$USTC ↔️ $INRT Repeg Plan/Proposal

arunadaybasu · April 21, 2023, 8:14pm

NOTE:

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Offline PDF (ATTACHED and also) available at:

This document is divided into smaller components or sections that can be browsed using the bookmarks on the left (if viewing on desktop in the Dropbox Paper application).

It is a request from the original author of this document to take the time to go through each section in detail. Making a TL;DR of this document would not have been possible since it has multiple sections with hyperlinks and images.

Introduction

1 $USTC is currently 98% below the peg of 1 USD, but 1 $USTC is 64% above the traded value of 1 INR (Indian Rupee - ₹).

INR is the official currency of my country and it is 82 times lesser than a dollar.

In other words,

$1 USD = approx. ₹ 82 INR

So,

1 $USTC = $ 0.02 = ~ ₹ 1.64 INR

It may not be possible to repeg $USTC (without a complete buyback or reverse split of the blockchain) since it is 98% below value, but it is definitely possible to issue a stablecoin that can only be bought using $USTC.

In this plan, neither is a reverse split required, nor is building any complicated modules required

In fact, a stablecoin can be issued on the Terra Luna Classic blockchain pegged to the Indian Rupee INR backed 100% by reserves.

The following block diagram describes the complete ecosystem which will have to be designed and developed in order to repeg $USTC.

Fig 1: Complete USTC ↔️ INRT Repeg System

Although the block diagram above is represented as a singular unit, it is in fact divided into 5-6 modules, 3 different processes and 2 interconnected group of specifications.

I will attempt to describe the complete process in layman terms so that the process and the work required to be done is understood by technical as well as non-technical members of the community. I will limit myself to using technical terms as much as possible in this document.

What is $INRT

$INR-Terra or $INR-T, abbreviated as, $INRT is a native stablecoin of the Terra Luna Classic ecosystem pegged to 1 Indian Rupee (₹).

$INRT is the first truly decentralized trustless stable cryptocurrency coin in the world

$INRT will be issued on the Terra Luna Classic blockchain, developed and maintained wholly by the Terra Luna Classic community.

$INRT shall NOT be legally undertaken by TFL, Do Kwon and/or any other entity, team or individual currently represented in the Terra Luna Classic ecosystem.

$INRT shall be developed and maintained ONLY by the developers of the Terra Luna Classic ecosystem.

$INRT shall be governed by the Governance process (gov module) of the Cosmos ecosystem and a separate governance portal and discussion forum will be made available to the community members to govern all affairs related to $INRT.

Tokenomics

$INRT shall be issued on a strictly on-demand basis and there shall be NO airdrops issued to participating wallets
$INRT shall NOT be airdropped to “pre-crash” wallets indicated in the snapshot before the crash of Terra-Luna
There will be absolutely NO KYC permitted while issuing $INRT by any entity which requests for $INRT to be issued

In order for us to be able to issue $INRT on the Terra Luna Classic ecosystem as a native token that has a value, we require a $USTC pool that shall be converted to an initial $INRT pool.

Total Value of $USTC Pool required (as initial investment) - 3,000,000 $USTC

Value of 1 $USTC - $ 0.02 USD

Value of $ 1 USD (in Indian Rupees) - ₹ 82

Thus,

Value of 1 $USTC (in Indian Rupees) = 0.02 x 82 = ₹ 1.64

Total Value of $USTC Pool (in Indian Rupees) = 3,000,000 x 1.64 = ₹ 4,920,000

Since, 1 ₹ = 1 $INRT,

Total Initial Supply of Tokens - 4,920,000

Value of 1 $INRT (in USD) = 1 ÷ 82 = $ 0.012195 USD

NOTE:-

The above is a representative figure for the number of tokens issued initially since the total number of tokens will depend upon the total investment available for the investment during the launch of the token sale
The actual number of tokens issued will be slightly lesser than the calculated number since there will be some consumption of gas fees in the process of moving the $USTC and issuing the tokens for the initial token sale

Conditions/Constraints/Specifications

The specifications below have been divided into two separate sets to understand how they correlate with each other and how the process flow of the system works.

