In current situation, I concern more about forced settlements than black swan or global settlements. IMHO forced settlements are needed. For better user experience, perhaps we should match force-settle "orders" with limit orders when prices of limit orders are better than settlement price for the settler.

if then, why not disable force settlement and just let the users place buy orders in market if they want to convert bitCNY to BTS? what's the difference?

Disable force settlement and global settlement, Are you mad?

You initially said the 5% force settlement was a temporary measure,  that was a year ago.  Bitshares is a protocol you can't keep changing the rules for your own interests even as a big whale.

As someone else said, make your own CNY smartcoin don't try and change the committee assets.

How can someone have faith in a stablecoin when the rules change every year.

all the changes are based on consensus.

anyone can suggest to change the committee assets, if there are strong consensus on changing, change will happen. smartcoin need to evolve, don't say "keep *** unchanged, create your own assets", if you disagree one suggestion, just explain your opinion.

change do not lead to losing faith, keep everything unchanged even it is very necessary will lead to losing faith.

bitCNY kept losing faith until BSIP42 come out.

for bitCNY, force settlement make little sense, 5% offset is to protect debt position owners from being hurt, I do not suggest to change the offset back because I don't see any necessity to do that, after the BSIP42 implementation, if we do not disable force settlement for bitCNY, maybe some time we need to increase the offset to 10% or even higher to ensure the system work well.

It is not possible to disable black swans.

This latest idea together with all the experiments and tweaking have taken bitCNY so far away from the original idea of BitShares' smartcoins that it would make sense to introduce a new kind of smartcoin tailored to your needs.

nothing impossible.

what we should do is to make bitCNY/bitUSD the best stable coins in the token economy world, not to fix on the original idea of Bitshares smartcoins.

smartcoin need evolve.

it is reluctant to tell the users:"hi Buddy, bitCNY/bitUSD has some problem, could you please switch to XXXCNY/XXXUSD?"

BSIP42 now worked fairly well in bitCNY. in several days the bitCNY premium decreased from above 5% to about 0.35%(this moment).

however, we are now facing 2 problems:

1. based on BSIP42, feed price may be much higher than Pdex(BTS price in DEX in bitCNY) in bear market, it may also be much lower than Pdex in bull market, now we have a 5% force settlement offset for bitCNY, but in bull market, it's possible that feed price be more than 5% lower than Pdex, at that time there will be chance for bitCNY holders to make profit by exploiting the debt position owners.


2. black swan possibility increased? now feed price is 12.3% higher than the latest price in DEX, many margined called orders just stayed there without being eaten, at this moment the highest call price in these orders is 0.9088, and we have a global settlement price of 0.5193.

I feel now force settlement and black swan now make little sense for bitCNY, especially after the BSIP implementation.

bitCNY has a force settlement offset of 5% for long time, it is seldom used, no obvious impact on the pegging of bitCNY. thanks to the good liquidity of bitCNY, bitCNY pegging depend little on the force settlement feature.

after BSIP42 implementation, it is the negative feedback mechanism, not the sufficient collateral promise that play the key role for bitCNY pegging, now when bitCNY is close to black swan, bitCNY will also has very high premium, the negative feedback mechanism will work to help to recover the BTS price. no need to trigger global setting.

in my view, for bitCNY, force settlement and black swan now make little sense but bring some trouble, I wonder whether it is possible to disable these 2 features.

any thoughts? we need sufficient discussion on this topic, no need to rush to a conclusion.

updated witnesses voting. we would like to support the witnesses that work well in implementing BSIP42.

as now bitCNY is still in obvious premium(>1%), we select to vote the witnesses that always publish price which is higher than median.

we'll keep on checking the price feeding status and update the witness voting.

What will be the next proposal to cancel black swan events ?

you are right, I am considering to cancel black swan events.

updated version:

Pdex：BTS price in DEX in bitCNY
Pf: current feed price
premium: current premium
Premium0: premium in the last period

Tp=4;Ti=10; Td=1; ##parameters for PID control, here the Ti plays a key role, it should fit the update period

get Pdex, Pf, premium;
premium0=premium;
p=Tp*premium;
i= Pf/Pdex-p-1; ##set initial value for p,i,d to make the initial calculated feed price equal to the current feed price in system.
d=0;

while True:
   
   get Pdex, Pf, premium;

   i+=premium/Ti;
   if i>0.4: ##set limit to i, to speed up the backward adjustment if premium change to cross 0
       i=0.4;
    if i<-0.3:
       i=-0.3;
    d=Td*(premium-premium0);
    premium0=premium;
           
   p=Tp*premium;
   
   if p+i+d>0:
     feed price = Pdex*min(1+p+i+d, 1.5, 1.03*Pf/Pdex) ##limit the feed price comparing to Pdex and current feed price while the adjustment is upward.
   else:
     feed price = Pdex*max(1+p+i+d, 0.98*Pf/Pdex)##limit the feed price comparing to current feed price while the adjustment is downward.
   time.sleep(120) ##update every 2 minutes.

gdex-witness plan to adopt below algorithm for bitCNY price feeding, the core idea comes from PID control theory.

Pdex：BTS price in DEX in bitCNY
Pf: current feed price
premium: current premium
Premium0: premium in the last period

Tp=4;Ti=6; Td=1; ##parameters for PID control, here the Ti plays a key role, setting it to 6 will make i reach maximum in 20 hours if the premium keeps 2% or higher.

get Pdex, Pf, premium;
premium0=premium;
p=Tp*premium;
i= Pf/Pdex-p-1; ##set initial value for p,i,d to make the initial calculated feed price equal to the current feed price in system.
d=0;

while True:
   
   get Pdex, Pf, premium;

   while (10 minutes passed after the last execution)：
         i+=premium/Ti;
         if i>0.4: ##set limit to i, to speed up the backward adjustment if premium change to cross 0
            i=0.4;
         if i<-0.3:
            i=-0.3;
         d=Td*(premium-premium0);
         premium0=premium;
           
   p=Tp*premium;
   
   if p+i+d>0:
     feed price = Pdex*min(1+p+i+d, 1.5, 1.2*Pf/Pdex) ##limit the feed price not higher than 1.5 times Pdex or 1.2 times current feed price while the adjustment is upward.
   else:
     feed price = Pdex*max(1+p+i+d, 0.91*Pf/Pdex)##limit the feed price no less than 0.91 times current feed price while the adjustment is downward.