Thread by @SmartStake

1/8 - $UST & it's peg stability:
- Watch this intro video to understand how Terra stables work:
- Last 6 months have seen an explosive growth in Terra network, its product & stable coin adoption

@terra_money

2/8 - At the same time, the community has grown many folds & some may not fully understand how stables work
- The events of last few days in crypto have been another humbling experience about how crypto works. X times price growth & huge corrections r part of how all chains work

3/8 - Many of you have noticed how the UST peg is off by 1-2% for the last few days
- If you have been around since $MIR launch, you would have noticed how $UST has been selling at a premium whenever there was increased demand on $UST.

4/8 - The increased demand presented arbitrage opportunities & companies like jump trading or others using @hummingbot_io or custom bots have been taking advantage when $UST is at a premium to restore the peg

5/8 - The reverse is happening right now. The $UST demand is low & supply is more. Arbitragers have been able to buy $UST @ a discount & mint $Luna 2 make some profit. There r parameters/rules built in which prevent aggressive minting of $Luna (e.g. 0.5% charge 4 redemptions).

6/8 - The Terra stablecoins peg system is working as designed & just like everything else, peg stability aspects will go through further improvements as Terra scales & market behavior highlights inefficiencies (if any).

7/8 - Read this upcoming proposal which aims to improve peg stability - agora.terra.money/t/liquidity-pa…

TFL is a team full of builders & now we have so many project teams building on Terra network. Learn more about Terra and about all the projects that are building on Terra

8/8 - No one can predict where the price goes next. This is a long term game & I hope we all will be together in this journey 🙏