Title: Asymmetrical Peg
Current Rebalancing Threshold: 10%
Proposed Rebalancing Threshold: Below 2%, Above 5%
As discussed here:
Please discuss and make suggestions. Lets get this right.
While we look at rate limited Buy/sell rebalancing and basing it on LTV, I wanted to swing back here to the asymmetrical peg.
On discord @benny_options mentioned an upper threshold of 1.177 ~ which seems really high, but also limits a great amount of risk from our users.
On the other side, we were previously at 97.5 (2.5%). So going to 2% doesn’t seem too drastic. Especially if we are looking at both rate limiting and LTV for “sell” rebalancing.
My big concern is for a stable coin, bnUSD is all over the place. And not just recently. The 2.5% threshold is still pretty large.