Discover and read the best of Twitter Threads about #depeg

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OUTSTANDING DE-PEGGED STABLECOIN
 
Our @Cardano ecosystem is also having our own stablecoin, known as $DJED - @DjedStablecoin. However, before deep diving into the $DJED, let’s take a first look at other stablecoins on the crypto market to have a lesson.
 
#stablecoin #depeg
@Cardano @DjedStablecoin 1. Well, if you guys are involved in the crypto market lately, I am sure you guys shall be familiar with $UST ($USTC) of the @terra_money ecosystem. $UST is the algo-stablecoin, which has been guaranteed by $LUNA ($LUNC).
 
#stablecoin #depeg
@Cardano @DjedStablecoin @terra_money 2. In May, we don't know yet if this is a purposely attack or anything else behind this mess, $UST had lost its peg and completely went to nearly 0. Since then, $UST is just like a meme token for traders to speculate, not remaining its role as a “stablecoin”

#stablecoin #depeg
Read 9 tweets
How did we speculate on the market based on information appearing on the anonymous #web3 bigsb.io platform?

We check if the information in #bigshortbets is reliable!

THREAD 🧵⬇️
[1/x] CHAPTER ONE - #LUNA & $UST

It was a very high-profile case, for several months we were talking about the potential demise of LUNA in many media, even @dokwon engaged in insulting @rafal_zaorski.
We started in January, there are some baits about.

bigsb.io/bait/9035ef00-…
[2/x] During the #depeg at the beginning of the year, we warned the community about #Terra problems and the high yields needed to capsize the project. They called us FUDsters then.

Read 25 tweets
1. If $UST ends up in a death spiral and cannot snap back to hold the peg, that really means the end of algo -stablecoin era, and all algo-stablecoin holders should now swap for $DAI, $USDC or $USDT. Here’s why:

@LFG_org @stablekwon @terra_money
2. To be a resilient stablecoin, you need to have (i) the economy of scale or (ii) enough backing with the underlying asset for users to redeem. $UST is definitely the first type. It bootstraps the liquidity and scale to a $18B crypto asset - top 10 market cap, too big to fail
3. Before the avalanche of algo-stablecoins taking place, $UST should be the only one whose volatility absorber $LUNA is also the native token for the whole successful #Terra blockchain. This creates a lot of use cases: whenever you spend on $LUNA, it creates a source of demand.
Read 26 tweets

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