Although it is in no particular order (since this is a decentralized system and all processes work parallel to each other), the following specifications describe the general conditions under which the system shall operate.

Specification Set 1

$INRT can only be bought in lieu of $USTC and/or stablecoins issued on the Terra Luna Classic ecosystem
$USTC and/or stablecoins issued on the Terra Luna Classic ecosystem create the reserve pool required for $INRT, when $USTC and/or other stablecoins are traded/swapped for $INRT
Since $INRT is a stablecoin, the reserve pool has to be maintained 1:1 with another asset class that will balance the number of $INRT tokens being issued in exchange for $USTC and/or other stablecoins
Instead of maintaining this reserve pool as fiat (in a bank), we will maintain this reserve pool as a transparent blockchain reserve asset class of $BTC and $ETH
When we exchange $USTC for $BTC+$ETH, some other wallet would be buying an equivalent value of $USTC from us which remains in circulation and in the buying wallet
Since it is assumed (in Point 1) that the buying wallet has bought $USTC to exchange for $INRT, during the time the $INRT is being issued to the buying wallet 0.1% fees will be deducted to burn (buy-back) an equivalent amount of $USTC and 0.1% additional fees will be charged to be sent to the Terra Luna Classic Community Pool for funding development work on the blockchain
If the buying wallet instead stakes the $USTC with us (details in Specification Set 2), then the process flow will follow from Specification Set 2, otherwise, buying wallet will follow process flow from Specification Set 1 Point 5 again

Fig 1: Complete USTC↔️INRT Repeg System

Specification Set 2

Rewards for staking $USTC with us will accumulate yield as $INRT, avoiding flooding supply of $USTC in circulation during rewards withdrawal
Staking options for $USTC will be enabled with Auto-Compound (every 24 hours) and a lock-in period of 12-36 months (stakers will not be able to unstake before 12 months)
While unstaking $USTC or claiming rewards as $INRT 0.1% fees will be deducted to burn (buy-back) an equivalent amount of $USTC and 0.1% additional fees will be charged to be sent to the Terra Luna Classic Oracle Pool for rewarding stakers on the blockchain
No fees shall be deducted for the Auto-Compound function

The conditions or specifications described above have been translated into a block diagram (below) so that the process flow of the complete system can be visualized together.

Process

The complete repeg system described above can be subdivided (for sake of simplicity and understanding) into three separate parts of the system.

I have attempted to view and describe these parts individually and have provided details of each part under the following heads.

NOTE:

Part 1 and Part 2 are separate processes
Part 3 is a common process for both Part 1 and Part 2

Part 1 - The BUY Process

Fig 2: Part 1 - The BUY Process

Process Starts At: IN

Process:

Buying wallet provides liquidity to our $USTC Pool
Equivalent value of $INRT is calculated and issued to buying wallet
While buying $INRT,
0.1% $USTC is sent to Burn Module
0.1% $USTC is sent to the Terra Luna Classic Community Pool
$USTC from buying wallet is sent to Buy Module to exchange to $BTC+$ETH Reserves

Note - For sake of simplicity I have not shown the Burn Module here, which has been explained in Part 3.

Part 2 - The STAKE Process

Fig 3: Part 2 - The STAKE Process

Process Starts At: IN

Process:

Buying wallet stakes $USTC (provides liquidity) to our $USTC Pool
If $USTC is Unstaked coins move OUT of the system
While Unstaking,
0.1% $USTC is sent to Burn Module
0.1% $USTC is sent to the Terra Luna Classic Oracle Pool
If $USTC is Auto-compounded coins go back into $USTC Pool

Part 3 - The SWAP Process

NOTE:-

This is an INTERNAL swap “process” and has NOTHING to do with the Cosmos swap module (which is part of the bank module) that is currently defunct (market swap) on Terra Luna Classic.

