Shorting Attack Protection?

[bitcrab]

My idea is essentially to stop maintaining the peg when we can't afford to maintain it.

The cost to maintain the peg "in all conditions" is simply too big for us. Better to give up at some point.

Make sense.
We have paid too much to maintain the peg of bitCNY and bitUSD, which also partly cause the weak trend of BTS, and bring huge pain to the community.
gdex.witness plan to follow in.abit to guarantee the feed price be higher than 0.22CNY or 0.035USD from tomorrow before community reach an advance consensus.

[abit]

Would this happen it would have a nice side effect.People would be buying with major assets on CEX as it would be significant cheaper.

No, bitUSD, bitCNY and etc will devalue, thus buying from CEX is not cheaper, if you're talking about my idea but not bitcrab's.

Bitcrab's idea will lead to devaluation in downtrend of BTS, but premium in uptrend which will result in force-settlement issues.

[Thul3]

Would this happen it would have a nice side effect.People would be buying with major assets on CEX as it would be significant cheaper.

[abit]

My idea is essentially to stop maintaining the peg when we can't afford to maintain it.

The cost to maintain the peg "in all conditions" is simply too big for us. Better to give up at some point.

[bitcrab]

Last night, BTC experienced a price fall of more than 15%, and BTS more than 20%.

What we have oberserved at ZB:

In one hour 400M BTS are sold, obviously not real trading.
BTS withdraw is forbidden in a long time.
as many traders have accounts in ZB and other CEX, they can arbitrage without withdraw/deposit, so finally BTS price in all the CEX fall down.

IMHO this is a typical shorting attack, the margin call mechanism in DEX actually always help this kind of shorting attack, the whole BTS ecosystem suffer this shorting attack for long time, I feel we need to find some solution for this, as we have applied GS protection, we also need some "shorting attack protection"  , otherwise I can't see the future of BTS.

the key point of this protection is to avoid rapid and big price fall in price feeding following the market price, for example, we can introduce MA5 in DEX as a reference:

Code: [Select]

if MA5<1.05*market price
   feed price = market price
else feed price =(MA5+market price)/2
I believe that we need one shorting attack protection algorithm to avoid the disaster like last night. we have to do something to avoid BTS price fall to 0 in rounds of shorting attack.

before the community reach consensus on this topic, can we do something?

abit is now feeding 0.22CNY and 0.035USD instead of feeding market price, is that a senseful and urgent measure to help BTS to go out of the shorting attack trap? https://bitsharestalk.org/index.php?topic=29633.0

as some witnesses had done to avoid bitCNY falling in GS before the GS protection BSIP is approved by stakeholders?