What happened to $UST and $LUNA?

A long thread that looks at what happened in the last 4 days

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It all started with a massive sell-off on Curve. There was an $85 million UST-to-USDC swap that had the 3-pool slightly out of imbalance.

To put the Curve pool back into balance 50,000 $ETH was sold, and another 20,000 $ETH was sent to Binance.

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Next, rumors about what happening is spreading quickly on Twitter.

This leads to a $2B withdrawal of $UST on Anchor.

Now the peg is moving between 0.987-0.995.

However, the first defense is successful. But the peg never fully recovered.

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Before we deep dive into the rest of the story, let's take a look at 4 factors that were in place to make sure that the attackers would succeed:

1) The attackers borrowed 100,000 $BTC from Gemini (which they short)

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2) The attackers make a $1B $UST deal OTC

3) LFG (Luna Foundation Guard) is buying $BTC in March and April as a defense mechanism to protect the peg

4) The announcement of the switch from the 3-pool to the 4-pool

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Arbitrum and its wider ecosystem are on fire right now.

I've found many DeFi protocols with a lot of potential.

Why I'm investing in Arbitrum and a breakdown of my portfolios that you can copy

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In this thread I'll go through the following:

1️⃣ What is Arbitrum

2️⃣ What makes it so special?

3️⃣ 3 great DeFi protocols you must know about

4️⃣ Strong DeFi protocols with lots of upside

5️⃣ An update on my 2 Arbitrum portfolios

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1️⃣ What is Arbitrum

Arbitrum is Ethereum's biggest Layer 2 to date. ⚡️

A Layer 2 blockchain is an extension of Ethereum that benefits from the security assurances provided by Ethereum while operating independently.

It can do all of this because it's an Optimistic Rollup

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Optimistic Rollups speed up Ethereum's smart contract by using a second-layer chain to handle most of the work, while still recording everything on the main chain for security. 🔒

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2️⃣ What makes it so special?

Everybody has been calling Arbitrum their new home, but why?

It's been growing at an astonishing rate for many months and it currently sits as the 4th biggest chain by TVL and as the 3rd biggest chain for its 24hrs trading volume. 🤯