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I know its not the time for new R&D but I'd love to write down ideas here instead of forgetting about them!
I was just reading some articles about when the entire market implodes and how stablecoins react (basically people tend to fixate on the extremes of the spot price.) What if we created a "backup" uAR-uAD Uniswap market which is used to arb the primary uAD-3CRV market back on peg? Its effectively using debts as a backstop collateral for when things go south.
It's an underdeveloped idea but it would be interesting to get people to use debts as a form of pseudo collateral. Using transfer hooks...
Every time a swap on uAR-uAD happens, the protocol mints and tops up the debts in that market to make uAD=$1.00+ etc. This, in practice means that uAR should perpetually increase in supply in this pool.
So ultimately a user can buy on curve, and dump on the debt market for a profit (in debts.) Because we can live change the target, we could do the inverse of the valuation on curve e.g. uAD is $0.98 so we can make the debt market $1.02. This will make the incentives juicer the worse the price gets.
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I know its not the time for new R&D but I'd love to write down ideas here instead of forgetting about them!
I was just reading some articles about when the entire market implodes and how stablecoins react (basically people tend to fixate on the extremes of the spot price.) What if we created a "backup" uAR-uAD Uniswap market which is used to arb the primary uAD-3CRV market back on peg? Its effectively using debts as a backstop collateral for when things go south.
It's an underdeveloped idea but it would be interesting to get people to use debts as a form of pseudo collateral. Using transfer hooks...
Every time a swap on uAR-uAD happens, the protocol mints and tops up the debts in that market to make uAD=$1.00+ etc. This, in practice means that uAR should perpetually increase in supply in this pool.
So ultimately a user can buy on curve, and dump on the debt market for a profit (in debts.) Because we can live change the target, we could do the inverse of the valuation on curve e.g. uAD is $0.98 so we can make the debt market $1.02. This will make the incentives juicer the worse the price gets.
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