İf you buy 1$ lunc/ustc and after broken peg buyers different income
Cp/op stolen after buyers more have much
And you want income increase
People may have enter LUNC / USTC at difference prices, but this is not the main point of this proposal. CP is for spending on development work and dapps on LUNC blockchain, so what’s the issue to find ways to increase the income of CP so we have more funding to spend on different dapps / development the community voted for?
CP and OP is NOT the same. You can say Oracle pool gets extremely diluted by the depeg event, but CP is owned by the community.
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Why not make for this new wallet, with only donate system
A wallet will need to be held by someone that the community can trust, a multi-sig wallet will not solve this problem. While a pool identical to community pool will allow these funds to still be kept in the hands of the community and bounded by governance.
As funds put in liquidity pools can be withdrawn when we have enough liquidity providers in the market, there is no way to return donation to people.
In fact, any person can put their LUNC & USTC in these liquidity pools to provide liquidity on chain and earn the fees by providing the liquidity on chain. However, as one of the main risk for liquidity pools that if two assets ( in this case LUNC & USTC ) moves at a different rate ( i.e. LUNC +1000% while USTC only +500% ), there will be impermanent loss, liquidity provider will “earn” less when compared to only holding the asset in community pool ( excluded swap fees earned ), in this case 4.423% less.
Factor in the APY of swap fees collected ( assuming 25%, subject to market conditions and trading volumes ), that gives community pool a 20.577% APY for funds that put into liquidity pool ( excluded price appreciation ) compared to doing nothing ( 0% ). Calculator for illustrating above example.
With the volatility of LUNC & USTC, not many will be willing to risk potentially missing out on the gain in price for LUNC & USTC. While there are many spending proposal for CP out there, increasing constant stream of income for CP will help to pay these expenses and give more room for community to choose what to build on LUNC. This proposal propose the community as a whole provide liquidity on chain, that will eventually increase income ( tax proceed ) to community pool and liquidity on chain by utilizing idle funds currently in CP. Impermanent loss will be off-set by swap fees earned over-time and price appreciation of LUNC & USTC.
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How to up cp ,if finish pool this end
%20 apy anc ust scam and you tell this ? How up to pool where to find money
You may refer to What are liquidity pools. This helps to explain what liquidity pools are and how the 25% APY assumption comes from.
In short, swapping fees ( trading fees ) comes from traders trading with the liquidity pool ( traders use smart contracts on chain to trade → increased on chain transactions, tax proceed & burn ). Liquidity provider ( CP suggested in this proposal ) in liquidity pools earns the fees paid by traders.
Liquidity provider can exit the liquidity pool by withdrawing the pool share they provided in liquidity pool and take back the asset by proportion of shares in the liquidity pool to return to CP.
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First back depeg or payback for users after make new liquid system
You will ran into the problem of do you have chicken or egg first.
We currently do not have the funds to payback users in full, but this should not stop the community to find ways to bring USTC back to peg.
When USTC is bring back to peg, users basically get beck their money as USTC = $1 USD.
Funds will be needed to bring USTC back to peg, this is a fact, how to do it is the question.
Duncan, Redline and others, including this proposal here is finding ways to achieve this. You will have to sacrifice something to gain something. Different proposals suggest different point to sacrifice, this proposal specifically is sacrificing the potential different of price increase for LUNC & USTC, making use of the idle funds in CP ( resources we have on hand ) to generate funds much needed by CP currently for spending to accelerate the rebuild process.
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İ dont want repeat lost scam coin
That’s why we have to earn the funds for collateralizing USTC to prevent another death spiral.
Finding a workable algorithm / ways to hold the peg is one thing, you will still need something with value to back USTC in order to calm market participants when they panic, if funds used to back USTC can be viewed on chain by anyone, people will be able to check and this can stop people panic effectively.
Although this proposal focus on increasing income of CP, additional funds generated in CP can be used to fund props that passed by governance not limited to funding the repeg of USTC, but broader development of LUNC as a whole. This all depends on what the community wants, but more money in CP that the community can spend.
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Hi There,
Thank you for your proposal. As a general rule, most items are usually feasible from a development perspective, however, it’s always a matter of cost and complexity, and whether or not the community wishes to adopt the proposal.
Right. Now, mcap without TFL/Oracle/contracts just 75 mln.
I think we can buyback 97-98% ustc in 0.015-0.1 range. Need VC with 200-300 mln~. Seems like not very big, because after repeg lunc will fly (x50-100-…).
No this scam