In the current model, $LUA isn’t central to any value building strategy. As it’s stands, there are no reasons for traders to consisently buy $LUA except for speculation purposes.
Furthermore, most of the buying power behind $LUA is coming from the protocol. I believe this power should be given to traders. A single trader alone can outweigh the buying power from the protocol if $LUA is the backbone of their wealth building mechanism.
For now $LUA isn’t the backbone but the exit token. Liquidity providers farm $LUA to sell it to cover for impermanent loss. Stakers stake $LUA to sell it. Liquidity providers will not provide more liquidity for the sole purpose of farming $LUA since the value of $LUA and APY are declining.
I propose that $LUA becomes a utility token for traders, making $LUA a token that is necessary to earn and to buy if one wants to build their wealth. We can resume my proposition in just a small sentence: pay the staking rewards in the token being swapped, in $BTC, $ETH or any other denomination involved in the transaction.