Sounds like another Rube Goldberg contraption.
So, for the risk-averse, they have the option to peg this BTC-collaterized stablecoin to another stable coin called DOC, while the adventurous are just sticking to BTC by another name, Bitpro. There are numerous stable coins to chose from already, what makes DOC any different?
What makes this DOC different from others?
As users, off course, my view wouldn't be much different as yours. Moreover, the platform doesn't exist, and we both don't test it yet.
(-Even if I try to answer, it's just my own conclusion from what I've read-)But at least, their CEO has been post some short explanation above your post, and off course, they have more info on their web. Unfortunately, their white-paper doesn't publish yet. Let's wait for the white-paper!
The explanation of the CEO by giving a simple example gives a notion that this platform might be worth watching for.
Hopefully, the actual scenario will be as simple as that. Because most of the time, there are so many factors in play when the project comes to life.
We can speculate if the project will going to hit it in the crypto community once we see their platform in operations.