Note: I’m not sure why my original post got deleted by the admin.
We can make a new UST fee structure to scale with the percentage of debugging.
For example, if the UST price drops by 3% the network transaction fees will be at 3% and will scale with the de-pegging until the UST price recovers to $1.
This will incentivize traders to transact UST close to its peg and penalize traders to transact UST under its peg.
The network fees can be burned OR taken out of circulation into the treasury wallet to further incentivize Anchor EARN holders.
The on-chain arbitrage conversion transactions can always be free to help restore the peg if the UST market halts.
People can sell their UST using the on-chain AMM for free if their next order is worth $1 during the de-peg to help restore the price of UST if the market halts.
I believe everyone in the community wanted to keep UST at its peg. I also believe everyone in the community had the ability to keep UST at its peg even with that first big sell-off. The only problem is our emotions. Fear and Greed is the only thing that controls prices. UST ONLY incentivizes our greed to keep the peg at $1 but UST also needed to penalize our fear.
This proposal can be tweaked and revised with the community.