Increase BR to 62.5%

[In reply to Yuri | Waves.Exchange]
I have an proposal. Force half of the 420 million locked USDN to buy surf. Change the Surf SC, USDN-> WAVES, 210 million waves to reserve in ht collateral of USDN. So the collateral could be 300 million WAVES now. And 690 million USDN minus 210 million USDN is 480 million USDN. The BR should be 62.5%. 300 million WAVES in collateral could be enough for arb to avoide depeg. After 1 years, Sasha could promise to pay back the 210 million USDN. if the surf could be 115%, then it will be huge profit. If the surf could not be 115%, Sasha could payback 210 million slowly. My proposal could make 1 years duration for vires recovery. And the BR is over 50% at once. Everybody would be benefit from this.

Buying surf is two methods. 1. USDN → WAVES, then waves will be locked as collateral. 2., USDN burned to Surf. We need more WAVES locked in the collateral. We could make more code in the SC to change USDN to waves to lock in the collateral. USDN-> WAVES, WAVES locked. ppl get surf

Your computations are wrong, because waves in the smart contract don’t change. The amount of WAVES you add to SC via WAVES->SURF swap were first removed from SC via the USDN->WAVES swap…

So, by burning 210M USDN in this way, you reduce the total USDN by less than one third. But WAVES in SC don’t change. So we will go from a BR of 11% to 17%, not 62,5%.

I am ok with the idea of burning excess of USDN from vires, I have been proposing it since last week. See Limit USDN->WAVES burning when BR < 1 (alternative 2).

But the computations you are doing are wrong. And we have to burn much more than you say in order to increase BR significantly. And because no net change of WAVES is involved, you don’t need at all the USDN->WAVES wap and the WAVES->SURF swap. You achieve the same directly with the USDN-<SURF swap.