In the end, I just hope it works.
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This is taking money from people that did not sign up for this.
This is exposing them to risk they did not consent to.
This isnât meant to come off as an attack but itâs just factually immoral.
Leave people with their existing loans. If people want to open a new loan and understand what they are getting into then that is their choice.
Secondly, this does not get us any closer to resolving the peg âissueâ.
The only time there are redemptions are during dramatic downturns, in which case we only get close to $1 before people that have been waiting to sell start selling or CDPs that have extra collateral take advantage of the opportunity. If we are in our bull run, people are just going to sit with a higher interest rate or take out more debt pushing the price further downâŚ
Sad thing is that interest $$$ isnât being issued to solve the âproblemâ, its being used to pay off bad governance as we now have a conflict of interest. AKA the people voting are incentivized to vote for their own self gain rather than what is best for growth and adoption of the app, putting us in a death spiral.
Everyone loved this app before interest and redemptions were introduced.
It was literally #1 and was incredibly powerful!
I feel we have strayed away on this imaginary mission of ârestoring the pegâ when iUSD was never designed to be a stablecoin to begin with⌠iUSD is a synthetic dollar, it was clearly designed that way, it was and always has been traded that way. That is why it stabilizes around $0.70-0.90 because the buy and sell sides have equalized in that range with the current natural incentive opportunities.
The problem isnât that thereâs not enough money being taken to implement artificial buying pressure. The problem is that there isnât organic buying pressure. When stability pool rewards dried up, there was no other reason to buy/hold iUSD. We need to create markets for people to buy iUSD and utilize it for something. The basic ideas are betting markets, lotteries, options trading.
Why donât we people a reason to buy rather than taking more money from users.
I think everyone will like that much more.
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