Summary
The peg needs more backing. There’s a bunch of hyperdeflationary assets on Polkadot. If you get on as a parachain you can back the stable coin with those without needing trust. I don’t know how this should exactly work, but something like a lending protocol seems in the right direction. Vault type system with each currency being redeemable for Luna at a specific rate would work as well. The entire point is too have multiple fail safes.
Motivation
Make UST’s peg more resilient.
Proposal
In terms of backing I’d recommend Acala. I also believe Parallel is hyperdeflationary. Some of the other parachains might be hyperdeflationary as well.
Non-Dot coins could work too, but require additional steps. I believe Astar and Interlay allow other blockchains to bridge onto Polkadot. Not sure how secure those two bridges are.
XRP and PulseX (when it launches) could also act as hyperdeflationary assets along with BTC. XRP burns a little bit on every transaction, and PulseX burns a bit for every purchase on the Dex. There’s a ton of hyperdeflationary assets out there that are super cheap. I believe Pulse is also deflationary. If people start using them the supply burns faster. I believe that would help the peg.
You could even add some form of bond. Hex, lDot, and sDot could function as a bonding mechanism. Having multiple failsafes will help keep the peg going during stress.
Richard Heart could probably help more. He seems to know all of the monetary theory better.