Here are some Ideas to debate about some ways to re-peg the USTC, slowly but methodically and maybe even getting some fun and making some people happy in the way or just giving them a way out of their losses. I hope they are well described, since I´m not native English but Spanish. I´m trying my best here.
What I’ve been thinking about lately is how to repeg USTC in a way that bad debt gets payed and LUNC can take off its back this problem, reenable the burning algorythm once USTC gets reppeged and then drastically reducing LUNC supply organically.
*This ideas need the ustc minting to be disabled to be functional. Ustc must be a limited active and a slowly reducing one too.
In order to do so, my proposals are theese:
1. We need a way to create a pool of USDT or BUSD, USDC, DAI, stablecoins that are actually more or less stable at this moment. That pool can be created with a portion of the community pool or restructuring the 1.2%burn so 0.6% burns LUNC and 0.6% is sold for those stables.
Then, we organize some of theese systems (just to name 2 but more ideas will surely flood when community work together).
A. Bids system in which terra network makes a public offer of paying ustc for, let’s say… 25cents usdt each. That would be a +700% easy win for those who want to take the bid. 700% is a lot for just 1 time and surely lot of people would be happy to sell. Some investors will make a lot of money and some of them wont. That’s not our problem.
B. A “wait in line” scenario in which people willing to cash out at 25cent (we could start by 10 or 15 cents) must acquire a limited Nft that’s like a number in waiting line or a pass to the cash out event. So, let’s say that 100k usdt are in the pool (and pool accepts donations aswell so it can be refilled faster), that means 1 million ustc can be bought in this event if there are people willing to cash out at 10cents. The lower they are willing to sell their ustc, the better place in line they get and more eligible they are.
That 1 million ustc bought should be either burned, frozen, or burned to mint a new fully collateralized stable which will be inyected into the market only in the collateralized portion of it supply.
This way we can be burning, paying debt and minting a new secure stablecoin not algorythmic but collateralized for the ecosystem, attacking 3 problems at the same time in an organized way.
It probably will be most beneficial to small investors that are willing to sell/rebuy/sell cycle and then get payed for their losses (in some cases, life savings or family savings that destroyed lifes).
2. A Terra Classic Community Lottery (or Bingo or Wheel of fortune). This Lottery or “wheel of fortune” runs weekly (for example), or as soon as it gets sold out in its 100 tickets.
Each ticket is sold as an NFT for let’s say 10 usdt. That makes a fundrise of 1000 usdt. The prize being not the money itself but “THE RIGHT TO SELL USTC AT USDT PEGGED VALUE IN 7 TIMES THE VALUE OF THE TICKET”. So the prize is 70% of the pool prize rised and the other 30% is acumulable for either next wheel of fortune session or for the stablecoins pool of the 1st idea. This way probably lots of little investors will have the oportunity of being lucky, maybe more than one time.
We re talking about small numbers, but what makes it interesting is the possibility of runing it from weekly to 10 times a day, since it can be ran as soon as the targeted ammount is reached, the game starts. It can be like automated by smart contracts.
A smart contract will release the prize to the wallet that has the winning NFT ticket as soon as that wallet sends the USTC to the smart contract. It only can be the max ammount of the equivalent of USTC that the prize is at market price in that moment.
Anyway this are just 2 ideas are just 2 ways of helping ustc to repeg. In reality what we would be doing is paying debt at a low but accepted price, so buying ustc would be more interesting and more swaps would mean more onchain burn. Better price too, and even FUN for a lot of “not-so-happy” investors.
Thanks for reading and commenting on my ideas.