In this thread, I will share my thoughts on what caused the depeg.
UST depeg summary: WHY AND WHAT CAUSED UST DEPEG?
Hint is in Anchor protocol and the status of Curve UST pool. @anchor_protocol @terra_money
In this thread, I will share my thoughts on what caused the depeg.
First, UST deposits in Anchor protocol started to exit, which means more circulating UST in the market → sell pressure.
https://t.co/gx9nr7kNcN (05-08-22, 02:30 AM)
https://t.co/bPKhvgfT72 (05-08-22, 02:40 AM)
https://t.co/8Yd056olrL (05-08-22, 03:00 AM)
However, one big problem remains. Liquidity decreased a lot in Curve UST3CRV pool. 3CRV tokens were almost drained in the pool compared to week before.
This means, little UST absorption liquidity for downside.
On May 10th, 2022, around 17:00, another massive withdrawls of UST initiated in anchor protocol. $0.8B withdrawls during one hour.
This generated negative feedback loops where Luna price dropped more drastically.
However, in this time, there weren’t much liquidity left in the curve pool.
Therefore, UST price in the pool also dropped significantly even with a stableswap mechanism.
However, it didn’t take long to congest the on-chain vAMM with high spread fees.
- Don’t ever grow the protocol with un-sustainable yields. This will trigger fear during downside.
- Be ware of the status of Curve pool and take care of the liquidity there.
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We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.
Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)
It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.
Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".