THIS IS NOT A SWAP MODULE. THIS IS AN INTERNAL PROCESS TO DESCRIBE HOW $USTC IS CONVERTED TO $INRT AND APPLIES DURING BUYING AND UNSTAKING

Fig 4: Part 3 - The SWAP Process

Process Starts At: $USTC POOL

Process:

Buying wallet sends $USTC to Burn Module
Buying wallet requests to receive $INRT for $USTC
$USTC is sent to Burn Module
Remaining $USTC is sent to Exchange
Reserves are created in $BTC+$ETH
$INRT is issued to buying wallet
Buying wallet sells or stakes

Modules

The plan has been divided into 2 sets of Specifications and 3 Parts of a parallel process system above which make up the high-level design of the system.

Now, we shall further divide the system into 6 different modules for a low-level explanation of the technical aspects of the system and to understand better what is required in order to code and execute such a system.

Module 1 - BURN Module ($USTC L2)

The Burn module is a misnomer for the function of this module, since a burn is simply a buy-back in the technical sense of the term, and a burn would entail to sending the coins to a zero address coded into the blockchain.

Such an address generally exists when a blockchain on Cosmos is instantiated with it’s genesis configuration file and should exist for $USTC as well.

Burns can be alternatively implemented by converting $USTC to a CW-20 token and then burning the token.

Module 2 - STAKE Module ($USTC L2)

The Stake module is simply a liquidity pool provider and handler. It does NOT cut the supply of $USTC directly since staked $USTC will be used to provide liquidity for the swap functionality in which buyers can make instantaneous swaps at market price between $USTC and $INRT.

We are already burning a substantial supply of the $USTC while unstaking and buying $INRT. This process does not require the development of a L1 staking module and can be handled completely on L2 functionality already present on the Terra Luna Classic blockchain.

Module 3 - BUY Module ($INRT L1/L2)

The Buy module connects to the $INRT Pool to issue $INRT tokens to the buying wallet. This module would already be present when the new $INRT blockchain is instantiated so there is no development required to build it specifically.

This buy module will enable $USTC to be sent to the $USTC Pool and track exactly how much is to be issued to the buying wallet. It will confirm the transaction when the equivalent value of $BTC+$ETH has been exchanged into the Reserve Pool, securing reserves 1:1 for the $INRT being issued to the buying wallet.

Module 4 - SWAP Module ($USTC L2)

As described before this, the Swap module is simply a common functionality to both the Buy and Stake modules, which is required for both modules to function properly.

This Swap module will enable $USTC swaps to $BTC+$ETH and track both issued and issuing wallets for confirmation of transactions on both the $USTC chain as well as the $INRT chain.

Module 5 - $USTC Pool ($USTC L2)

The $USTC Pool is one of the most important components of our system since it will be used to issue the initial set of tokens for $INRT which will be the first stablecoin correctly pegged to a currency after the Terra-Luna crash.

The initial investment required to create this pool has been described in the Budget section.

Module 6 - $INRT Pool ($INRT L1)

The $INRT resides on the $INRT blockchain and it is separated from the Terra Luna Classic community via a separate governance portal and discussion forum.

Tokens will be issued to holders in lieu of an equivalent amount of $BTC+$ETH which shall be held in reserves.

Thus, this $INRT pool of tokens issued during the creation of the blockchain will be inflationary in nature and new tokens will be issued/minted according to reserves we hold 1:1. This is similar to holding reserves in a bank in fiat, but in this case, we are holding it in a wallet in $BTC+$ETC.

Timeline

It will require approximately 6 Months to develop the complete repeg system which involves developing and issuing a new stablecoin $INRT on the Terra Luna Classic ecosystem and enabling buy/trade/swap functionality for $INRT using only $USTC.

Budget

I require a supply of depegged stablecoins from the Community Pool for my work so that I can use those coins to work on how I can gradually bring them back into the system like $USTC, and enable buying $INRT stablecoins using the other stablecoins which had been depegged in the crash.

