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.
$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.
https://twitter.com/hasufl/status/1452305561475850255
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.
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.
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
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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