As of the time of this post, 472K WAVES and 1.9M USDN have been converted into SURF.
The current BR is 11.15% with 686M USDN circulating and 15.22M WAVES ($5.02) as collateral.
The goal is to achieve BR 100%, not to burn USDN. You all are trying to force $686M worth of USDN into $76.5M worth of WAVES (impossibly), instead of expanding the value of WAVES collateral to cover the value of USDN.
Imagine that the 1.9M USDN that have been redeemed were all converted into WAVES at an average price of $5.40 before being swapped for SURF. There would be 1.9M more USDN in circulation, but there would also be 351851 more WAVES as collateral. The math is straightforward for calculating the BR if that were the case:
15.57M WAVES ($5.02) = $78.16M
78.16 / 687.9 = 11.36% BR
So, despite limited use of SURF swapping so far, the BR could have been higher right now. At such a critical time, everything they can help the BR should be considered.
I propose that users are still allowed to swap either USDN or WAVES into SURF, but if they swap USDN, then the trade is routed through Swop.fi to first swap USDN into WAVES. Then those WAVES are exchanged for SURF.
Do not listen to any gibberish nonsense about needing to burn “excess USDN.” This proposal is a small but necessary measure to help restore the BR by replenishing the WAVES collateral.
Edit: This proposal assumed USDN would be close to peg. In a depegged scenario then it doesn’t work as well.