Rescue LUNC and USTC and restore wallet swaps

We all know that when UST and USD are decoupled, the swap ratio of UST and LUNA in the wallet has been maintained at 1USD, resulting in a death spiral effect and a rapid increase in the issuance of LUNA.

Now I propose to restart swap, but the swap ratio is as follows:

  1. When USTC/USD is within the allowable fluctuation range of 0.9-1.1, the swap ratio of USTC and LUNC in the wallet is the same or close to that of most exchanges. There is no arbitrage profit between wallets and exchanges.
  2. When USTC/USD<0.9, after the de-anchoring starts, the value of USTC/LUNC in the wallet will automatically become 1.1 times the value of USTC/LUNC in the exchange, and arbitrageurs are encouraged to exchange USTC to LUNC in the wallet, and then Go to the exchange to sell LUNC, buy USTC, and restore the anchor. At the same time, when exchanging in the wallet, a 3% handling fee is charged for the destruction of LUNC.
  3. When USTC/USD>1.1, after the de-pegging starts, the value of USTC/LUNC in the wallet will automatically become 0.9 times the value of USTC/LUNC in the exchange, and arbitrageurs are encouraged to sell USTC and buy LUNC on the exchange . Go back to the wallet to convert LUNC to USTC and restore the peg. Similarly, when exchanging in the wallet, a 3% fee is charged for the destruction of LUNC.

There is no way for us to ask exchanges to burn LUNC, but even so, with an unbalanced swap ratio, arbitrageurs still have about 7% of their arbitrage profits, and the other 3% can be used to burn LUNC.

English is not my native language, so please forgive me if I’m wrong. Participate in discussions and work together to improve the plan.

Do everything to save LUNC and USTC!

NEED to establish a pool (LUNC)that included in 6.9t, it means large funds are required to purchase LUNC from the market. Otherwise, total supply beyond 6.9t will be worse.

This is still too early. We have to restore LUNC for first. But i think when we will do USTC will start restoring too.

Tolerance for peg should be larger. 0.7 to 1.3.

Don’t imagine that LUNC can quickly reduce the supply!

LUNC has increased nearly 20,000 times from 0.35B to 6.5T. However, USTC has not increased. Currently, it is only 10B, and its market value is less than 0.1B.

No matter what method is used, there is no way to satisfy the LUNC holders before and after the crash, and there is no way to airdrop new LUNA to solve the problem. The best way is to gradually reduce supply only through long-term arbitrage.

In addition, the balance range is 0.9-1.1 or 0.7-1.3, you can continue to discuss.

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