Learn from your mistakes. Anyone who said that Anchor was a risk-free or no-risk investment should be removed from who you listen to.

The way that UST stabilizes is that LUNA is minted and used to buy UST. It’s effectively taking market capitalization out of LUNA and putting it into UST.

The problem now is that UST needs to return to $18 billion to regain peg, and is at $8 billion, a $10 billion deficit. You can’t fix that problem by taking market cap out of LUNA and putting it into UST, because LUNA doesn’t have enough market cap: its total market cap is <$1 billion.

The LUNA experiment has failed, and it’s not coming back without some influx of outside capital, which would effectively be a restructure of the whole LUNA/UST concept.

I got rid of my LUNA/UST LP when the combined market caps of LUNA and UST started approaching the market cap needed to keep UST afloat, so I lost less than some, but I still lost about $2k total in the last week. I’d have to dig up my tax records but I think I’m slightly behind on the whole Terra ecosystem when you include my original buy low + sell high of LUNA back during the bull market.

However, that’s why I was diversified. I exited shorts on AAVE and XRP netted me more than that this week, and I used the profits to buy 50% ETH, 25% LINK, 12.5% MATIC, 12.5% AVAX which I expect will give me even better returns. My LP tokens have performed extremely well this week also. If you follow market principles, you can survive events like this.

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3 thoughts on “Learn from your mistakes. Anyone who said that Anchor was a risk-free or no-risk investment should be removed from who you listen to.”

  1. About your title:

    There might be a case in favor of listening to people who got burned AND learned their lesson. Their experience could prove valuable.

    Only listening to people who have always been right doesn’t guarantee anything. They were probably just lucky and could become overconfident. Almost no one is a genius and the ones who are probably don’t post on reddit.

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  2. Every single post here for months when asked about stablecoin yields had someone recommending Anchor as the safe, stable, and reliable option and it was always upvoted to the top.

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  3. Only safe when you don’t have a counter party risk. Not your keys not your Crypto.

    If only there was something you can stake and earning yield while not giving away your coins. Wouldn’t that be great?

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