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General Discussion / Re: New mechanism to handle bad debt (black swan)
« on: October 19, 2018, 01:24:04 pm »
I like the idea of not performing a global settlement if a very small amount is under-collateralized, maintaining the normal function of the bitasset, but it does feel like the individual debt holder in said position is getting off lightly given that they defaulted on their loan.
It'd be great if their account was partially nerfed until their under-collateralized position is bought off the market, like temp-disabling LTM (inflating their BTS DEX fees), perhaps disabling borrowing the same bitasset or even highlighting their account as a known "bad debt holder" within in the BTS DEX UI (similar to known-scammer account warnings)?
Do you not think that global settlement as it's currently implemented should trigger if a majority of a bitasset's supply have defaulted on their loans though? Or should the proposed mechanism operate for the full 100% of supply?
It'd be great if their account was partially nerfed until their under-collateralized position is bought off the market, like temp-disabling LTM (inflating their BTS DEX fees), perhaps disabling borrowing the same bitasset or even highlighting their account as a known "bad debt holder" within in the BTS DEX UI (similar to known-scammer account warnings)?
Do you not think that global settlement as it's currently implemented should trigger if a majority of a bitasset's supply have defaulted on their loans though? Or should the proposed mechanism operate for the full 100% of supply?
