The USK-peg

The $USK-peg.

Thesis

$USK's price is rising, and, instead of returning to peg, there is increased up-pressure on its price.

Antithesis

I see three major issues with the $USK-peg.

1. Minters of $USK are doubly-punished:

a. it's a loan: they are charged interest for assisting the ecosystem.

b. it's a loan: they can be liquidated.

Why mint $USK?

Until @TeamKujira rewards minters, minting $USK has no appeal for me or other INVESTORS!

Investors MAKE money.

2. There is a cap to the $USK-supply of 1M per collateral asset. 

Okay, sure, the cap isn't reached, and it's not even 50%, but this means that the markets are (very?) limited in what you can do with USK, creating more (and more) buy-pressure on this token.

3. The $DOT-problem.

I have never seen a deader order book than DOT / USK.

• $ATOM has 4 boards: ATOM/KUJI, ATOM/axlUSDC, ATOM/USK, ATOM/OSMO
• $KUJI has 3 boards: KUJI/ATOM, KUJI/axlUSDC, KUJI/USK

$DOT has 1 board.

Until $DOT is integrated into the ecosystem, it's doing nothing.

The $DOT problem creates 2 problems: one now, and one later.

The problem it creates now is: how do I get $DOT to mint $USK? I don't. 

$USK available supply decreases and price continues to rise.

@TeamKujira, somebody, ANYBODY, HAS to incentivize $DOT usage in this ecosystem.

Now.

$DOT creates a later problem: $ETH.

Okay, so I HAVE seen an order book as ded as $DOT's: it's $ETH.

And $ETH is supposed to be collateral to mint $USK? And, if it's like $DOT (and it IS like $DOT in this ecosystem) that means it will have ZERO impact on $USK-price.

G-d.

Have you read the Bitcoin Manifesto? 

Do you know what $BTC was supposed to be? It was supposed to be e-money (to buy e-pizza, but that's another story). Now it's $17k+. Why?

People are HODL'n it.

$USK is supposed to be e-currency. That's all it's supposed to be.

But people are now starting to HODL'n it.

And why not? Its intrinsic value, vis-à-vis $axlUSDC, continues to rise, day after day. Why WOULDN'T I HODL $USK??? I'M MAKIN' MONAY!

You see the problem here? I do.

Synthesis

I'm gonna armchair QB here for a sec:

Solving the $USK peg-problem is easy:

1. incentivize, don't punish, minting $USK. Provide a safe-minting mechanism, too.
2. The cap isn't a problem now but it creates a psychological one now.
3. Please incentivize $DOT. Please.

post scriptus

p.s.: I write this article not because I want @TeamKujira to fail. No, quite the opposite. Pointing out issues, problems, that are hurting an ecosystem is a prophet's job: it's a labor of love.

I'm sure this will be seen as criticism, but I do this out of love.