For the complete project of 6 months, I would request the community to provide me with the following funding:

For the $USTC Pool - 2,000,000 $USTC (approx. $ 40,000 USD) — will be completely invested to issue and convert into new $INRT coins

For 6 months of L1 and L2 development work - 1,000,000 $USTC (approx. $ 20,000 USD)

Total Investment requested - 3,000,000 $USTC (approx. $ 60,000 USD)

Team

I, Arunaday Basu, am currently the sole developer of this project. If it is required to take additional help for the project, I will take the help on my own salary and the community does not need to pay anything additionally apart from what has been mentioned in the Budget.

You can find an introduction to me here, and here and the following is a brief description of my professional experience along with my social/public profile links:

I am primarily a full-stack JavaScript developer and MERN (MongoDB, Express, React, Node) is the stack that I generally prefer to work on. I have almost 13 years of development experience in various languages, stacks and CMS. I am professionally a business owner and I have a Bachelor of Engineering degree in Computer Science and Technology I have been involved with various startups and I have been employed in a company (MyGlamm) which is a unicorn startup company now. I have also worked on a blockchain project on EOS (MediPedia), as a React developer and then with one of the best advertising agencies in my country (Zero Budget Agency), in various positions, from development to strategic marketing. After that, for the last 3 years, I have been managing my family business of over 26 years in electronics & electricals, miners and other equipment and continuing to work on my own coding projects. I am a resident of India, and apart from coding, I am passionate about trading on the cryptocurrency market, mining, history and art.

You will be able to find my current projects on GitHub and as you will notice, I have already been contributing to the Rebel Station wallet for Terra Luna Classic. You will further notice in my GitHub repo that I am working on a wallet for the new blockchain called Archway.

All that I am sharing with you are either past projects that I have worked on or side projects that I am working on currently.

LINKS TO MY PROFILES:

LinkedIn: https://www.linkedin.com/in/arunaday

GitHub: arunadaybasu (Arunaday Basu) · GitHub

Twitter: https://twitter.com/klothtweets

PROPOSALS ALREADY IN DISCUSSION:

Pros & Cons

Disadvantages

This is a complicated proposal so it will take time to build, issue, test and release a stablecoin pegged to an actual currency - almost 6 months
Since I am a solo developer, I will take more time to develop this than I would have taken if I would have worked with an entire L1 Team of 6 people, but I do NOT wish to do so with the current iteration of the L1 development team nor am I willing to overcharge the community by making up non-existent developers
I cannot possibly fund this proposal or work without money. It would have been possible had this been a small dapp or even a wallet. But I will need to provide FULL-TIME work to the community (6-8 hours each day) to complete this project within the stipulated 6 months period, and I cannot do this without a guarantee and appropriate remuneration of my employment with the Terra Luna Classic community

Advantages

Burns supply of $USTC and other depegged Terra-Luna stablecoins directly
Introduces a correctly pegged stablecoin to the ecosystem before $USDC becomes the default stablecoin of the Cosmos ecosystem/market
I AM the developer who is going to develop this entire system with minimal external help. I am directly reachable 24x7 via Agora, Discord, Telegram, Email and if required, on Whatsapp
I DO NOT require the help of the L1 Team to do my work and execute this plan end-to-end. I also do not require the help of other developers since I am a Senior Full Stack developer myself
I will provide DAILY updates with complete details about work done. If I take a holiday I shall inform the community beforehand about leaves well in advance
The word “burn” has been mentioned 17 times and the word “USTC” has been mentioned 75 times in this document, so this plan deals, without any doubt that I have, directly with burns as well as $USTC

Declaration

If this proposal is passed by the community, I will provide the community with a Stamp Paper issued by the local Sessions Court in my local jurisdiction in which it shall be notarized/attested by a Magistrate/Corporator that my employment with the Terra Luna Classic community shall last for 6 months during which time I shall be employed full-time with the community, and that the community has the right to terminate my employment with the community at any time by passing a vote in governance. This document shall be made available to ALL members of the community.

