The expectation of the change to Unitus was that buy pressure would be increased for DF due to (1) deflation of DF and (2) demand for DF in order to form the BLP needed for boost.
However in reality this is not happening. Despite the very nice boost mechanism it is possible to get a good ‘boosted’ APR without supplying any BLP. Whales are taking advantage of this and are supplying and borrowing millions with no (or very little) BLP. They are then dumping UTS for DF and then dumping the DF. The funds in BLP across the chains is very low. DF price and TVL has dropped since Unitus was started.
I propose this be changed so that UTS is only received as rewards if the user has BLP. The BLP amount needed needs to be commensurate with the total they supplied and borrowed in order to receive boost. Until this happens UTS will continue to dump. DF will just be used as exit liquidity and UTS and DF price will both trend down.
It would be a simple change to stop this bleed. I hope that is taken.