If UST project was really decentralized, LFG would be a DAO where a smart contract would trigger the need of actions to sell the LFG assets to keep the UST peg
That's a magical fairytale land where we can create a decentralized smart contract that's going to buy and sell assets across dozens of exchanges (centralized and decentralized). That tech doesn't exist. It never has existed, it very well may never exist.
Instead, to start to print an infinite Luna's if they used the LFG assets correctly
So just going to rehash the same argument to answer the second question as well?
LUNA was doomed as soon as they allowed the debt ratio to go above 50% with zero cap to the upside.
There was no saving it.
LUNA leveraged USDT to get an x100 gain, and this is what they get.
Do Kwon basically tricked venture capital into parking their money on UST to get the 20% interest rate.
This trickery pumped the price of LUNA.
UST holders thought their money was safe.
The solution was to not trick billions of dollars to buy and hold UST.
A cap on the debt ratio would have prevented this entire thing from happening.
The peg on UST should be been broken as soon as the debt ratio was over 100%.
Then Luna wouldn't have crashed to zero and the debt could actually be repaid.
RE: UST: Incompetence, Greed, or Both?