Here's some perspective.
Last year, $LUNA crashed from $20+ to below $5. The $UST peg even briefly fell below $0.90
And $LUNA went on to rally to nearly $100 before the end of the year. It isn't over, ATH this year is still on the table if the economic environment permits
๐งต
Last year, $LUNA crashed from $20+ to below $5. The $UST peg even briefly fell below $0.90
And $LUNA went on to rally to nearly $100 before the end of the year. It isn't over, ATH this year is still on the table if the economic environment permits
๐งต
1/ The crypto flash crash last year caused cascading liquidations on #anchorprotocol. And the parameter cap for minting/burning $LUNA for $UST was insufficient which resulted in prolonged de-pegging that exacerbated fears. These issues have since largely been resolved.
2/ @terra_money ecosystem is far more robust and better equipped to handle crises today. In addition to @LFG_org, we also have protocols like @TeamKujira providing a backstop to oversized liquidation premiums and @WhiteWhaleTerra on standby to protect the onchain peg.
3/ Despite this, we have recently seen $UST de-peg on centralized exchanges. This likely has surprised many people.
3/ The truth is that the success of #Terra and $UST has brought a plethora of folks into the ecosystem. Many of them don't fully understand the mechanism of how $UST minting and burning work. Or algo stablecoins in general for that matter.
5/ And when you don't understand what you're invested in, you are susceptible to FUD.
Fortunately, every time $UST survives a crisis and $LUNA bounces back, it will only build confidence for the masses. They will come back just as quickly as they left.
Fortunately, every time $UST survives a crisis and $LUNA bounces back, it will only build confidence for the masses. They will come back just as quickly as they left.
6/ It isn't the first crisis we've been in and it isn't going to be the last. If you are a #LUNAtic and have been around for more than a year, you already know this.
7/This is the time to put our heads down and continue to build the ecosystem and educate others. We'll be back stronger. I am not selling.
Good thread: (Everyone should read)
Good thread: (Everyone should read)
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