A possible set of solutions is: - temporarily reduce max leverage on the pairs without changing the min margin required (to avoid causing liquidations to existing positions that used old requirements) - haircut the collateral USD value on riskier collateral (BTC=0, ETH=20%,...)https://twitter.com/lawmaster/status/1206090023180931073 …
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Wouldn't the traditional way to do it be to have circuit breakers? Perhaps could be reasonable for extreme movements. But then should margin be enabled on low liquidity high risk pairs in the first place...
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Agreed. That it's best to not have margin enabled on low liquidity pairs. Circuit breakers with margin trading are really dangerous in crypto, especially since there is no coordination and shared rules among exchanges. So if you're the only exchange to stop trading...
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Imagine big market makers stop hunting each other and exchanges all have variable short circuits to trim leverage. It will be even more of a battle of leverage multiples and aggressive short circuits. Fake market, insular economy. Only ends one way.
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I read the comments in thread.. at least 2 of those tokens had 100% of the available margin taken up so new people trying to short just couldn't. Thats definitely happened on bitfinex before.
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Is there a reasonable solution to that besides ramping up borrow fees based on supply available
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