1/ Over the last few weeks, we at Jump Crypto have been studying the UST depegging and have three key observations.

2/ First, the episode was triggered by a combination of trades in the UST/3CRV pool during a seventy-five minute window on Saturday, May 7.

3/ These trades involved TFL withdrawing UST liquidity, and two wallets putting large UST sell orders through the pool, upsetting the pool’s balance and depth.

4/ Second, outflows from Anchor — particularly overnight on May 7 and on the morning and early afternoon of May 9 — put substantial pressure on the UST peg.

5/ Large depositors disproportionately drove the outflows. In fact, small depositors increased their exposure during this episode.