Proposal Title: Restoring USTC Peg and Ensuring Stability
Proposal Objective:
This proposal aims to outline comprehensive steps to restore the peg of #USTC (TerraUSD) stablecoin within the Terra ecosystem and ensure its stability. The combination of the strategies mentioned below is intended to bring USTC back to its peg value.
Proposal Details:
1. Providing Liquidity and Arbitrage Opportunities:
- More liquidity should be provided within the Terra ecosystem, and opportunities for arbitrage should be increased.
- The protocol should offer liquidity incentives and rewards, encouraging liquidity providers and arbitrageurs.
- Consider implementing Liquidity Mining programs and incentives.
2. Establishing a Stabilization Fund:
- Create a dedicated stabilization fund for the Terra ecosystem.
- The fund will be used to balance price fluctuations caused by supply-demand imbalances and ensure peg stability.
- The source and management of the fund should involve the participation of the project community, protocol governance, and token holders.
3. Protocol Adjustments:
- Make necessary adjustments to the Terra protocol.
- Supply control: USTC supply should be automatically adjusted, increasing when demand rises and decreasing when demand declines.
- Demand forecasting: Develop demand prediction models using data analytics and smart contracts to guide supply adjustments.
4. Community and User Communication:
- Engage with the community and users regarding the proposal and plans.
- Establish an open communication channel to gather feedback from the community and encourage user contributions.
- Conduct community meetings, #AMA (Ask Me Anything) sessions, surveys, and other activities to increase participation.
Benefits:
- Restore the peg of USTC stablecoin and ensure its stability.
- Enhance trust and stability within the Terra ecosystem, increasing user confidence.
- Balance price fluctuations through increased liquidity and arbitrage opportunities.
Feasibility:
- Share the proposal with the #Terra ecosystem community and project governance for feedback and support.
- Detail the implementation steps and conduct technical analysis and simulations as necessary.
- Initiate an official voting process for the proposal, designed to seek community participation and approval from token holders.
- Maintain regular communication and updates throughout the implementation process.
This proposal presents a comprehensive plan to restore the peg of USTC and ensure its stability. The details of the proposal should be evaluated and refined by the community and project governance. Emphasize the importance of taking the necessary steps for feasibility and community involvement.
