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BSIP 87: Force Settlement Fee Ratio #263

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Update bsip-0081.md
bitcrab authored Sep 8, 2019
commit b350ab13784fc52037f930a34cdc0055b0a1e05a
13 changes: 7 additions & 6 deletions bsip-0081.md
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BSIP: 0081
Title: Reduce MSSR of bitCNY from 1.1 to 1.05
BSIP: 0081
Title: Reduce MSSR of bitCNY from 1.1 to 1.05
Author: Jerry Liu <bitcrab@qq.com>
Status: Draft
Type: Protocol
Created: 2018-08-17
Discussion: https://bitsharestalk.org/index.php?topic=26928.0
Worker: no
Abstract
We here propose to reduce the Maximum short squeeze ratio (MSSR) of bitCNY from 1.1 to 1.05, to lower the shorting incentive.

Motivation
BitShares is a financial system with leverage, here in the traders there are BTS longers and shorters, surely the traders are finding their chance to make profit in trading, if shorters can always find chance to make big profit by shorting BTS, that’s not a good news to BTS ecosystem, from the perspective of the whole BTS ecosystem consisted of DEX and smartcoin, we need to review the rules continually, while guaranteeing fairness and the risks always be released in time, we also need to try optimize the rules to encourage BTS longers, to provide enough incentive to make BTS ecosystem to grow up.
### **Abstract**


### **Motivation**
Bitshares community becomes more and more aware that BTS need a powerful economy model, one simple selection is to charge the tradings and buy back BTS using the accumulated fees, as did in many exchange platform tokens, the continuous income can help to provide smartcoin liquidity and sustain BTS price. Margin call tradings are potential to contribute a big part of the income to the system, however up to now the margin call trading is not charged, we need to find a suitable way to get this part of system income.

Rationale
Currently there are 2 key smartcoin parameters which are maintained by witnesses, they are MCR(Maintenance collateral ratio ) and MSSR(Maximum short squeeze ratio) , now MCR=1.75 and MSSR=1.1.