Notes

The community has, till now, invested close to $ 300,000 USD on L1 & L2 development and is about to invest close to $ 40,000 more on L2 development. Next quarter, the community will need to invest close to $ 120,000 USD more to fund the L1 Team which continues to struggle at it’s work for almost ONE ENTIRE YEAR now. The results we have to show for $ 300,000 USD investment till now, are shameful, to say the least. I will go as far as to say that it was a direct breach of community trust with money that was taken from the Community Pool.

There is absolutely NO ONE and NOTHING that is working on developing a solution which re-funds the Oracle and Community Pool(s) of Terra Luna Classic directly. This repeg plan might be the ONLY way to re-fund the Community Pool considering that other developers are not even bothered about the near-empty Community Pool from which they are withdrawing their salaries. I do not think they understand that there is no more money for Quarter 3 of L1 development work after Rebel Station is funded. Other considerate members of the community have forcefully passed proposals to reduce the funding of the Community Pool. A complete disaster is about to take place in less than 6 months if we do not fund a plan, with the little money we have remaining, that directly sends money to the Oracle and Community Pool(s).

This proposal is a culmination of many ideas from the number of discussions I have read on this particular topic of a possible $USTC Repeg (including Ziggy), but the reason I am proposing this is because I will be the primary developer and project manager handling this entire plan. I will not be working with the L1 Development for this work since it is not required to do so according to the plan. Also, L1 Development is slow, so I do not wish to depend upon their development to achieve goals of the community.

Having said that, I understand that Duncan’s proposal (Ziggy) is in discussion and I have recommend him to work with the L1 Team. I have kept that in mind and this proposal does not interfere with his proposed $USTC Repeg plan since I will not require L1 Development to be done for my plan, so both plans can work independent of each other and yet try to achieve the same goal of $USTC Repeg.

Thanks for reading this till the end.

$USTC_↔️_$INRT_Repeg_Plan_Proposal.pdf (525.6 KB)

Olmate · April 21, 2023, 11:46pm

Thank you arunadaybasu, it looks like you have spent a lot of time preparing this proposal. I do hope others appreciate your efforts and I also hope any criticisms are constructive.

RabbiJebediah · April 22, 2023, 12:45am

How are you going to defend the peg?

From what I can see, you source startup capital for the warchest from initial USTC-INRT swaps & transactions, shaving a portion of that and filling the peg defense with BTC+ETH collateral. Kwon had over 2 billion dollars in there and failed to defend the peg - what hope do you have with only a fraction of a fraction of that? You’re a whole order of magnitude below required reserves to have any chance of holding the peg steady in case of bank runs or just general oscillations and attacks on the stablecoin.

Also, your entire plan lacks any capital controls outside a simple tranche/buyback system… which in and of itself is ancient design/tech at this point, and has successfully been exploited to crash Luna almost a year ago. You have no on-chain or off-chain protections, no (dis)incentivization layers, no rebound mechanics, no liquidity traps, no capital inflows, no (de)accelerant modules designed to control the direction of capital movement… you’ve got nothing apart from the collateral warchest. You also fail to account for external pressure vectors that’ll absolutely wreck your entire concept.

And to top it all off, you endeavor to keep the swapping algo disabled! This is the main engine of the whole Terra Luna system, and the main reason arbitrage worked the way it did. The atomic swaps are the core of the stablecoin’s functionality - removing them means you’re left with nothing but a hollow simulacrum.

I’ll give your whole writeup another read just to be fair, but from what I’m seeing it’s incredibly fragile.

It’s not enough to declare one’s stablecoin “stable” - one needs to be able to keep it there as well.

There’s also no additional incentives for arbitrage, so that’s another (and massive) net negative.

Shalom!

arunadaybasu · April 22, 2023, 6:59am

Thanks for the constructive questions. I will attempt to answer them to the best of my ability.

This is one of the details that I have intentionally left out in the proposal for the sake of simplicity.

