🌚UST DRAMMA | LUNA REKT???🌝 PART 1

Ok, first of all, what had actually happened?

UST algorithmic stablecoin which was supported only by LUNA with APR 20% on Anchor. Guess WHY LUNA price pumped so hard? Because people were buying LUNA and then minting UST to stake it with 20% APR. That’s why maaaany other layers 1 copied it to pump their tokens too and now we have algorithmic stablecoin from Near, TRON, and Waves.

WHY UNPEGGED?

Long story short, the market price went down, luna went down, people were panicking and withdrew money from Anchkor and UST. Domino effect.

RESULTS:

LOOOTS of people lost their money, LUNA is down 98%!!! It’s the biggest failure ever. UST was added to many lending protocols, yield aggregators, and dexes which means people's actives were liquidated. Many projects kept their companies’ funds in UST on Anchor, they also recked.

To save UST Terra LUNA had to sell 40К BTC. How do you think it affected the market? Before. 4-5 May, Jump Crypto took 74 400 ETH from Lido to buy back UST and support the price, which also influenced the ETH price.

After that UST is still unpegged, and LUNA's price is less than $0.5.

Now they want to print more LUNA to help UST, which means LUNA will go down even more! Just do simple math, how many Luna should they print to support LUNA price? Mathematically it's almost impossible to save UST only by mining LUNA. To ensure collateralization 1:1$ they need more than $6.47B.