To make the USTC token automatically soft-pegged to 1 dollar, you need to use the changing scale of the exchange of the Luna token for a USTC token.
The most favorable exchange rate of the Luna Classic token should be at the rate of 1USTC to 1 dollar.
The more the USTC rate deviates in any direction from parity with the dollar, the less favorable the exchange rate should be.
For such an exchange system, no collateral is required at all.
Any person or company trading in cryptocurrencies will have an economic interest in making a profit if the USTC rate deviates from $1.
I draw special attention to the fact that this system does not require the minting of tokens!
Also, no material or financial support is required for this system.
This proposal will be put to a vote.
In order for this proposal to be considered, the USTC peg at 1 dollar must first be made. You can’t just magically modify a parameter and make it worth $1.
If the developers agree with this system, they will introduce a variable scale for exchanging USTC tokens for Luna Classic tokens. And the token rate will gradually or even sharply move to $1 through trading.
new USTC scale in percent: 1 USTC=1 USD=100%
1 USTC=0.9 USD=90%
1 USTC=0.5 USD=50%
1 USTC=0.1 USD=10%
example: 1USTC=100 Lunc ,10 LUNC=1 USD
I buy 1000 tokens LUNC for 100 dollars.
USTC token price is now 0.5 USD
so now for 1000 LUNC tokens I can buy twice as many USTC
I sell these USTC tokens on the exchange and get 200 USD
for these two trades I earned 100% profit
now I will be able to conduct such trades many more times and earn 100% profit on each
as a result, prices for USTС and LUNC will start to skyrocket
USTC token will soon approach 1 USD
and all these exchanges take place through terra station
this will allow not only to make a soft binding of the USTС to the USD, but also to significantly accelerate the burning of both tokens.
This strategy is called arbitrage.
Cryptocurrency traders will make a profit until the USTC returns to the balance point of -1 USD.