Proposer: Do Kwon
Founder, Terraform Labs
Prop 27 has been instrumental in helping accelerate the throughput of minting Terra stablecoins to meet the demand fueled by new apps in the ecosystem. Yet, demand continues to outstrip supply - today, UST still continues to trade at a slight premium to the dollar ($1.01 ~ 1.02), and swap fees for Luna → UST swaps are above 5%.
We propose further increasing the minting parameters to:
- Basepool 7M → 13M SDT
- PoolRecoveryPeriod 200 → 130 blocks
This would roughly double Terra’s stablecoin minting capacity.
Given that Luna liquidity has well over 10xd since Prop 27 was introduced, we should be able to make this 2x adjustment with lower risk of frontrunning attacks than before.
Luna 