Do Kwon & Terra vs The SEC CLOSING ARGUMENTS
The SEC and Terra’s defense team just spent the last few hours recalling their cases for the jury
The jury is soon to begin deliberating and could deliver a verdict this afternoon.
Here was each side 🧵
Do Kwon & Terra vs The SEC Day 8 Recap
Today was a shortened day for a couple reasons:
Judge Rakoff had other appointments and Terra released one of their witnesses
Today we heard from two witnesses refuting the implications of Jump’s trading in regards to UST’s peg
Here's what I would do to repeg $USTC
- the chain must hold reserves of foreign currency, especially foreign stablecoins
- convert all existing $USTC into a dynamic yield bond with conservative maturity, thinking 25 or even 30 years.
- issue new a new stablecoin to replace $USTC whose value is collateralized by a new protocol-owned pool of assets
- original algo for $LUNC <> $USTC swap must be abandoned and more experimental need to be considered
- $LUNC should be an essential token in the stability of this new stablecoin
Here's my crazy idea for a new decentralized algorithmic stablecoin - Mesh Stability
I believe that it is hard to design apriori a robust system that's resistant to crypto levels of volatility. A future-proof design needs to absorb shocks and redistribute this chaotic energy as beneficial to the system.
I propose a lattice-like hypergraph of dynamic stablecoin mechanisms that explore different tradeoffs between capital efficiency, stability, and decentralization.
Imagine a shared pool of liquidity and multiple stablecoin implementations that can transfer liquidity between each other depending on market conditions, allowing for darwinistic selective forces to prune out unnecessary or unfit solutions. New stablecoins can be added and old stablecoins can die without affecting the global liquidity reserve, allowing underlying assets to be protected. A stableswap mechanism can be used to mint new tokens of competing stablecoin implementations, with token holders being able to access liquidity, and IL can be used to generate higher non-inflationary yield since it benefits from high volatility. $LUNC will be the magic token that powers this system and funds new token launches.
I believe we need to explore organically-evolving solutions that increase in complexity rather than fragile simplistic models. The solution described above enables an ecosystem of exploratory approaches which can evolve quickly and can transfer information gained from failed/rekt stablecoins within it's ecosystem to the success of the ensemble.