How to make H2O more pegged to $1

Currently the price of H2O has been around $0.95 - $0.96 for a month. What can we do to incentivize to bring back the price to $1?

For example, distribute more $MELT to av3crvGauge. But that makes $MELT more inflationary.

How about using protocol revenue and treasury to buy back and burn H2O?

To quickly return to PEG, strong measures must be implemented:

  1. prevent the minting of additional H2O
  2. increase the cost of borrowing H2O from 1% to as much as necessary

There needs to be more to do with H2O. A way to stake it for rewards?

More liquidity pools? Right now if you want to do anything with it you have to sell it for some other stablecoin in the curve pool.

What actually is the existing mechanism to keep it pegged? Is it just the fact that there’s an implied value when minting?

Because if everyone is just minting and selling it off, feels like it’s just downward pressure until someone wants to get the collateral back, which could be forever.

Take a look at my comments following my recent governance proposal. If we support the price of MELT, we support the H2O peg.

I agree with the halt on newly minted H2O, but I am opposed to raising stability fees.
Thinking about defrost as if it were a start up: the product that we have had the highest success so far is the super vault with looping. It is the stickiest form of capital we have attracted and where we are providing the highest value add to users. Anything that makes them feel unsafe about minting new h2o (once we make that feature available again) would be a bad customer experience and discourage them from engaging.
We get value by adding value.