The ultimate roadmap for solving the UST-LUNA problem

Governance & Proposals
1

Summary
First of all, before solving the problem, we must first find out what the root cause of this crisis is, in order to effectively solve the problem.

  1. The death spiral is the source of the crisis.
  2. Market problems need to be solved by the market.

Motivation

  1. UST is no longer linked to BTC or LUNA. Should be pegged to more stable assets such as other stablecoins or USD, USD treasuries.
  2. Establish UST flexible savings mechanism. Set a flexible interest rate, when 1UST is less than 1 USD, you can get UST+LUNA double high reward savings with an annualized interest rate of 100% or higher; when 1UST is equal to 1 USD, the annualized savings interest rate is the market rate, such as 6% .
  3. When 1UST=0.1 USD, use the reserve funds to acquire UST in large quantities. No additional USTs will be issued.
  4. Restore the Terra ecology, gradually destroy the additional luna, and promise to control the total luna circulation at one billion.

Proposal

  1. Guide over-the-counter funds to purchase UST to return its value.
  2. Guide the market to build confidence, establish transparent information release, and maintain communication with investors.
1 Like
2
  1. UST is no longer linked to BTC or LUNA. Should be pegged to more stable assets such as other stablecoins or USD, USD treasuries.
  2. Establish UST flexible savings mechanism. Set a flexible interest rate. When 1UST is less than 1 USD, the annualized interest rate of savings is 100% or higher; when 1UST is equal to 1 USD, the annualized savings rate is the market rate, such as 6%.
  3. When 1UST=$0.1, use the reserve funds, and buy a large amount of UST for $0.1. No additional USTs will be issued.
  4. Restore the Terra ecology, gradually destroy the additional luna, and promise to control the total luna circulation at one billion.
3

savings ust reward luna