Thanks again.
As discussed in Telegram:
I think it's better to use highest bid price (in terms of buying BTS with bitcny) than to use latest fill price to judge if bitcny is at discount. Likewise, use lowest ask to judge if bitcny is at premium. Perhaps using volume weighted moving average price is best.
Recently I feel the scripts made quite some false positives. The adjustment is too sensitive when bitcny is at discount, causing unnecessary margin calls. When someone bought up some BTS with little volume, the script thinks bitcny is at discount, thus lowers the price feed and triggers margin calls, which usually cause the price swing more than expected. Also the 110% MSSR is a big penalty to debt positions and big pressure on buy support.
Since we're able to "control" existing debt positions (via margin calls) to counter discount, but can only "incentivize" new debt positions and buy support to counter premium, that means we have more "power" on the former, so it's wise to save our power as much as possible. So it's better to adjust slower/softer/ with smaller steps when at discount, and adjust quicker/harder/with bigger steps when at premium.
For same reason, for my "adjusted_price" algorithm, it's wise to apply larger scale when at premium, but smaller scale when at discount.
Wish this helps.
Topic: [Witness Proposal] 1.6.129 - zapata42-witness (Read 23876 times)
