the way a one time margin call could work
take a screenshot of each CDPs debt position. send the cdp an invoice amount due by a certain date. the cdp owner would need to burn that amount of iusd by x date or else get redeemed at par $1 the equivalent amount of ada from their cdp to cover the amount due for the iusd owed.
if cdp user sees the amount due and mints more to pay off this debt then there may npt be an effective correction in the peg as more iusd is simply being minted to burn to pay off this extra amount due. but those who can afford to take on the same amount of debt and pay more minting fees and continue to pay interest will do that in order to pay for this margin call or else get redeemed. and those who are strapped of resources, similar to those who are close to the RMR, will not be able to avoid getting redeemed in these scenarios. IE if they are short iusd and cannot pay off 5-10% of their debt or mint enough to pay for the margin call then they will be forced to be redeemed at par no matter what their collateral ratio is.
this may not necessarily seem fair to larger cdps who are in the “safe zone” but its also not fair to assume these same cdps are not the ones who are causing the depeg. if they have enough collateral to mint more or if they have the iusd readily available to pay off the margin call then they will avoid loss except for potential minting fee or transaction costs…
it is also not necessarily fair to newer cdp owners as they are now getting a margin call shortly after taking on the debt, and the reason was because the rest of the cdp owner’s doing. but any new cdp user should appreciate a peg and a collective effort from the rest of cdp users to support the peg by only having to come up with a small % of their debt to keep the peg stable at any given time.
this would incentives larger CDP owners to burn 5-10% of their debt, or get put into the redemption bucket. this would bring millions of iusd to redemption at par, or cause a lot of purchasing of iusd in the market because these cdp owners will decide to burn to meet the call instead of getting redeemed. be-it only a small % of their total debt
it may be difficult to determine how much iusd would need to be called from the cdps at any given time. if there was a margin call for 5% of all CDPs, then perhaps a repeg would happen prior to all the cdp users paying their margin call. so it may be more of a wave towards the end of the timeline to pay off the margin call or meet the debt required to avoid getting redeemed until the last moment. and potentially there could be a too much burned and cause a premium to iusd, so we would need to turn this off in order to avoid iusd above $1
so yes the cdp users would need to check on their CDPs to meet a margin call or else get redeemed. similar to how thee should check their cdps to make sure they understand the latest interst, rmr rates, liquidation rates, fees, and other dao, parameter changes.
this could potentially really lower the interest or RMR ratio. cdp owners will have a more collective responsibility to keep iusd close enough to meet 5-10% of their debt. which is not an unreasonable ask.
This would spread out the responsibility of the peg to all cdp users, and would be less impactful for any one cdp user to meet the necessary iusd to correct the peg
its likely that given all the cdps and the amount needed to repeg that even less than 1-2% could be needed to be called from each CDP in order to get the peg back up to where it would need to be to peg.