3min chapter

Odd Lots cover image

This Is How the Terra Stablecoin Actually Imploded

Odd Lots

CHAPTER

Terra Slash Lunas: Is It a Perpetual Motion Machine or a Giant Rugoldbergn Machine?

The yields on offer from terra slash luna were exceptionally high, i think, something like 19 or 20 %. And this is another question that we ask a lot in the crypto or defi space more broadly, but where do those yields actually come from? Like, how does this entire incentivisation mechanism work? Yes, definitelyd and i completely agree with you that i think this component of it, which is the anchor, yields on deposits for us t a this 19 ahalf %, which then eventually dropped down to 18%. That's exactly the hand crank in this perpetual motion machine that makes it not perpetual. I know that's a little bit abstract, but you now, that

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