Thank you! While I understand the benefits of this proposal it leaves me a bad taste in my mouth. However, the end justifies the means (bad debt must go away fast). So while I’m supporting the proposal, here are some more thoughts:
What about utilising current market conditions in determining the exact parameters of an OTC deal? Here are two ideas:
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This idea fails since I misread the original posts: It’s about $100k worth of DBR, not 100k DBR. I’m sorry. currently 4.92 ETH gives you 100k DBR on the open market. At 15% discount it would cost 4.182 ETH to buy that much. Dumping the 100k dbr instantly after purchasing for a discount, it would give the bad actor 4.3657 eth (.1837 ETH instant profit). If we reduce the discount to 10%, users would pay 4,428 ETH for the 100k dbr and the market wouldn’t support him in selling for profit (-0,0623 ETH). So I find 10% still very generous and provides the price more safety.
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There is a more difficult approach as well. That would be an escrow that holds the dbr for the borrower and so he can’t control it. (Only for OTC)