Use reserves to solve peg - allow people to swap LUSD for LINA bonds on Linear Exchange

The X-files
1
  • Allow people to swap LUSD with value of 1$ for LINA Bonds on Linear Exchange or Buildr
  • LINA bonds can be swapped for LINA when LUSD is 0,97 to 0,98 and higher in value
  • 1 LINA bond equals 1 LINA in value
  • The reserve will be used for it
  • This will incentivize people to purchase LUSD when below peg
  • above peg, LUSD will be used to purchase LINA and burn it from supply, this will give a tiny deflationary push to the Linear token
  • (optional) if try to swap bonds back to LUSD below peg, a penalty of current price of LUSD will be applied (1 - current price in percentage) plus 15%
3 Likes
2

love the idea nice direction

3

can you provide more detail and examples on how this would work?