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
Previous Unchained Coverage of Terra
- Do Kwon on backing UST with BTC
- Kevin Zhou on the risk of UST’s death spiral
Terra:
Other Recaps on Terra:
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