Kevin Zhou, co-founder of Galois Capital, discusses a crazy week in the world of algorithmic stablecoins that saw USDN de-peg from the dollar and Terra unveil plans to create a new liquidity pool on Curve to strengthen UST. Show highlights:
- how USDN and Waves works
- what made USD de-peg
- why Kevin thinks algorithmic stablecoins fail so often
- what Kevin thinks about backing UST with BTC
- how 4pool works in the context of Curve Finance, 3pool, UST, Frax Finance, and Redacted Cartel
- why Kevin believes Anchor is the reason UST could de-peg
- what might happen to Terra and the crypto market writ large if UST were to de-peg
- why lowering yields on Anchor could depress LUNA’s price by 8x
- how UST and LUNA redemptions work
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Galaxis: https://galaxis.xyz/
Episode Links
Kevin Zhou
UST
- Why Terra would want to implement 4pool (in the context of the curve wars)
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- Do Kwon on trying to make DAI less relevant
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- FXS price jump
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- Galois Twitter threads
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- UST vs LUNA market cap risk
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- Why curve wars matter
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- Terraform Labs’ CEO Do Kwon’s appearance on Unchained
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- Anchor
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USDN
- Recap of Waves x Alameda Drama
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- OG thread pointing out Waves market manipulation
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- Waves founder blaming Alameda
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- Governance proposal to kill Alameda’s short
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