[Proposal] Help UST Pegging. Increase estimated minting capacity to $1200M

this means you first kill luna and after you hope to become live with CPR

Up to this moment, ~$3B UST has been burned.

The burning speed has been too slow, due to the capacity bottleneck. Higher mint/burn capacity will help market get to equilibrium faster.

https://terra.smartstake.io/history

If $LUNA issuance do hit the upper limit before $UST peg, it will need governance procedure to increase or remove the limit.

Otherwise, $UST will go down significantly until such increase is established.

As for LFG stability fund, the best time to bail out the protocol is when total $UST + $LUNA market cap is about $3B - $5B.

The market has its own forces. Unfortunately, we cannot control mass mentality. Some people will panic and withdraw and take a loss.

1 Like

Merhaba size sonsuza kadar güveniyorum ve başaracaksın sadece bir kahve doldur kendine ve biraz dinlen çok iyi yerlere geleceğiz biliyorum :pray::pray:

Alter the mechanism for the time being. By adopting a similar mechanism to Frax, except 50% USD and the other 50% being as is.

A market is a market.

Having an artificial bottleneck of mint/burn capacity is the key reason we are all in the current position.

Unfortunately, there is no easy way to save both $UST peg and save $LUNA price at the same time. Something have to give.

$UST peg is the core of the confidence for Terra and Ecosystem.

Bail out fund should be consider when bail out has become feasible.

Yes, completely agree with you on the logic here. I am not here to debate you on it, I’m one of the builder community and supporter of yours.

Your answer is clear enough for me, it’s logical, so if this is well spread to the public, I think sell pressure will be relieved significantly. Can LFG make an educational material for this proposal? I am seeing thousands of people are retweeting Do’s twitter but think only 1% of people are truly understanding the mechanism here.

Explanation on 1) how bottleneck caused spiral here, and traders speculating/front-running + people bank-running caused issue 2) how this proposal will remove bottleneck in relatively ‘short’ period (I think 2-3 days would be sufficient under current assumptions) and 3) such expectation will be led into faster pegging, and hence even no need for burning excessive amount of overhang USTs, because once UST peg is restored, people will comeback home in easy words would be very, very helpful.

Also from my perspective, 4 pool is going live in Curve next week, and unless gauge changes meaningfully, we would all be fine thanks to market mechanism next week. Understand LFG would not be possible to commit on it given we never know what will happen for next vote actually, but it seems like people completely forgot about 4 pool now. This should not be irrelevant with restoring the peg in longer run, so it would be also helpful to recover trust here.

4 Likes

Look guys, right now is an emergency. We need to burn the 14 Billion UST that left anchor and ASAP. This will do the trick. Luna price can go down to 0.00001 cents for all we care but without UST holding peg its worth 0. So lets put our disagreements aside and argue later when we still have an anchor to chat on.
i would actually hope to bump it even higher but I don’t think thats possible at this point. arb bots will be able to move this capital quickly with the changes though.

10 Likes

Again, I am not debating here. I just want TFL to better communicate with the community. Most simple users still don’t understand what this suggestion implies, and that’s the reason why there’s still binance dumping.

People were relieved that Do twitted something so the UST was going up to 60 cents but then people read proposal, didn’t understand one inch of it, and they were disappointed that there’s no imminent capital injection, so there’s selling flow again.

As a builder I understand it is super hard to communicate properly with simple users. Explanation does not have to be 100% accurate. Let’s use their words so that people can understand, and broader users can know what you are proposing here.

9 Likes

If LFG Bail Out fund can step in some point, the end $LUNA price will be better than you predicted.

The key is not to use the bail out fund until the time is right

1 Like

Agree with everything you said as well.

It may take time for community the lean and understand.

Let’s spread the knowledge and get more buy-in from the community.

1 Like

will projects in the Terra ecosystem continue to build on Terra with UST as as stablecoin ?
at this point i dont know if any project will trust UST. without that , UST there is no reason for a luna token.
am i missing something very obvious here ?

1 Like

This is absolutely correct. You need to put out the fire first before thinking about higher-order issues. Not to say make a bad decision, but given what we know right now, releasing the bottle-neck of UST mint/burn rate and focussing on re-peg is step #1 in all scenarios, or there’s nothing left to save. Vote is underway and nearing quorum.

2 Likes

If you restore the peg you might save something. Without the peg, there’s zero possibility of building anything. So this question is academic until an attempt to save the peg has been made.

2 Likes

i just invested all my money on the peg. I hope I’m not gonna regret this.

1 Like

We can all have a consolidated message and share with the community on the message.

  1. Bring $UST to peg is the highest priority.
  2. Increase Mint / Burn capacity to $UST / $LUNA. Bring market to equilibrium faster
  3. Yes, this will put pressure on $LUNA price, but the alternative is worse for $LUNA
  4. Ask LFG not to deploy capital prematurely, wait for the right time
  5. When enough $UST are burned, coordinate the community and squeeze !

Please suggest other key points.

7 Likes

Please suggest other key points in the message.

We can engage with community and ask more people to spread the knowledge.

1 Like

what do you do for people …

people lost 99% off money

no money for community and squeeze

There should be a focus on the squeeze that’s getting set up. People, especially regular folks, are coin operated. They are motivated by the promise of reward. And a win for them will simultaneously restore confidence.

1 Like

We can provide quick info on bottleneck. Let people know that depeg was supposed to be restored quickly but we do have maximum amount of Luna that can be minted on a day and that has caused some issue.

1 Like

hey, Evgeny here, CEO of Wintermute. We have no stake in the network whatsoever, but I felt like writing anyway. Protocol should do exact opposite. You cannot save UST, but you can save LUNA. Kill UST by limiting burn to negligible amount per day. Reroute all economics to USDC or DAI or create new algo stable, this time with better mechanics. I’m sorry for your loss but this is the way.

4 Likes