I am not familiar with Tobin tax, but to my understanding, even before depeg, this tax isn’t supported by CEXs and only applicable on chain. While Divergence protocol relies on CEXs to implement the protocol and people willing to sell below peg to generate the funds for collateral, why would people sell below peg just to get cut and receive less? Then comes the question if so little volume will be traded below peg, how can we gathered the required fund for collateral? Won’t everyone just trade at peg and no increment will be made due to so little collateral will be collected?
Rather than incrementing peg by market trading price, taking (Total collateral amount) / (Total supply of USTC) as the peg for USTC is more measurable? So that it reflects the true value of USTC ( peg starting from 0? ) with collateral backing it and if markets in CEX is trading below the peg, the funds in collateral can always be used to buyback cheaper USTC in the open market on CEX, seller still receive the amount they choose to sell and buyer can profit from the difference from peg as collateral visible on chain in the collateral fund ensures there is the required amount to peg USTC at the stated peg. This will create the demand needed to support the peg on CEX and do not require CEX’s support to implement the Divergence protocol?
Alternatively, funds used for collateralizing USTC by utilizing idle funds in community pool? My proposal for increasing income for community pool for your reference. Community pool will be shouldering the risk being liquidity provider to generate the profits while providing liquidity for LUNC & USTC on chain, without cutting deep into seller / buyer and off chain support. Combined with unidirectional limited LUNC >> USTC Swap pool & staking / saving module, would this be more feasible?
I understand the staking / saving module tries to provide use case and demand for USTC, but this alone doesn’t provide enough demand especially with the history of how Anchor has crumbled, market confidence is a question.
Using BTC as one of the collateral in the basket is good as this is head of crypto market, but I am not 100% sure how BTC can be used to collateralize USTC as the price is so volatile, fiat backed stables gives market participants confidence, but then USTC is not truly decentralized money as it is partially backed by centralized money. Tho I agree that this is as good as we can get until there’s an alternative or maybe BTC becomes much less volatile that provides the decentralized asset to be used for collateral.
The swap mechanism ( mint/burn ) is the main reason why LUNC is able to achieve such rapid growth with all the dapps build on chain before depeg, but I am not sure if the community will accept the swap to be turned back on anytime soon…