I was wondering if attaching USDN to an index price would help neutrino more. In other words, maybe it’s in our best interest is to remove 1 USDN always equals 1 USD.
Instead When BR is under 100:
if USDN_INDEX is greater than 1:
USDN = 1
Else:
USDN = USDN_INDEX + ((1 - USDN_INDEX) / 2) + .015
The current price model only rewards the user. As he captures all profits from depegs.
The new model would share revenue between user and system and increase BR% each transaction.
In the new model, a large depegs would only improve our situation versus just stalling our situation.
Also maybe Partner with Swop.fi to create an auto arbritrage button. The user will receive profits from a single click. that’s easy work, and they help the system at the same time.
imho splitting profits from depegs would only increase these depegs by a factor of whatever user sees as fair profits for making an effort and helping out. right now user has to pay 0.5% to the protocol, pay slippage so in the end he earns whatever he is left with I would say around 1-1.25% for the 2% of nominal depeg. Also there is a problem with allowing price oracles (i presume USDN_INDEX value comes from the oracles correct me if I’m wrong) which would change peg keeping mechanism from SC based (with many protection’s we’ve already established) to purely capital driven market based. I dont think we have the money required to defend USDN price on open markets… even luna lost this battle and in effect was destroyed. current SC model is pretty safe and with new updates should be quite resilient
Thanks for responding to my idea. I appreciate the honest feedback. you said,
imho splitting profits from depegs would only increase these depegs by a factor of whatever user sees as fair profits for making an effort and helping out. right now user has to pay 0.5% to the protocol, pay slippage so in the end he earns whatever he is left with I would say around 1-1.25% for the 2% of nominal depeg.
I agree with this statement. which is why i included the .015 to ensure there is profit as soon as the price falls below 1 usd. I created a table to demonstrate the contract price and how it affects a $1000 swap at difference prices.
| Current Model |
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| $1000 USD > USDN |
Index Price |
Contract Price |
User Earnings |
Neutrino Saves |
| 1010.101 |
0.990 |
$1.000 |
1010.101 |
0.000 |
| 1020.408 |
0.980 |
$1.000 |
1020.408 |
0.000 |
| 1030.928 |
0.970 |
$1.000 |
1030.928 |
0.000 |
| 1041.667 |
0.960 |
$1.000 |
1041.667 |
0.000 |
| 1052.632 |
0.950 |
$1.000 |
1052.632 |
0.000 |
| 1111.111 |
0.900 |
$1.000 |
1111.111 |
0.000 |
| 1250.000 |
0.800 |
$1.000 |
1250.000 |
0.000 |
| 1428.571 |
0.700 |
$1.000 |
1428.571 |
0.000 |
| 1666.667 |
0.600 |
$1.000 |
1666.667 |
0.000 |
| 2000.000 |
0.500 |
$1.000 |
2000.000 |
0.000 |
| 2500.000 |
0.400 |
$1.000 |
2500.000 |
0.000 |
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| Index Model |
|
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| $1000 USD > USDN |
Index Price |
Contract Price |
User Earnings |
Neutrino Saves |
| 1010.101 |
0.990 |
$1.000 |
1010.101 |
0.000 |
| 1020.408 |
0.980 |
$1.000 |
1020.408 |
0.000 |
| 1030.928 |
0.970 |
$1.000 |
1030.928 |
0.000 |
| 1041.667 |
0.960 |
$0.995 |
1036.458 |
5.208 |
| 1052.632 |
0.950 |
$0.990 |
1042.105 |
10.526 |
| 1111.111 |
0.900 |
$0.965 |
1072.222 |
38.889 |
| 1250.000 |
0.800 |
$0.915 |
1143.750 |
106.250 |
| 1428.571 |
0.700 |
$0.865 |
1235.714 |
192.857 |
| 1666.667 |
0.600 |
$0.815 |
1358.333 |
308.333 |
| 2000.000 |
0.500 |
$0.765 |
1530.000 |
470.000 |
| 2500.000 |
0.400 |
$0.715 |
1787.500 |
712.500 |
As you can see, users maintain good earnings. and Neutrino Saves a few dollars.
you also said,
Also there is a problem with allowing price oracles (i presume USDN_INDEX value comes from the oracles correct me if I’m wrong) which would change peg keeping mechanism from SC based (with many protection’s we’ve already established) to purely capital driven market based. I dont think we have the money required to defend USDN price on open markets… even luna lost this battle and in effect was destroyed. current SC model is pretty safe and with new updates should be quite resilient.
You are correct USDN_INDEX would use an oracle. but I hope the chart shows that it’s essentially the same exact system. Unless i’m just over looking something. n im not sure how it works under 10% br. I mean, can they sell that much surf?