Hey @DefiCruncher and @Archkiwi, thank you for your pertinent takes!
The feedback loop @DefiCruncher describes is likely to play out, except we will make sure it plays out in reverse, with liquidity eventually migrating from bLuna to stLuna. Btw, allowing this migration of liquidity to benefit the protocols which rely on bLuna was one of the guiding principles for the virtual pool’s implementation.
As @Archkiwi mentioned, the metastable pool, the deprecation of bLuna in Anchor (and thus, Nexus too?) and the concentration of incentives on the stLuna-Luna pool will help steer liquidity towards stLuna.
Moreover, pending the bLuna-Luna pool’s upgrade, bLuna LPs are forced to forgo their staking yield, where stLuna LPs are not. All else being equal, this makes stLuna 7% more profitable than bLuna to LPs. Even after the upgrade, manually claiming rewards from Anchor’s UI will make harvesting and auto-compounding more tedious than it currently is with stLuna.
TL;DR Don’t worry, stLuna-Luna liquidity isn’t going away anytime soon 