My target investment for the token launch is $10 million, not $ 40,000. I require this $ 40,000 in a $USTC Pool to get that 10 million from the investors because without a genesis block with the correct token amount, the token itself can’t be launched on mainnet.

There is no particular reason why I chose this figure of 40k. It could be 20k also, but anything less than that won’t be enough to convince investors to put in their money as well into the coin. Which is why I asked for 40k, which should be a substantial amount in INR (I will explain later why this is important) to convince investors.

What I am gonna do with 10 million then is convert the entire investment into $BTC+$ETH.

I still haven’t touched the $USTC liquidity pool yet from retail users (the 40k).

During a cr(ash, what is gonna happen is that we will liquidate the value that we hold in $BTC+$ETH (which would have already made profits and increased in value by then) and fund the $USTC Pool so that the TVL of the $USTC remains constant even during a cras)h.

Now the question you are asking is what will happen if BTC + ETH cr(ash together. Well, I have chosen the combination of BTC and ETH specifically because it is highly unlikely that both will cra)sh together. Generally, whales shift money from BTC to ETH when they see BTC falling and vice versa.

Let’s consider that it is DOES cra)sh and BTC + ETH go to 20% below invested value. The result of this will be that 1 $INRT will go below peg. Well, there is no issue if it does actually, cause you forgot that we are still holding the same amount of BTC + ETH in our reserves. Say it takes 1 month to recover from the lowest point and come back up again to the invested value.

During that time, because of the arbitrage opportunity, there will be more buyers for $INRT. Not less. So you will make MORE money, not less. Exactly what happened with USDC. It repegged cause they were still holding their reserves in the exact same denomination. BTC and ETH will stay as BTC and ETH in our reserves. Theoretically, only the value is changing for these coins on a daily basis, so when it falls, it goes slightly below peg and when it profits, it goes slightly above peg.

That’s normal. That’s how most stable coins operate.

For example, DAI is held completely in crypto and it fell during the USDC crashed. Nothing happened. Absolutely nothing. Some people didn’t even get to know that it depegged and then repegged again. Both USDC and DAI did that over a weekend.

Cause they were still holding the exact same number of coins. It’s just the value of those coins had crashed. That could happen temporarily. That’s not an issue with a large number of investors invested into your coin.

P.S. You’re missing an extremely important feature of both DK and Sam - they both “sto)le” customer money and literally, in the case of DK, a portion of it was found in his crotch, within his body. This isn’t that plan

arunadaybasu · April 22, 2023, 7:33am

I have answered most of your questions in the previous comment, but there are a few more questions I wanted to address.

I have mentioned at the end of my proposal that I do not wish to be the only one working on repegging USTC.

This is not a propsoal that intends to replace the other proposals by Duncan and RedlineDrifter.

If they wish to pursue their proposed ideas then they are free to do that, and also work on DK’s original arbitrage function that you have pointed out.

It is not something that I can or wish to take up since it is too risky and I would rather go for a DAI type of model in which one crypto is replaced for the other when it’s falling. That’s it, and that’s all we need. At least I will not attempt any complicated algorithms to support the peg cause, as explained in the previous comment, it is not required to do so.

BTC and ETH together are sufficient to hold the peg and even make profits.

As addressed above, this would be a much better idea for the L1 Team along with a Quant to take up as a part of their work. This is not something I would wish to attempt to recover since I do not see the reason to do so.

The introduction of $INRT into the Terra Luna ecosystem replaces LUNC from the equation (for this specific plan).

When LUNC and USTC depegged, they did so together, so there is no way for me to address both of the issues together. We will need to do it one by one.

This part of the recovery plan deals with USTC only, and if this works successfully, then I will implement a similar design for the recovery of LUNC also.

AFTER both have recovered to a certain degree, should we take up the original design of Terra-Luna otherwise it might be extremely difficult to defend the peg.

P.S. If this plan is launched, I assure you that the FOMO it will create will be enough to bring back LUNC to the game.

