• General
  • Request for comment: Add LUNA to the Treasury

After seeing @Szmefo post on introducing UST to the RFV, I was wondering if it might be a good idea to add LUNA to the treasury.

To mint $1 UST, $1 worth of LUNA must be burned. Therefore, the increase of UST market cap leads to an increase of LUNA's price.

Motivation

If you have been following crypto-related news, the (centralized) stablecoin crackdown is coming, which could drive up demand for decentralized stablecoins like DAI & UST. This could drive up demand for UST, which then would increase LUNA's price. Besides that, when the bear market comes, I personally suspect people to move their capital into protocols that give APY on stablecoins (especially institutions). Right now, Anchor protocol is giving the most stable yield in the DeFi ecosystem (19.5% on UST). This could drive up demand for UST, and again, push up the price of LUNA.

Proposal

  • Add a new bond type: LUNA bonds
  • Target 1% of RFV in LUNA (around $1.7mln)
  • LUNA would have a risk free value of 0

I would love to hear everyone's thoughts on this 🙂

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Informal Poll

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