UST: New Paradigm or Ticking Time Bomb? | Terra Bear vs. Bull

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Apr 7, 2022

Join José Maria Macedo, a Founding Partner at Delphi Digital advocating for Terra, and Jordi Alexander, CIO at Selini Capital, presenting the skeptical view. They dive deep into the explosive growth of Terra and UST, exploring the role of Bitcoin as collateral and the implications of recent strategic purchases. The conversation heats up as they debate the sustainability of algorithmic stablecoins and the risks of centralization in the ecosystem. Can Terra redefine crypto finance, or is it a looming disaster? Tune in for a thrilling intellectual showdown!

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INSIGHT

Terra's Design

Terra is like MakerDAO built into Ethereum layer one, with Luna capturing value from UST growth.
UST, a decentralized stablecoin, is minted by burning Luna and burned by minting Luna.

INSIGHT

UST Collateralization

UST is collateralized by the Terra L1's value itself.
Redeeming UST mints new Luna, causing inflation and potentially a death spiral if demand drops.

INSIGHT

Bull Case for UST

Jose Macedo believes decentralized stablecoins are crypto's future, with UST leading the way.
He highlights UST's market cap, growth, and lack of reliance on centralized collateral.

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Terra is exploding. Do Kwon and the Terra ecosystem are turning Bitcoin into their collateral asset of choice to backstop LUNA and the UST stablecoin. Over the last several weeks, the Luna Foundation Guard (LFG) have bought over 30,000 BTC... and they don't plan to stop there.

As the LFG climbs the ranks of bitcoin holders, Do Kwon has started playing empire games—claiming victory over the Curve Wars with the 4pool (which contains UST, Frax, USDC, and USDT), calling for the end of DAI, and attempting to build out the Terra ecosystem as the ultimate power in the universe.

Is Terra (UST) the future of crypto money? Or is it a ticking time bomb waiting to explode? Perhaps the truth is somewhere in the middle, so we're going to debate it. From the bull side is Delphi Digital's José Maria Macedo, and representing the skeptics is Selini Capital's Jordi Alexander.

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------ Timestamps:

0:00 Intro 7:30 LUNA/UST Fundamental Properties 15:15 The Balance Between LUNA/ETH 20:00 Why Bullish/Bearish? 25:28 Why is UST a Successful Stable? 30:19 Are Algo-Stablecoins Unstable? 42:25 Anchor's Utility 48:02 Do Kwon $10B Purchase of LUNA 52:02 Is UST Becoming a Bank? 57:00 Risks of De-pegging 1:06:30 Has LUNA/UST Been Tested? 1:15:00 Do Kwon & Decentralization 1:27:50 Do Kwon's 4pool 1:39:05 Potential Nightmare Scenarios 1:48:04 Closing Arguments

------ Resources:

Jordi Alexander CIO of Selini Capital https://twitter.com/gametheorizing

Jose Macedo Founding Partner, Delphi Digital https://twitter.com/zemariamacedo

----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

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