What is the problem you are trying to solve?
To stabilize the value of the BitCoin versus other currencies and goods/services
Any "instability" isn't a problem. It's the solution to finding the right level.
The problem would be price stability. If you don't believe me you're welcome to try and stabilize it in either direction. Be prepared to lose a lot of dough though.
Maybe you've heard of central banks? The FX market? They try to do that in FX all the time. Can you name even one that has succeeded?