there is an error in the mechanism as written above - when you trade Luna for UST you don’t, it is not 1 LUNA burned for 1 UST minted, the protocol burns Luna and mints UST based on the dollar value via spot prices of Luna. If 1 Luna is worth $100, the trader would get 100 UST.
there is an error in the mechanism as written above - when you trade Luna for UST you don’t, it is not 1 LUNA burned for 1 UST minted, the protocol burns Luna and mints UST based on the dollar value via spot prices of Luna. If 1 Luna is worth $100, the trader would get 100 UST.