@stewbits22 28 March 2022 more from that month

This is a small section taken from a really interesting talk given by Coinflex on Twitter podcast. The link only lasts a a few days so listen quick if you want to hear it. https://twitter.com/i/spaces/1gqGvlqqXYlxB Here are some of the points raised. FlexUSD is going after the central bank market building a base layer on the blockchain that pays interest. If everyone uses FlexUSD then Coinflex becomes a prime lender and provider of leverage. It also creates a powerful network effect as the corporate market users spread FlexUSD to their employees and retail customers. Of interest to me was a question about Luna. There are various types of stable coins e.g Cash backed, treasury backed or a mixture. Luna is not backed by any endogenous capital just Luna and UST The more UST is minted the more demand there is for Luna We have only seen this feedback loop as Luna and UST has increased their market cap. The more UST minted the more demand for Luna A lot of that Luna is going to the anchor protocol which pays 19%. FlexUSD pays interest rates as there are borrowers on the other end but there is no one in the UST ecosystem paying the 19% just Luna holders. So it is an inflationary model. Luna holders are subsidising the interest rate at above market rates. The question arises will Luna holders continue this subsidy? Tether has seen huge redemption's and also in USDC but a UST supply shock will affect Luna badly. The feedback loop creates more Luna to sell more Luna. Forcing the price down. A circular price and liquidity shock. FlexUSD is backed 100% by external collateral via the repo market on Conflex which is fully audited. Redemptions on FlexUSD creates no issues for the FlexUSD ecosystem.