๐ช๐ฒ๐ป๐ป ๐ฒ๐ ๐๐ ๐ด๐๐ ๐ธ๐น๐ถ๐ป๐ด๐, ๐๐บ ๐๐ฎ๐ต๐ฟ ๐๐ ๐๐ฒ๐ถ๐ป, ๐ฑ๐ฎ๐ป๐ป ๐ถ๐๐ ๐ฒ๐ ๐บ๐ฒ๐ถ๐๐ ๐ฎ๐๐ฐ๐ต ๐ป๐ถ๐ฐ๐ต๐.
A few weeks ago someone made a poll about doing a post on stablecoins. Unfortunately, UST won at the time. This is a small update post because of the current situation.
๐๐๐ฟ๐๐ฒ ๐๐ป๐ณ๐ผ ๐๐ถ๐ฒ ๐๐จ๐ก๐/๐จ๐ฆ๐ง ๐ฃ๐ฎ๐ฎ๐ฟ ๐ณ๐๐ป๐ธ๐๐ถ๐ผ๐ป๐ถ๐ฒ๐ฟ๐:
You can always trade LUNA/UST as if 1 UST = 1$. If 1 LUNA is worth 100$, you get 100 UST for it and vice versa for 100 UST you get 1 LUNA.
This is true even if 1 UST is worth less or more than 1$.
This is the system behind maintaining the UST/USD peg. Arbitrage traders can swap LUNA/UST back and forth depending on how much UST is worth.
The more UST in circulation, the less LUNA there is, as they are burned to mine UST. LUNA rises thereby in the price. But how do you get people to swap LUNA for UST or buy UST?
๐ฎ๐ฌ% ๐๐ฃ๐ฌ ๐๐๐๐ฌ!!!!
๐จ๐ป๐ฑ ๐๐ฎ๐ ๐ถ๐๐ ๐ต๐ฒ๐๐๐ฒ ๐ป๐๐ป ๐ฝ๐ฎ๐๐๐ถ๐ฒ๐ฟ๐?
One or more UST whales have started selling massive amounts of UST. Their exit strategy is simple, just trade UST for other coins all at once.
Whether it was a deliberate attack against the Terra Network is still a matter of debate.
๐ช๐ถ๐ฒ? ๐๐ ๐๐ถ๐ป๐ฑ ๐ญ๐ด ๐ ๐ถ๐น๐น๐ถ๐ฎ๐ฟ๐ฑ๐ฒ๐ป ๐จ๐ฆ๐ง ๐ถ๐บ ๐จ๐บ๐น๐ฎ๐๐ณ, ๐ฎ๐ฏ๐ฒ๐ฟ ๐ป๐ถ๐ฐ๐ต๐ ๐บ๐ฎ๐น ๐ฏ๐ฌ๐ฌ ๐ ๐ถ๐น๐น๐ถ๐ผ๐ป๐ฒ๐ป ๐ถ๐บ ๐น๐ถ๐พ๐๐ถ๐ฑ๐ถ๐๐ ๐ฝ๐ผ๐ผ๐น?
Okay, if that gets used up, the Bitcoin reserves will have to take a hit.
๐๐ฎ๐ ๐ฟ๐ฒ๐ถ๐ฐ๐ต๐ ๐ฎ๐๐ฐ๐ต ๐ป๐ถ๐ฐ๐ต๐?
Then we'll just sell UST at a loss.
๐๐ฟ๐ด๐ฒ๐ฏ๐ป๐ถ๐:
Selling pressure for investors increase massively. LUNA is tanking, UST is tanking, even BTC is tanking because tens of thousands of Bitcoins need to be sold to create liquidity. Everyone wants out of UST and LUNA. ๐๐ถ๐ป ๐ง๐ฒ๐๐ณ๐ฒ๐น๐๐ธ๐ฟ๐ฒ๐ถ๐.
๐ช๐ถ๐ฒ ๐๐๐ผ๐ฝ๐ฝ๐ ๐บ๐ฎ๐ป ๐ฒ๐?
Just suspend trading, disable LUNA/UST swaps :D
Good luck to the people who are invested in it, I hope you get out of it in one piece. Best case scenario of course would be that UST manages to get back to peg. Wish you all the best.
