“All the UST in Anchor is just rotator capital, farming for the subsidized yield,” said Zhou. “Rotator capital” means money that is moved rapidly from one protocol to another in search of high yield . If Anchor’s yield drops below the competition, there could be a significant rush to the exits, during which “rotators” in the staking pool would look to unload their LUNA and UST.
There are two reasons to wonder whether this is a real solution. First, it doesn’t change the basic math of UST’s exit liquidity in a crisis. According to Zhou, the total of all non-LUNA reserves and all UST being used in applications on the Luna chain only amounts to about $3 billion, against $18 billion in stablecoins outstanding.
“This could create an incentive to utilize strategies to acquire discounted BTC,” Clements says of the plan. Such a coordinated, intentional attack could look similar to George Soros’s legendary. The Bank of England spent more than 3.3 billion pounds countertrading to defend the pound’s peg against other European currencies, but ultimately failed.
There are other concerns, both with the BTC reserve plan and terraUSD’s basic structure. For instance, one aspect of a leading proposal for the reserve would rely on offering traders arbitrage incentives to replenish the BTC reserves once a crisis has passed. That’s perfectly sensible from a decentralization perspective, since in the long term you don’t want to rely on outside groups like LFG.
terra_money Time has long shown that the market is now preferred by most, just look at CMC who is at the top of the market in terms of capitalization among stablecoins
terra_money Decentralized Stablecoins have only one way, with Tether time has long shown that it is a fairly reliable solution, why people still prefer ust and others after that, I do not know
terra_money If Tether is on the top stablecoins, I can sleep well.
terra_money I like the 'experts' part ..... the whole space is new and we already have EXPERTS🤣
terra_money There are safer battle tested options for stablecoin yield out there as opposed to relying on $UST and AnchorProtocol. I've covered a few in this thread.
terra_money Hey guys, love Coindesk, but this story is getting old. You’re repeating it 10 times a week. Are you guys shorting Luna?
terra_money As every s(cam)tablecoin ^^
terra_money next headline, 'Do Kwon is Bat Boy, Terra Must Fail'.
terra_money this again
terra_money CryptoHarry_ iii_OIO_iii YodaResearch
terra_money Terra $UST is gradually proving itself to be the stablecoin of choice for operating in decentralised finance ($DEFI)! Very few truly appreciate how massive this will be Luna
terra_money No one talks about inflation rates in a bull market. Everyone just happy. But consider these yearly inflation rates: $AVAX: 39% $DOT: 10% $EGLD:19% $SOL:10% $MATIC:13% $CELO:43% $UNI:47% 🌖 $LUNA:🥇deflationary since 2019🥇 -----------------------------
terra_money $UST has cross-chain organic demand is being driven on multiple fronts in parallel, savings, leveraged yield, borrowing, synthetics, derivatives, gaming, CEX trading pairs, cross-chain liquidity, consumer savings, non-profit endowments. $LUNA
terra_money Experts is used real loosely here
terra_money 'Experts' 🤣 More like 🤡
terra_money Well written article. This makes me second guess my deposits in anchor_protocol
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terra_money WSGToken wsg is listed in 18 exchanges Pump pump Best gamefi Best P2E This team is worth it +1,445,000 holders +420,000 wachlists Team n marketing wallets are lock 2 n 5 years Wsg on 3 chains And etc. NFT P2E STAKE GAMEFI
terra_money SirLunaSniper sir pls advise
terra_money AsiaBroadband takes gold directly from the earth to token. No middle man.
terra_money XMetaverse_ X-Metaverse is a blockchain game developed by Cocos3D and can run on Android, iOS and PC. All game content items and characters are based on blockchain tokens and NFTs. The visual effects and gameplay of X-Metaverse are inspired by StarCraft and Star Wars.
terra_money This shit might be the next reason for the crypto collapse