Summary
I’m speaking with a project at the moment to replace the market module with an algorithm that has been in development for over two years. The dev and I have worked together for almost two years. Please bear with me while I ink out the implementation and publish here as soon as possible. It’s made for a stablecoin that bears many similarities with UST and supports additional assets, like $LUNA, bonded tokens, staking, and traditional assets.
Motivation
A fork nukes confidence in us. Using UST or LUNA to repay our debts isn’t viable. Just burning $LUNA and/or $UST doesn’t fix the underlying economic levers. And the regulators are knocking at our door. If we don’t find a way to fix the actual issues, we’re likely to end up DOA.
I still believe that restoring the peg will fix this ecosystem. We need enthusiastic minds at their finest to come up with a solution to fix what was wrong, not just forking away from the problems leaving everyone behind
I’m not necessarily proposing a fork. Just proposing a couple of minor governance changes and a swap from the market module to a more robust solution. Rn, Terra is an attempt at mirroring the IMFs SDRs.
That system is built on a much larger asset pool than we can manage risk in.
Soros attacks will (from what I gather) always work in this scenario.
Flash loans can exacerbate the issue as DeFi grows in depth and scale.