Proposed by community member @skrew, a portion of the platform fees should go into a treasury fund. This fund will only consist of mAssets (and not MTA) and will be used as the first liquidation in case of a stablecoin coming off peg.
Initially it won’t hedge much risk for stakers, but over time, it can grow and take a substantial amount of risk away from stakers as opposed to selling MTA which will also face price pressure downwards.
Assume that a basket coin consisting of 20% fails completely, now we know for a fact that every musd is at worst worth .80c, and every mBTC is worth market value. Instead of selling off a large portion of MTA to the market, first, you redeem the BTC, then you redeem the 80% collateral from mUSD and attempt to fix the peg, then you sell MTA.
- Having a treasury consisting of non-MTA gives mUSD holders additional security