Did Someone Deliberately Attack Terra/Luna to Kick off a Death Spiral? - Ep.351
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
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Episode Links
Jon Wu
---Twitter
------ https://twitter.com/jonwu_
Jon’s Write-Up on the UST Depeg
---Article: <a href= "https://www.notboring.co/p/terra-to-the-moon-and-back"> https://www.notboring.co/p/terra-to-the-moon-and-back</a>
---Thread: <a href= "https://twitter.com/jonwu_/status/1523793482850050048?s=20&t=lvB1zdz98wu5TE5emh4fCw"> https://twitter.com/jonwu_/status/1523793482850050048?s=20&t=lvB1zdz98wu5TE5emh4fCw</a>
Previous Unchained Coverage of Terra
---Do Kwon on backing UST with BTC
------<a href= "https://unchainedpodcast.com/do-kwon-is-backing-ust-with-bitcoin-and-heres-what-else-he-is-building/">https://unchainedpodcast.com/do-kwon-is-backing-ust-with-bitcoin-and-heres-what-else-he-is-building/</a>
---Kevin Zhou on the risk of UST’s death spiral
------<a href= "https://unchainedpodcast.com/heres-why-usdn-de-pegged-from-the-dollar-and-why-ust-might-too/"> https://unchainedpodcast.com/heres-why-usdn-de-pegged-from-the-dollar-and-why-ust-might-too/</a>
Terra:
---Terra proposal to accelerate the burn of UST and increase the base pool: <a href= "https://station.terra.money/proposal/1164">https://station.terra.money/proposal/1164</a>
------<a href= "https://www.theblockcrypto.com/post/146254/terraform-labs-ceo-do-kwon-unveils-plan-to-restore-ust-peg"> https://www.theblockcrypto.com/post/146254/terraform-labs-ceo-do-kwon-unveils-plan-to-restore-ust-peg</a>
---Terra halting the network: <a href= "https://twitter.com/terra_money/status/1524785058296778752?s=20&t=FUJkFuN8PyxRoF9TCPgrGg"> https://twitter.com/terra_money/status/1524785058296778752?s=20&t=FUJkFuN8PyxRoF9TCPgrGg</a>
---Terra going live again: <a href= "https://twitter.com/terra_money/status/1524812171179327488?s=20&t=FUJkFuN8PyxRoF9TCPgrGg"> https://twitter.com/terra_money/status/1524812171179327488?s=20&t=FUJkFuN8PyxRoF9TCPgrGg</a>
---Regulatory risks: <a href= "https://www.theblockcrypto.com/post/146426/the-sec-has-already-sued-terraform-labs-it-has-every-reason-to-investigate-ust-lawyers-say"> https://www.theblockcrypto.com/post/146426/the-sec-has-already-sued-terraform-labs-it-has-every-reason-to-investigate-ust-lawyers-say</a>
Other Recaps on Terra:
---CoinDesk on how Do Kwon was behind previous algorithmic stablecoin: <a href= "https://www.coindesk.com/tech/2022/05/11/usts-do-kwon-was-behind-earlier-failed-stablecoin-ex-terra-colleagues-say/"> https://www.coindesk.com/tech/2022/05/11/usts-do-kwon-was-behind-earlier-failed-stablecoin-ex-terra-colleagues-say/</a>
---Rekt: <a href= "https://rekt.news/luna-rekt/">https://rekt.news/luna-rekt/</a>
13 May 2022
48 MINS
48:20
13 May 2022