Repegging UST plan

It’s not for a permanent backing, merely to pay out all UST holders at $1 given enough time and moderate risk. The proposal will then terminate.

Then why do you need UST to peg at $1 at all? Just let them pay you directly without going for all the hassles to repeg UST at $1 to facilitate your cashout.

I agree in theory advance notice could be given that the BTC is to be divided and sent to all UST holders which would be the same thing. But this proposal focuses on restoring the peg as intended, which may be simpler for some people to simply hold it rather than trading bitcoin and tracking it. It would also give the appearance of being unfair if everything is finally settled with a single BTC payout that’s worth less than $1 per UST.

Also, additional funding might come in, the value of the fund increased. Perhaps more LUNA used as collateral. Anything could happen in the future. Things like that couldn’t be represented with a single BTC airdrop to UST holders.

More LUNA does not mean more Value… as you can see from the current price. It only means stealing value from existing owners.

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The same logic can be used to limit LUNA minting. That way if LUNA is healthy it can help re-peg UST. But no LUNA should ever be minted when its market cap is less than the number of UST.

This idea is part of the Burn and Remedy proposal. The addition of BTC to help re-peg in the same way is good. A more aggressive usage would be to inject it to help with the LUNA bootstrap. I think both/either would be ok but prefer the more aggressive approach.

I’m not advocating using more LUNA given the current market situation. Merely as an example that new strategies could exist in the future to buy up UST supply on the open market, which a one time airdrop would miss.

Exactly! and also UST withdrawal limit should never be more than the reserves.

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I like the idea - how about linking mcap of luna to ust → luna minting. The higher the Luna Market Cap the more can be minted the lower the less. This makes sure the ust conversions can be absorbed. This way the variable becomes time (preference) (i.e the slope of the ust curve over time)

This is a good idea with a new protocol. I think whatever new protocol is used should employ something like what you describe. Although my proposal is merely concerned with repaying all current UST holders with the $1 they’re entitled to, and then terminating.

Exactly. The amount of UST that can be redeemed can be limited to a set percentage of the market cap over the number of UST.

I would also suggest that no one address can redeem more than say 1% of the cap per day so no one can “hog” the redemptions or try to manipulate it somehow.

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Here is a new proposal: Proposed Recovery Plan (Proposal)
Please review & provide your inputs…

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Regardless of whether the funds exist, UST can’t be repegged unless the incentive is to burn LUNA to get more UST, which would drain liquidity from UST and give it to LUNA. So, the alternative is to back it completely, if it’s possible, and move forward. Or forget it – just drop UST altogether. Moving forward as we are without UST, however, is the only way. UST will kill LUNA otherwise. And I don’t mean just the token–I mean the entire ecosystem and all projects that depend on it.

There is no LUNA without UST. The project will lose all credibility and LUNA will be valued at $0.

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What are you talking about?? UST is backed by a BTC reserve from LFG. Luna has been created just for adjust peg in case of necessity, which is the reason why it dumped after depeg.
LUNA depends from UST, not the opposite.

TerraUSD’s reserve asset = LUNA

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What about this 22B RESERVE?

That’s where you’re wrong. There’s is no UST without LUNA because LUNA is the backing behind UST. Which came first? Not UST. UST is worthless without LUNA. You are depending on people to buy LUNA to be your backing, often not knowing that their investment is for your exit bag.

Cryptocurrency is free market luna failure is free mechanism but you claim ust is “stablecoin” and it is unstable thats deception! ! If you think ust is off the hook, it doesn’t matter, every project will use stablecoins to cheat in the future.

So both are needed. No need to talk about removing one of them. If you have LUNA without UST that project has no credibility.

A stablecoin is needed for Terra, but UST should have never been dependent on LUNA. The maths don’t work out. If you don’t know that, you either didn’t read the whitepaper or you don’t care.