LetsGrowDev · April 22, 2023, 9:12am

no it wont.

lunc bep-20 6.9 trillion was created on may 28th 2022, the security risks that lunc carry will destroy any securities.

LUNC is going no where.

arunadaybasu · April 22, 2023, 10:17am

I said that I would explain why this point is important.

Our objective is to peg this to a RUPEE, NOT to a dollar.

In our side of the world, our currency is the strongest currency in Asia currently. Not just that, the Rupee isn’t just India’s currency.

I actually saw that the very last coin in the Community Pool is INT. So DK had also thought about tapping into the potential that this market has.

Cause the combined population of the 6 countries which use Rupee as the common currency is larger than China, making it the largest population on this planet.

You will be able to see yourself what is the projection for Digital Payments in India alone for 2023:

You can read what they said about launching CBDCs in India:

This is India. You just give people a product to buy. They will finish your stock in less than 24 hours before you need to produce more. This is how many people live in my country.

This is the perfect time, and this is the perfect currency to implement our idea on

If we are in time for the market, then we will come out of this with so much money that it should allow us to live the rest of our lives properly.

Tonu_Magi · April 22, 2023, 10:54am

All the fiat tokens there were stable coins at a point in time.
And if Redlines prop comes to fruition then $INT will be dynamically pegged to Indian rupee again.

arunadaybasu · April 22, 2023, 2:14pm

Yes, I have commented on his post. I can somehow see what he is trying to do, but if he approaches CEXs with those fees, well, I don’t know what are they gonna say.

His plan also depends upon the CEXs approving his demands, which is extremely difficult. I don’t know in which way that is possible.

There is no proper system in which that can be done. His plan can’t be done via governance. CEXs can refuse his demands and that’s the end. He can’t go and approach them again for the same thing.

Though this plan is completely different from his, the advantage it has over that plan is that we are starting with approximately 64% leeway to practically do what we want.

I mean, if we want, we can keep the peg 25% above 1 Rupee and any market imbalance will be absorbed in this 25% and still keep it above peg, forever.

You are only limited by your imagination about what you can do with 64% margin.

P.S. Tbh I don’t know what does he need exactly from the community. I mean, he does not need a team, money or even a prop to be passed. So I am not sure how exactly is he going about doing what he is doing. I haven’t been able to identify any proper process as of yet.

Tonu_Magi · April 22, 2023, 2:19pm

Main problem being that folks arent after a stable Indian rupee.
It certainly can be used and so on, but it lacks overall demand.

arunadaybasu · April 22, 2023, 2:46pm

Surely. But the point is not having a stable dollar in this plan. The point is to increase the current value of $USTC.

It is currently at 98% below value. If it is made the ONLY way to purchase a stablecoin, no matter which stablecoin that is and irrespective of which country it is issued for, the value will not change so if you buy $1 USD worth of $INRT, it will still remain $1 USD if you understand what I mean.

Since we are not a company and this is a decentralised stablecoin, we do not need to worry about pegging it to any currency.

The reason that the Rupee was chosen is because it’s 64% above the current value of $USTC.

It is much easier to peg something with +64% margin than say -98% margin.

arunadaybasu · April 22, 2023, 5:42pm

I am posting my reply to Rajia Bibi’s question on Twitter here to explain my point further.

RugDetector · April 22, 2023, 7:58pm

Looking good, you got my support. I appreciate the amount of work you put in writing this up.
I vote yes.

Vendrugo · April 22, 2023, 10:09pm

Why not EURT

arunadaybasu · April 23, 2023, 7:28am

Yes I shall explain that. This is also something that I have left out in the plan for sake of simplicity otherwise reading the entire thing would have been too complicated (but I will include it after this).
.
.
.
So, the idea behind pegging $INRT to the Rupee is quite simple - I chose the lowest and most stable denomination possible.

China just went through the financial cra(sh of the decade in which they were trading in USD only - their currency had cra(shed so much. I buy all supplies from China for my work (mining equipment) so I have been paying them only in USDT. The Yuan isn’t of value in China also.

