May 13, 2022
Did Someone Deliberately Attack Terra/Luna to Kick off a Death Spiral? - Ep.351
UnchainedAbout this episode
Jon Wu, head of growth at Aztec Network, recaps a historically chaotic week in the Terra ecosystem that saw $UST depeg, Anchor depositors flee, and $LUNA fall 99%. Show highlights: how $UST, $LUNA, Luna Foundation Guard (LFG), and Anchor Protocol are supposed to work why Jon compares the Terra blockchain with VISA, LFG with the Fed, and Do Kwon with Jerome Powell how a previous $UST de-peg foreshadowed this week’s dystopian price action how a bitcoin short seemed to have kickstarted $UST’s depeg and why Jon thinks it was a deliberate attack why Luna Foundation Guard originally purchased Bitcoin – and how that plan backfired and made the Terra death spiral even more violent why $UST had such low liquidity this week – making it more susceptible to a bank run what Jon’s predictions are for $UST and $LUNA going forward what were the reasons behind Terra halting why Jon does not think this will be the end of algorithmic stablecoins why Jon thinks this should not affect ETH directly, even though there is a high amount of staked ETH in the Terra ecosystem Thank you to our sponsors! Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 Coinchange: https://coinchange.io Episode Links Jon Wu Twitter https://twitter.com/jonwu_ Jon’s Write-Up on the UST Depeg Article: https://www.notboring.co/p/terra-to-the-moon-and-back Thread: https://twitter.com/jonwu_/status/1523793482850050048?s=20&t=lvB1zdz98wu5TE5emh4fCw Previous Unchained Coverage of Terra Do Kwon on backing UST with BTC https://unchainedpodcast.com/do-kwon-is-backing-ust-with-bitcoin-and-heres-what-else-he-is-building/ Kevin Zhou on the risk of UST’s death spiral https://unchainedpodcast.com/heres-why-usdn-de-pegged-from-the-dollar-and-why-ust-might-too/ Terra: Terra proposal to accelerate the burn of UST and increase the base pool: https://station.terra.money/proposal/1164 https://www.theblockcrypto.com/post/146254/terraform-labs-ceo-do-kwon-unveils-plan-to-restore-ust-peg Terra halting the network: https://twitter.com/terra_money/status/1524785058296778752?s=20&t=FUJkFuN8PyxRoF9TCPgrGg Terra going live again: https://twitter.com/terra_money/status/1524812171179327488?s=20&t=FUJkFuN8PyxRoF9TCPgrGg Regulatory risks: https://www.theblockcrypto.com/post/146426/the-sec-has-already-sued-terraform-labs-it-has-every-reason-to-investigate-ust-lawyers-say Other Recaps on Terra: CoinDesk on how Do Kwon was behind previous algorithmic stablecoin: https://www.coindesk.com/tech/2022/05/11/usts-do-kwon-was-behind-earlier-failed-stablecoin-ex-terra-colleagues-say/ Rekt: https://rekt.news/luna-rekt/ Learn more about your ad choices. Visit megaphone.fm/adchoices