If I understood correctly,
The UST was unpegged because many. people panicked sold.
Why not buy UST back now so it would peg to USD?
6.5 trillion Luna were minted, the supply after the unpeg should be burned.
From a legal perspective, Luna can go to 0 but UST should be pegged to $1,
otherwise I can’t see how the founders could avoid prison - unfortunately.
If the problem is sell pressure on UST, would it not be possible to reduce the sell pressure by offering people to stake on anchor with a lockup period of say 1 year to help repeg? So basically turn anchor into a certificate of deposit.
One thing we could do is either offer existing UST owners to keep trading it on the exchanges, or put it into anchor where they have the option of 1:1 redemption in the future. Perhaps spin off the UST on anchor into a UST2.0 to differentiate it from the existing UST which can continue to trade on exchanges at the free floating price.
I think in the future this UST2.0 or anchor should also have part of its structure the ability to limit liquidity from anchor during times of stress. This is no different than what exchanges already do, and something I think should have been done to prevent the de-pegging from getting out of control in the first place. Otherwise there’s no differentiation between people who have skin the game versus those who are just yield farming and running as soon as panic and FUD spreads.
It looks like UST is moving up slowly, from 0.13 to 0.22 already.
Good idea. But the APR should be the same as Binance earn on BTC - 3 to 5%
Do you know why none of the countries or governments pegged their currencies toward Gold or Silver? Because history has proven that pegging won’t work
The cheaper Luna is going down, the worse off UST will perform