hey guys… just to know if an similar idea was already explored, but if Luna gets burned with UST demand, and anchor 20% drives UST demand up… What if instead of holding ust on the yield reserve, swap everything to luna with part of it staked. And instead of buying back anc for buy pressure, buy luna with protocol fees (form a luna treasury), and give ANC holders the option to burn ANC to get luna after sometime staked. (penalizes dumping and gives incentives for long term hold) Couldn’t we get to a point where it gets the yield under control with just the appreciation of Luna on yield reserve and treasury? So anc will get its price going up by ust demand, and yield also appreciates? (could some gigabrain simulate this?)
I didnt do the math, maybe you would need too much luna. But if there is an equilibrium, or at least mitigates to a point where 15% yield is equilibrium maybe it could work? Alternative to decouple aUST with anc holding… toughts?
Luna is a volatile asset, it’s unpredictable what could happen to the yield reserve with your suggestion, if Luna doubles in price it’s great, if it goes 50% down it’s terrible, if you stake you lose the ability to top up yields from it and rely on the staking returns so you’d have only 7% of the staked value per year. Also by staking you’re contributing to yields going down, so Anchor would be competing with it’s own collateral.
This is not a solution, it’s gambling.
3 Likes