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Difference between revisions of "LUNA Collapse in May 2022"
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0xBigDaddy (talk | contribs) (Created page with "In May 2022, bearish crypto conditions resulted in the depeg of subsequent collapse of LUNA which crashed from over $80 to $0.69 in the space of five days. UST is the stable coin which can be minted with LUNA as part of the Terra ecosystem which is ran by Do Kwon. == Background == UST is a stable coin which can be minted by burning LUNA. Its redemption mechanism lets a user mint LUNA by burning UST which puts further sell pressure on the stablecoin peg. In case...") |
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== Initial depeg == | == Initial depeg == | ||
Over the 7th of May, 9 figures of liquidity was removed from the [[Curve Finance]] pool resulting in widespread panic and a depeg of around 2% which was quickly brought under control. DoKwon implied on Twitter there had been a coordinated attack to create panic and destabilize the peg by simulatenously removing funds from [[Anchor]] and Curve Finance. | Over the 7th of May, 9 figures of liquidity was removed from the [[Curve Finance]] pool resulting in widespread panic and a depeg of around 2% which was quickly brought under control. DoKwon implied on Twitter<ref>https://twitter.com/CaetanoManfrini/status/1523145923571814400</ref> there had been a coordinated attack to create panic and destabilize the peg by simulatenously removing funds from [[Anchor]] and Curve Finance. The Luna Guard Foundation also announced it had loaned $1.5b as a further effort to protect UST<ref>https://twitter.com/LFG_org/status/1523512201088143360</ref>. | ||
== Sources == | == Sources == | ||