We know the current situation is painful for everyone. The UST depeg has led to losses for our users and many others in the industry. Also for us. We'd like to provide a clear comment about our use of Anchor/UST and the risks. Please read on:
We want to remind the community that we have always been transparent that any yield is generated via UST and Anchor. We also disclosed the risks associated with Stablegains, including the risk of UST depeg.
May 17, 2022 • 6 tweets • 2 min read
Hi everyone
We have reenabled direct withdrawals in USD via ACH and Wire. Now you don't need to move funds via an exchange to access the USD value of your balance in Stablegains. We expect the first batch of USD withdrawals to process during the next 24 hours.
Read on 🧵
Please note: USD withdrawals will be at the market rate for UST:USDC. Due to the extreme UST depeg you should expect to receive a significantly smaller amount of USD than the number of UST shown in your Stablegains balance.
The DeFi ecosystem is experiencing an ongoing depegging event with UST. At this point, it is difficult to judge whether this one - like the several previous ones over the years - is only a temporary event or if it will do permanent damage to the value of UST.
Why is this important for us? As a reminder, Stablegains is a service that helps individuals earn yield using DeFi, with the only DeFi tool currently supported being Anchor Protocol's deposit side. Anchor uses UST as the asset that is deposited and borrowed.
