The Problem
The biggest problem is the collateral going to zero this problem is actually the failure of volume vs quantity.
In this way the volume isn’t big enough to take the punishment of arbing.
Nsbt needs to be the backbone for the system and it actually the token breaking the system appart.
please explain the problem you would like to resolve
The first problem to resolve is emptying of the collateral pool.
Second is nsbt used as a product to syphon the collateral.
What do you suggest to change?
please explain changes that you suggest
The first problem can be solved with a security pool only the apy is used and the rest of collateral needs to be locked and untouched.
The way this pool needs to be filled is with fees from swap and minting of tokens.
Best would be 10% minting and 10% Burning.
Second
nsbt can be burned for( Total collateral/ total nsbt) and a %20 fee to the security pool.
Minting nsbt is value of collateral/nsbt and minting in a High volume asset like BTC.
Also the security pool would cap waves and all other collateral getting deflation on these Assets.
This is just a basic setup to look in to
The new tokens for collateral can best be put straight in the security pool and stop the syphoning of the collateral.