I wanted to propose/discuss the option of implementing a function similar to other elastic protocols of adding a negative rebase to the dollar protocol. I think that by adding a negative pro-rata function we may be able to recover.
The current problem is the lack of USD in the USD/SHARE pool for USD burn for discount SHARE to be viable in the current market. Even if the 90k USD in the USD/SHARE pool were burned that still wouldn’t return us to the peg. The real problem is the amount of USD in the USD/ETH pool (and other mining pools) and not enough demand.
By implementing a pro-rata negative rebase on USD we can reduce the supply of USD to a point where supply = demand again. The one factor I’m not certain on is where the threshold to trigger this feature should be. Should it be once discount share hits 50%? Should it be after 1 month of negative rebases? If you think this is a viable strategy let me know your thoughts.