2022-05-10 05:44:56
LUNA - UST situation explained
The crypto markets have seen an increased turmoil over the last 24 hours. The whole LUNA-UST situation escalated quickly, as the UST peg is under heavy stress test atm. We can point out some events derived from the recent UST depeg:
March 9th, 2022
A lot of defi protocols have UST pools, including money markets.
The recent move caused many liquidations in the defi space (especially bLuna and Degenbox strategies). Big withdrawals from Anchor protocol of UST to sell it due to the uncertainty.
The curve pools for UST are currently unbalanced (way more UST than other stablecoins)
UST mcap surpassed LUNA mcap, which is no good given UST is heavily backed by $LUNA (death spiral potential).
Luna Foundation Guard (LFG) already started and will have to sell the $BTC reserve at current market prices, in order to try to maintain UST peg.
This situation isn’t good for the overall crypto market, essentially generating a lot of FUD, given LFG needs to sell their Bitcoin holdings and also UST currently being spread in many defi applications.
: Admin @GRM_premium
240 viewsVINTAGE ( Shruut ), 02:44
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