Hi @Xxiled
Have you considered encouraging a soft peg for $xUSD instead of trying to enforce a hard peg to USD?
If you haven’t heard of them check out Kujira’s $USK. Kujira is a Cosmos DeFi chain. $USK is purposefully soft pegged to encourage Arbitrage. The Arbitrage system is what maintains $USK soft peg stability in relation to USD on either side.
Implementing this system could add to the unique value of $xUSD within Algorand DeFi.
Hey thanks for the tip - I hadn’t heard of that before and will give it a research.
Hope this helps.
Website: https://kujira.network/
Docs: https://docs.kujira.app/
And of course with Arbitrage, its another revenue opportunity and could boost volume.
Appreciate it!
I think in reality we couldn’t call xUSD to have a hard peg to USD - with how it’s backed and with the current liquidity we do see movement. I suppose one main thing is that the plans outlined here aim to get xUSD to $1 and either stay there or go below - they don’t allow much, if any movement above $1.
Perhaps a ± range around $1 would be allow more flexibility and as you say, opportunities for revenue.
Great stuff to think on, thanks again!