Thank you for posting this thoughtful summary - very useful! It’s also great to see that you mention the legal challenges around tokenizing RWAs, looking forward to learning more about your approach with Untangled.
Regarding the liquidity-impact tradeoff, I spent some time thinking whether a tiered liquidity setup would help. On a high level, it could work something like this:
- We (logically) split the reserve into a core reserve and an impact reserve
- The core reserve holds highly liquid assets (e.g. the current crypto assets) and has sufficient collateral to cover all outstanding cStables.
- Let’s define two collateralization thresholds for the core reserve x and X with x < X, let’s say x = 1.5C and X = 2C where C = USD value of stables in circulation, i.e. we aim for 150%-200% overcollateralization with the core reserve (numbers are just examples, TBD)
- If the core reserve value R exceeds X, the difference R-X is ‘transferred’ to the impact reserve and invested e.g. in real world assets
- As long as x < R < X, the impact reserve is not touched
- if R falls below x (trigger event), impact reserve assets are liquidated to boost the core reserve
Would love to hear your thoughts on this