Proposal: allow locked deposits assets reconversion

I am particularly interested in allowing reconversion of locked supply from USDT/USDC to USDN. Why:

  1. There is strong incentive to do this: USDN interest rate is currently bigger than USDT and USDC. So this is a win-win.

  2. In current situation, it will allow to help Sasha to reduce USDT/USDC debt directly with his supply, without generating a USDN sell pressure, as the result are locked USDN supplies. There may be an important amount of people that want to do that reconversion. Current locked USDT/USDC totalize almost 190M

  3. In long term, it adds an extra use case of USDN.

  4. Evenmore, a reconversion from USDT/USDC to USDN may also allow reduction of lock term, as an extra incentive. As a native asset, we can handle USDN liquidity issues much easier than with foreign ones. This additional incentive will probably be necessary, because reconversion to USDN will imply a reduction of USDN rates as supply increases and debt is cancelled via this feature (although USDT/USDC rates will also decrease as debt is cancelled)

  5. In addition, we can add the feature to interconvert between USDN/WAVES locked supplies, thus allowing some sort of trading between native assets locked supplies.

  6. Notice that, for correct working of this mechanism, reconvertion of supply from USDT/USDC to USDN implies also to reconvert same amount of debt from USDT/USDC to USDN. This reconvertion likely should prioritize, or even be limited, to those that has this debt collateralized with USDN. In case of limited, reconversion of locked supply will be limited to the amount of USDN that collateralizes USDT/USDC debt.

3 Likes

I’m not smart enough to know if this will be a good idea or not. But I like it either way. I’d vote for something like this.