Our dUSD is falling today 4.1% down 0.958, should we

be watching closely, could we see a same scenario as UST ? Or is that scenario they went through not possible for our dUSD ?

I'm not worried at all for the DUSD. The reason why this happens is because BTC did a small spike upwards, and there are massive sales of people dumping DUSD and wanting to own DFI immediately for that potential long scenario. This should normalize soon. Actually, looks like a great arbitrage opp potentially to me. If you're in USDT/ USDC, trade for DUSD and wait till the discount is lower. If you're in DFI and don't believe in an upwards trend currently, same thing. Go into DUSD and then reverse when the DUSD discount is smaller.

So do we not run out dUSD in the same way as Luna ran there UST ? I thought we where pegged now

Nope, dUSD is like Dai, not UST

There is no correlation between DUSD and UST, in my opinion.

Could you tell me why you think there is no correlation at all ? I think out of all the top stables us and UST are the only 2 stables not pegged at $1 at the moment. Even Dai is at $1.

I think for the specifics of UST, probably best to read up on all the details of Terra Luna as a project. They seem to be in trouble overall, and as such their stable coin, UST, is behaving wildly. Also, I think I remember there were rumors that Tether doesn't have a 1:1 backing for their USDT, probably the largest stablecoin of all. That might have caused slight distortions some months back, too. I think if a project/ chain is overall at risk (as is Terra Luna potentially the way I understood it), then their stable coin will suffer and be in trouble, too. I don't see any trouble on Defichain!

You are right that there is no peg at exactly $1.00 for DUSD. It fluctuates, and always has. Usually only by ~1-2%, currently a bit more due to the reason I mentioned above. However, I read your message as "there is some kind of peg between UST and DUSD stablecoins". And that certainly is NOT the case. These two are completely independent, different and at home on different chains.

No definitely not saying they “pegged between themselves” I was asking how is a scenario of what happened to LUNA/UST not a scenario that could happen with DFI/DUSD

Yepp. Read up on Terra Luna. If I got it right, they were gambling with trading BTC, recently bought up, now had to sell due to the strong dump, etc. Different chain, different project, different scenario. In my opinion. And you are right there is of course no 100% certainty that it will never happen on Defichain. A stablecoin is still a crypto coin and not fiat money.

oh don't be deceived with the right kind of sell off pressure we could likewise have a crash of our dUSD too and it could domino the entire system. This is why we really really need to implement a guardrail now before the crisis happens to bring it back up into a near one dollar point like we do when it goes up over past 1%. Let's simply do the reverse and mint DFI and pay back loans with dUSD plus a percent to allow the people to arbitrage it back to + or - 1% range of $1

this is exactly what got terra into trouble as they minted Luna to bring up the peg. https://youtu.be/BN1kx0sRCO0

I appreciate this video. Makes a lot of sense. I was concerned that minting DFI could be a bad thing also. 🤔 Maybe what we need is a future swap option with dUSD/DFI pool to allow one way swaps of DFI for dUSD at oracle less 2% for emergency situations like a long drop below a dollar, but not the other way around so we don't devalue the DFI coin? We could do that weekly like we do for dTokens in event we stay in a lower than 98% range to help bump it back up slowly if market doesn't recover it by normal trading over a few days. What say you?

I agree that futures could work and even if you had it both ways people would arbitrage dusd prem down before futures could touch it so it wouldn’t devalue DFI

Im lost, lol

indeed that would work! no need to worry about too much or any DFI ever getting minted for that matter if we leave in place the current arbitrage we have now to lower it via vaults.

did you watch that video? I didn't know that UST have Luna minting in place if dropped lower than $1. This apparently is what caused Luna Death Spiral yesterday. If the entire Luna Blockchain is now liquidated there is not enough Luna to pay back all the UST that is backed by Luna and was a little bit backed by BTC, but apparently that got sold off yesterday also to help stabilize UST. But wow how can UST be stable at all now, with not enough backing it. Better to stick with a more volatile coin you can trade and expect to fluctuate.

Luna minting means they simply increase the supply of Luna to back up the USDT?

But DAI doesn’t move from $0.99/$1 and we touched $0.890. Do we know the market cap of our DUSD ?

https://defiscan.live/dex/DUSD