I'd like to talk about the fact that BitAssets are not pegged to stop them rising above their target price.
It was discussed her this week: https://bitsharestalk.org/index.php/topic,25223.0.html
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I'd like to talk about the fact that BitAssets are not pegged to stop them rising above their target price.
It was discussed her this week: https://bitsharestalk.org/index.php/topic,25223.0.html
IMO, not a problem for anyone other than the debt holders - they could be force settled above the feed price, but that's the risk you take as a shorter.
If this entity is only selling bitUSD and never buying back its debt, then say BTS was at a high value and dropped to a low value it would drain the reserve pool and if/when the worker proposal ended the entity would have insufficient collateral to buy back their shorted bitUSD at market rate (Especially if it's millions of bitUSD) which could potentially push bitUSD into a black swan state.
Getting market pegged assets such as bitUSD added onto exchanges would be more productive than injecting liquidity into markets at the risk of depleting the reserve pool & causing black swan events.