Jon Wu, head of development at Aztec Community, recaps a traditionally chaotic week within the Terra ecosystem that noticed $UST depeg, Anchor depositors flee, and $LUNA fall 99%. Present highlights:
- how $UST, $LUNA, Luna Basis Guard (LFG), and Anchor Protocol are imagined to work
- why Jon compares the Terra blockchain with VISA, LFG with the Fed, and Do Kwon with Jerome Powell
- how a earlier $UST de-peg foreshadowed this week’s dystopian value motion
- how a bitcoin quick appeared to have kickstarted $UST’s depeg and why Jon thinks it was a deliberate assault
- why Luna Basis Guard initially bought Bitcoin – and the way that plan backfired and made the Terra dying spiral much more violent
- why $UST had such low liquidity this week – making it extra vulnerable to a financial institution run
- what Jon’s predictions are for $UST and $LUNA going ahead
- what have been the explanations behind Terra halting
- why Jon doesn’t suppose this would be the finish of algorithmic stablecoins
- why Jon thinks this could not have an effect on ETH immediately, although there’s a excessive quantity of staked ETH within the Terra ecosystem
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Episode Hyperlinks
Jon Wu
Jon’s Write-Up on the UST Depeg
Earlier Unchained Protection of Terra
- Do Kwon on backing UST with BTC
- Kevin Zhou on the danger of UST’s dying spiral
Terra:
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