In fact, their oracle, onchain market, and Luna staking reward mechanisms are designed very carefully.
The EPIC CRASH of Terra is not about it’s mechanism - it’s all about the operation.
In this thread, I’ll talk about the FUNDAMENTAL REASON OF CRASH.
In fact, their oracle, onchain market, and Luna staking reward mechanisms are designed very carefully.
This means that the demand of UST is totally concentrated on one use-case (14B out of 17B).
Even with the slight depegging of UST would lead to large change in UST demand.