Disappointed take. I respect @hasufl but let’s educate him on the matter.

$UST is backed by the arbitrage opportunity of when $UST depegs from a $1 and market makers steps in and takes advantage of profit opportunity between $UST and $LUNA.
The golden equation is that 1 $UST will always be exchangeable for $1 worth of $LUNA.

The price of $LUNA does NOT matter at all. It does not serve as collateral for $UST.

$UST can always keep its peg at any price point of $LUNA.

Just as long as $LUNA is greater than 0.
$LUNA value will always be greater than 0 because there is real cash flow tied to the token.

IMO, $UST peg mechanism is the greatest we’ve seen in crypto.

When market participants have a financial incentive to keep $UST pegged to a $1, that’s the strongest safeguard in crypto.
And it’s only getting stronger.

A whole digital financial economy is being born on @terra_money.

$UST will be better to hold than $USD. @alice_finance

These are the unsung heroes that have financial incentives to keep $UST peg to a $1.
@JumpCryptoHQ
@WhiteWhaleTerra

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More from @AlphaSeeker21

23 Oct
I’ve watched $MIR since it’s inception back in December of 2020.
TFL and Do Kwon knew the risks when they created the platform.

That’s why they made it as decentralized as possible. No tokens to team, governance proposals only by community, threw away any centralized keys.
All the TFL team did was write code.

And code should be protected as much as speech. It is their right to have freedom of code like their freedom of speech.

We should protect and embrace our engineers of the world because these guys are building our future.
$MIR is now a decentralized entity that cannot be shut down, censored, or centralized controlled.

The code will always live on and there will always be engineers willing to build on it.

Giving global access of ALL financial products to the whole world is a revolution.
Read 4 tweets

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