Yeah I agree, selling $lina is a net negative in my eyes.
Been thinking about how the DAO could potentially stake Lina and build lUSD and use that to fund a LP. We would need to ensure the staked DAO Lina p-ratio is something extremely conservative, like 1500 or higher, because I don’t think it would be practical to manage on a daily basis.
Thank you @Captain_Trips_Linear for joining the discussion about that topic. Can you further explain how the staking of the DAOs treasury would affect the peg of ℓUSD positively. In my opinion this would have a negative impact, because of increased ℓUSD supply, even if we keep the pledge ratio above a huge value like 1500.
There are three ways I see here:
- Better utilzation of ℓUSD → attract more people to use it despite linear stakers.
- Increasing the Pledge Ratio Target → lower the supply of external ℓUSD by artificially lowering the overall dept pool
- Artificially lower the dept pool by buying ℓUSD and putting it on the sideline, waiting for increased demand.
I think the team is trying hard to achieve the first. In my opinion we as DAO can utilize the second and third option but in a careful manner because otherwise it could have negative outcome like you said.
what i’m exploring is staking LINA, building LUSD to a conservative p-ratio and using that LUSD to create a BUSD/LUSD LP. this should help with the peg, because the larger the LP the smaller impact from trades
Okay, honestly I don’t know or understand the effect of the LP-Tokens in this context. Have to do some homework on it. Probably you are right. I think it would be a good idea to collect possible solutions to address the ℓUSD peg problem in another discussion in the general category. Hopefully resulting in some ℓPIPs later.
What do you think?
Good idea, new topic now created in ‘General’, cheers
Where are we with putting this claiming option out for a vote?