Building a stablecoin as Nebula Cluster, on top of other stables!

Hello Community,

I am wrapping my head around for 2 weeks now why UST failed and how an next generation stablecoin should look like.
Further i think, stables is our predominant field, we as Terra Community that is can do better, than just adopting USDC or DAI.

I have an pretty simple idea and want your opinion about it:
Nebula Clusters are Tokens in Nebula Protocoll that sit on top of other tokens. The amount of tokens that beeing bought from the underlying token adapts automatically depending on the price and market cap. The effect is, that you are not or at a lot least less exposed to price fluctuations.
Nebula Protocol

The new stablecoin would be then a Nebula Cluster, that sits on top of existing stables. The cluster adapts according to market cap or price fluctuations. The underlying stables can be choosen by goverance votes.
I can be USDT, BUSD, DAI, USDD etc. or even algorithm stables like RAI
Rai description

We dont need to worry about pegging anymore or how the redemption should be done.
As long there is one “stable” stablecoin out there from the underlying assets, we should be pretty safe. Lets say, Tether looses the peg, the protocol would shift automatically the underlying assets to the other pegged stablecoins.

What do you think?


I think this design is ok if we want to have a stablecoin backed by centralized ones.

I really liked the ux that you could spend UST on terra for gas fee. I hope whatever stablecoin design gets implemented, we add the functionality of using it as network fee.

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True, the mint and burn mechanism was what made Lunc unique.
But therefore the whole Terra core has to be modified.
This is step two.
Step one is to have any stablecoin at a smaller scale first, to prove the mechanism works.