With more and more integrations coming in for USDx, having whitelisted LP from debasing and YUAN release around the corner, I wanted to discuss YUAN’s initial distribution.
I would like to suggest these options to get a discussion going:
1. Initial YUAN gets sold to the public at market price.
As Robert suggested here, this would mean the initial distribution is 1:1 backed, providing a floor of stability for YUAN marketcap to grow from there.
2. Initial YUAN gets distributed only/mainly to USDx LP providers.
Considering USDx has been in negative rebase for several days in a row and with only 200k USDx in the LP, we could definitely use an incentive to buy USDx and provide liquidity. Rewarding LP providers with YUAN could be an incentive to get us back in positive rebase and increase USDx liquidity.
3. A combination of both.
Eg. 50% YUAN sold to the public, 50% distributed to LP providers.
Personally I would benefit most if YUAN was distributed amongst SHARE holders, but I don’t see how that would help the protocol at the moment.
I also fail to see how distributing YUAN to xBond holders would be beneficial for the protocol. It could lead to more xBonds being minted, locking up more USDx, but I don’t believe this would help in the long run.
Now I am not 100% up to date on all developments and also quite new to the whole DeFi space, I scanned the other Gov. threads and TG groups, but please forgive me if I overlooked or misunderstood something.