until the ust loses the downslope, it was undermining 1 ust ~ 1 dollar LUNA, as 1ust = 1usd, but now that just one usr costs about 0.10 cents, 1ust is undermining at a cost of 0 , 10 cents of LUNA, which means that ust is sold in the market at the price that is mined is 10 cents of dollars !, miners don’t care that it only costs 1 dollar or 10 cents as they earn a small arbitrage percentage based on the price at which it is located. they extract,
I didn’t really mind if the collateral were bAssets or native assets… but I was initially thinking IBC assets like OSMO, JUNO… bAssets might provide better stability however
do not complicate to simplify the formula to keep the peg is simple !, to print 1 ust you have to burn 1 dollar of luna (that’s all). so it will never lose the peg, as 1 ust to print really cost 1 dollar
if it was that simple then why isn’t it working, properly if at all? and what can we do if we can’t bring back the mint/burn?
rUST becomes a stablecoin backed by a delta neutral stategy on UST
if you tried deltra neutral farming with Mirror Protocol then some of what I’m describing here might make sense, if we can create a destablecoin that shares an inverse relationship with UST and then bind the two for delta neutral I think we could have something…
well the jury is out on whether they can re-implement the mint/burn mechanism… thanks for re-iterating!
now it sounds like the common ground between my approach and your arguing point is the matter of the Price Oracle which should reflect the value of 1 USD to make either scenario work… I can only say that my approach doesn’t really require teams stepping into mint/burn and that even if they do, those efforts might reinforce my approach to help keep UST pegged, since it’s focusing on the bet for UST to fail…
During this whole fiasco I read that LUNA suffered an oracle attack through a Chainlink outage, which I believe happened during the BAYC auction that pushed ETH gas fees through the roof… I’ve been trying to figure out what types of attack vectors are introduced in my approach – if the price oracle issues can be solved and if rebalancing the dUST supply can be done effectively that it doesn’t reintroduce the problems we’re facing… all of this is high level stuff, but the matters have gotten me moving from exploring browser extensions for wallets to exploring Github for code examples
an attack on Oracle or almost impossible, in the advanced state of Oracle that there are in circulation, but even if it happens it is a temporary thing and the peg recovers quickly
UST inflation is closely linked to the ecosystem’s need to be diluted on the market, if the ecosystem expands there will be more need for ust, if the ecosystem shrinks it will burn excess ust for luna