Hi, main focus now is on the fork, nobody seems interested in defending Ust, but maybe it can survive in Luna Classic and why not in New Luna too. If we can restore the peg, the system will show strength and gain some tractions again.
So how to help Ust reach the peg? My idea is to create a new token, a rebasing one, let’s call it r-ust. It’s something like Ampl if you know this project. I mean it’s a token that can change it’s circulating supply changing the number of tokens in the wallet of all holders.
Precisely r-ust will work this way to help Ust: if ust < 0.95$ then r-ust decreases its supply proportionally, if ust > 1.05$ then r-ust increases it’s supply proportionally. 1 R-ust should be always swappable with 1 ust if 0.95 < ust < 1.05. Contractions and expansions will trigger buys and sells of the tokens, adjusting the price of R-ust towards 1$, when in the range it can be swapped to ust by holders if desired.
Difference with ampl is that Ust / r-Ust is a dual token mechanism, while Ampl is a single token.
This new mechanism should help to keep the peg. But now we are in a dramatic situation, so (if technically possible, I’m not really sure about that) I propose to convert immediately all the ust in r-ust and wait that r-ust reaches the non rebasing range. When r-ust is at least 0.95$ the Terra algorithm should reaches the peg automatically via arb. Please note that I mean that r-ust cannot be used to mint Luna in any situation.
Maybe this is just a crazy idea. I wish everybody will be fine in any way this situation will evolve.