Set the arbitrage profit to a maximum of 1%, specifically: when 1USTC>1$, turn on LUNA burning mode; example: when 1USTC=2$, you need 1.99 USD LUNA to exchange 1USTC, you can earn 0.01 USD, 3.98 USD LUNA exchange 2USTC, you can earn 0.02 USD, when 1USTC=1.003$, 1 USD LUNA is exchanged for 1USTC, you can earn 0.003 USD, 2 USD LUNA is exchanged for 2USTC, you can earn 0.006 USD. When 1USTC<1$, turn on the USTC burning mode ;Example: When 1USTC=0.5$, it needs 1.98 USTC to exchange 1 USD LUNA, earning 0.01 USD, 3.96 USTC exchange for 2 USD LUNA, earning 0.02 USD, when 1USTC=0.995$, 1 USTC exchange for 1 USD LUNA , earning $0.005. The lower the arbitrage profit, the closer the USTC is to $1.
Not enough LUNAC to pay the 10 billion debt, look at my proposal, we do not need to repeg at 1 USD, USTC almost naturally pegged at 0.01 USD
Without USTC, there would be no current market value of LUNA. The two coins interact with each other. LUNA helps USTC to anchor the US dollar, and USTC helps LUNA to increase its value.
This mechanism not only enables USTC to quickly anchor 1$, but also solves the USTC inflation problem and the burning problem of LUNA. For example, now 1USTC=0.02$, 49.5 USTCs are exchanged for 1 US dollar LUNA, earning 0.01 US dollars.