If we need more funds to stabilize a peg, then a stabilizer proposal (not necessarily the current one) could hold the funds and use it to trade instead of sending them back. It could be managed by multisig or a smart contract that reduces any risks of them being stolen. I don't think the 1% needs to be changed. I can't see an actual budget situation where you would want to or need to drain the fund in less than 100 days (I know the rate drops as the balance does so 100 days isn't quite right, but close enough)