I've been an advocate for this for some time, but for a different reason. We need a backstop (seller of last resort) for shorts while the market is not liquid.
Since squeeze protection kicks in after 10%, that means there is a "normally" operating market between 0-10%. Let the market do its thing within that range.
If you can't tighten the normal range of Smartcoins to <10% then you don't have a product imo.
Nubits cost you less than a few percent to buy and sell, UpholdUSD too I assume, so if you have a short holding period the risk of either of those failing isn't enough to justify paying a much larger spread for BitUSD.
We either need to incentivize the shorts to come closer during these market conditions/adjust the collateral requirements/other.
I agree with your recent believe "If you can't tighten the normal range of Smartcoins to <10% then you don't have a product" ( I do not agree that we should go to Nubits gimmicks if need be. but it not here nor there).
And it is simple - it starts from the head - If BM shorts his BTS positions at something ridiculously high... say 7x collateral ratio he will prove he believes the product as well as the price will no go THAT much south, he will show (not just say) that he will search of ways to not dilute whenever possible (some changes/work do take dilution worker proposals as they just do not generate fees by themselves). He will start proving BTS is not just a foundation with purpose of sponsoring his coding a new idea, seemingly every 2 weeks.
Then the other 'mild tone strong believers, but do nothing when money are involved' will follow suite and short at 7x collateral.... then the crazy longs buying bitBTC at 10 - 15- 20% premium will just buy BTC instead of pumping the bitAssets' prices up, for no logical reasons.
It's that simple.... Nubits fake pegs will fail (or they will grow to true market approaches), but copying those just cause they have not yet...is wrong.
PS
BTW I came of killer use case for bitUSD...available RIGHT NOW with a day or so of svk and xeroc's time...and got a zero response. Not a good sign for the above simple plan working...just saying.
PSS
BTW what's up? You are way over your limit of 888 posts.