We’re back to about a 25% discount for WNXM. I think bigger investors are coming into DeFi but see that existing investors have not been able to sell their positions for months, and are thus reluctant to invest and push the price up the bonding curve.
They need confidence that such situations are ideally temporary.
Somebody smarter than me should make sure my argument is sound, but:
What is the downside of having the protocol have a standard practice of buying back WNXM when the discount is greater than 10% for some set amount of time like 4 weeks?
(I’m not sure the details of how this would work–something like use ETH to buy a set amount of WNXM on the open market, convert to NXM, and burn it? Wouldn’t that result in each existing NXM being worth more?)
I think it would restore confidence in the project and allow bigger fish to see NXM as an investment.
Everything else is going great. We should be above 130% MCR at a time like this I would think.