This was their condition just 1 year back:
https://www.bloomberg.com/news/articles/2023-01-10/china-deflation-pressure-worsens-as-economy-slumps-survey-shows#xj4y7vzkg

So, Don is absolutely correct when he says the only currency in the world to which every other currency is pegged to, is the US Dollar. There is a reason for this and this is something Americans should be proud of.

Not only did they create the banking system, they have also maintained the position of being the largest free market in the world which has protected trading rights of not only it’s own citizens but also other citizens of other countries. That’s why we accept the USD as currency in which the entire planet trades in.

“Money” was literally printed by the US for the first time in modern human history in lieu of the gold which is held in Fort Knox. Which is why Fort Knox is the most protected location in all of US. It’s technically the world’s money that is kept there in bullion gold.
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But getting right into the question of HOW we can issue a stable USD coin which could help LUNC actually get back up on its feet again:

That is quite simple actually and the process begins by issuing a stablecoin like $INRT.

Once you have 1 USD worth of $INRT with you, you can exchange that for 1 USD worth of Wrapped USTC.

Wrapped USTC can be issued very easily cause we already have a stablecoin.

$1 USD = ₹ 82 INR
and
₹ 1 INR = 1 $INRT

So, we can issue a coin called Wrapped USTC in which,

1 Wrapped USTC = $ 1 USD = ₹ 82 INR = 82 $INRT

This is handled in the backend completely so all the user does is that he/she goes to an exchange and exchanges $INRT for Wrapped USTC which is pegged to a dollar.

Using this theory, we can also issue stable coins for any other country in the world, like Wrapped Yuan, Wrapped Peso, Wrapped Dinar and so on. You are only limited by your imagination.

If there are questions regarding this, please feel free to ask.

Rex_x · April 24, 2023, 3:45am

Pegged to the rupee? Isn’t volatility high for the rupee? I see this as very high risk for ustc. I rather give redline’s prop a chance first. No for now. Thanks.

arunadaybasu · April 24, 2023, 4:50am

We are literally handling a coin whose creator/owner is wanted by Interpol and has been caught in Montenegro.

Are you sure you are in the right forum and the right industry?

I’d suggest you reconsider staying in LUNC if risk isn’t your daily fix.

I don’t think you realise that for the last 3 months we were paying a known felon as a senior developer and right now, we have already included code in the codebase to freeze accounts of TerraPort ha(ck(ers.

I am not so sure whether you are updated

Anyway, if you’re in the US I’d wish you luck cause things ain’t looking so good for them.

And others don’t care.

Rex_x · April 24, 2023, 6:00am

I am aware of what is going on. I listened to LBA’s explanations on Superman and others. Yes, DK was arrested and lunc is controversial but that does not mean we should repeg USTC to a currency that is even riskier than the Euro or the Yen and that can potentially destroy USTC if it fails. The Rupee is not something that I can vote for as a peg. I am a solid “NO” on your prop. Thanks.

Tonu_Magi · April 24, 2023, 6:04am

This doesn’t actually answer the fact that rupee is or isn’t highly volatile.
Mentioning our history is just evasion tactics

arunadaybasu · April 24, 2023, 6:04am

The Rupee isn’t exactly what we are pegging it to.

We are actually pegging it to BTC+ETH.

We are not gonna be holding any fiat.

Yes, the value of 1 INRT will be pegged to 1 INR, cause the name of the coin is literally INR-Terra.

When we make USD-Terra, then we can peg it to a dollar.

Also, the dollar pegging problem is already solved here:

@Tonu_Magi we are not pegging it to a Rupee technically speaking. The reserves are held in BTC+ETH and we are pegging it to the value of the Rupee. We can do that with any currency.

And the plan is actually to repeg all of the depegged stablecoins in the system. That’s the larger plan, so yes, we will have currencies from all countries available for trading after a few months. Not just INR.