1 ust = 1 dollar

how you get 1 UST equal to 1 dollar, very easy, I thought it already worked like this.

  1. What is happening now is that extracting 1 ust costs ~ 1 ust of LUNA
  2. What needs to happen is that extracting 1 ust should cost ~ 1 dollar of LUNA

so I wonder if this was an oversight or left there on purpose to be exploited in the event of a disruptive market with a short leverange


1 UST was always 1 USD of LUNA and hence the death spiral of Luna.

1 Like

you did not understood what he said sir…

That’s the reason why it depegged - terraswap spreads widened.

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,

1 Like

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

This is what I was thinking…

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…

because they create 1 UST, burning only 1 UST of LUNA, not 1 dollar of LUNA!


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

1 Like

if 1ust is 1 dolar of luna, inflation goes way higher. should happen but only to non arbitrageurs. terraclassic.org

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