Algorithmic mAsset on top of algorithmic stablecoin

Markets and Macro
1

Hi all,

I would like to throw an idea that can the terra adopt the same mechanism of Algorithmic stablecoin to Algorithmic mAsset for further use case of Luna.

For example, Google oracle price is $2,442 then $2,442 worth of Luna can convert to 1 mGOOGL and 1 mGOOGL can convert to $2,442 worth of Luna.

The same mechanism of Algorithmic stablecoin will create more capital efficiency for stock trading in Terra blockchain (and no premium problem same as in Mirror)

But of course, the fluctuation of stock will cause Luna more fluctuation. The rise of stock price means mAsset need to be bought and convert to Luna, cause more Luna supply.

Thanks for discussing

2

One thing I don’t like about this is that makes LUNA holders counterparty to a changing pool of risk. Right now all of the assets minted against the core mechanism are fiat, so by holding LUNA you are betting that LUNA will outperform fiat over long term which is easy to understand. If we start minting stocks or other cryptos against it I think it could make being a holder of LUNA more challenging. What if one of the stocks ends up being the next Amazon?

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3

You can swap luna and mAssets on Terra Station. It just passes through UST.

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