not maintained by bitasset shorters.
Bitshares has a built mechanism to punish them to maintain their collateral and also incentivise would be margin call buyers.
The bitasset shorter is punished by selling his collateral at a 10% discount.
The margin call purchaser is incentivised to buy BTS at a 10% discount from feed price.
This system is called MSSR and is currently set at 10%
All we need to do is increase it to 20% and bit asset shorters are more likely to maintain their collateral.
Bitshares has a built mechanism to punish them to maintain their collateral and also incentivise would be margin call buyers.
The bitasset shorter is punished by selling his collateral at a 10% discount.
The margin call purchaser is incentivised to buy BTS at a 10% discount from feed price.
This system is called MSSR and is currently set at 10%
All we need to do is increase it to 20% and bit asset shorters are more likely to maintain their collateral.