The painful history of BTS has taught us a lot, we realized that it is impossible to make smart coin peg exactly at any time, and we need to change to stop the way of pegging from hurting the whole ecosystem, measures are taken accordingly.
After the implementation of BSIP58, BSIP76, BAIP2, bitCNY and bitUSD are no longer expected as exactly pegged asset at any time. they are derivatives of BTS that can peg under some conditions, and peg off under some other conditions, they can still be used as tools of leveraging, risk controlling, arbitraging and so on. the great benefits is, the death spiral disappeared. BTS holders need not to worry that market crash will lead BTS price to 0.
I observed Maker’s behavior in the recent market crash, it behaved like BTS in old times, and due to the booming gas fee and the settlement rule of DAI, many margin called CDPs are settled in very low price, some bidders get the collaterals in very cheap price and what they paid cannot cover the debt, Maker team has to pay the gap by selling MKR. Maker team and debt position owners are both losers in this market crash.
I am glad that BTS has left this page behind, although bitCNY and bitUSD are now in big devaluation due to BSIP76, we successfully avoid the crash of BTS price, I believe not only debt position owners, but also all BTS holders would like to see this.
We expect to restore the peg of the smart coin by making BTS price be stably above the threshold, the way to get this is to increase the system income by charging from margin call, force settlement and UIA market fee, and pay public expenditures and buy back BTS using the accumulated fees, if all the things going well, we can get features for this in release 4.0.
I hope the ones who always call BSIP58, BSIP76 and BAIP2 “market manipulation” can update their idea, we are just utilizing creative solution.