Improving MIR capital efficiency and usability

Wanted to get people’s ideas on the following: Instead of using Collateralized Debt Positions to mint mASSETS (capital inefficient) and relying on arbers to maintain a soft peg (paying too much to incentivize and turning MIR into a farm and dump token), why not use a mechanism where mASSETS are pegged to oracle prices through a mechanism similar to maintaining UST peg to $1 by burning and redeeming Luna? This way capital becomes more efficient and pegs are more reliable.

In practice, you burn and redeem MIR to maintain the price of mASSETs to the oracle price

…and for all the moonboys and moongirls in the chat, MIR numba go up

Have you thought through how that would work? Let’s say an mAsset is at $40 and real asset is at $40. Now the real asset goes to $80. What makes the mAsset go to $80?

My understanding of your model is that you would swap the (cheap) mAsset for MIR to make the price move. This would then print MIR which would be dumped. So MIR would dump every time mAssets go up in price (which, since they’re stocks and not stablecoins). They’re designed to do.

The LUNA/UST model only works for a stablecoin peg.

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Yep you’re right. Looking into the scenarios applied, it seems to work when using UST to mint and burn. if mASSET is 40 and real is 80, then you buy mASSET for UST on market, redeem it for 80 UST. if mASSET is 80 and real is 40, you mint mASSET for 40 and sell it on market for 80. How do you feel about this?