.LFG_org’s proposed cryptocurrency reserve could have been a lifeline for $UST, but it came too little too late, says Vetle Lunde, analyst at the Norway-based crypto research firm Arcane Research.
To address those fears, Terraform Labs, the firm that developed the Terra blockchain, coordinated with other investors to create an organization called the Luna Foundation Guard and started to accumulate a reserve that would support UST’s peg in a crisis.
LFG went on a buying spree, filling up the reserve with about $3.5 billion worth of crypto assets and became one of the largest single bitcoin holders on the market – but without a working system in place to deploy the reserve if a crisis happened.: If the UST price fell below 98 cents, traders could swap UST to bitcoin at the price peg, creating demand for UST with an arbitrage incentive.But the crisis happened before the system could be put in place.
Jose Maria Macedo, a council member of the Luna Foundation Guard, told CoinDesk the bitcoin swap mechanism was expected to be shipped by the end of next week by the developer team of Astroport, a token exchange built on the Terra blockchain.Monday that the testnet launch was a few weeks away. There has been a lot of talk about the chokepoints of algorithmic stablecoins lately, with critics saying that they are inherently unstable in a market downturn, and vulnerable for market participants to exploit weak points in the design.
Sean Farrell, analyst at FundStrat, wrote in a report Tuesday that “we have ample reason to believe that the ‘run’ on UST was not a coincidence, but a deliberate exploit of UST’s architecture.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Terra’s LUNA, UST Relisted On Binance As New Data Reveals Movement Of LFG’s Bitcoin ReservesEarlier today, Binance announced that it had suspended trading of LUNA and UST pairs, after issuing a cautionary notice yesterday. Later, CZ stated that Binance had resumed trading for the said coins after a 2-hour meeting with undisclosed parties.
Lire la suite »
Justin Sun Talks USDD Stablecoin in Wake of LUNA/UST UnravelThe controversial crypto entrepreneur explains how an algorithmic stablecoin can still succeed while denying rumors he was behind the de-pegging of Terra’s failed UST.
Lire la suite »
'$DAI Will Die' Tweet Twisted Back on Terra's Kwon as UST Loses $1 Peg“By my hand $DAI will die,” stablekwon tweeted in March. As his stablecoin $UST falls as low as 23 cents, DAI jumps back on top. But it still has a long way to go before it gets back into its pre-crash shape.
Lire la suite »
Stablecoin Shuffle — Terra Fiasco Shakes up Fiat-Pegged Crypto Economy, Over $35 Billion Disappears – Bitcoin NewsJust as it caused carnage in the crypto economy, Terra’s recent downfall has caused a great shift within the stablecoin ecosystem.
Lire la suite »
Lido Deploys Additional Curve Pool to Improve Liquidity Around Bonded ETH Peg – Defi Bitcoin NewsLido’s bonded ethereum tokens have been under pressure due to an imbalance on Curve’s bonded ethereum (stETH) and ethereum pool.
Lire la suite »