UST touched 0.83, currently at 0.89

On Binance at least amid extreme bear market in stocks and crypto. Wondering why the mechanisms that Anchor had in place to maintain the peg have not kicked in when it went down so much. There’s a $5m buy order at 0.88 on Binance – is this them? Because the sell side is huge with $15m at 0.95 alone at the moment.

Surprised there isn’t any post on /r/defi about this when Anchor is clearly the first thing we all invest in and recommend. Looks like everyone’s just hodling it out in the bear market.

Are you arbing (how would that work by the way?) or trying to get UST at the current discount or panic selling? What now?

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40 thoughts on “UST touched 0.83, currently at 0.89”

  1. I got downvoted here from the rabid ust fans when I said ust was risky.

    Lesson to all that read this is even if something is upvoted, doesn’t mean it’s true

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  2. >Wondering why the mechanisms that Anchor had in place to maintain the peg have not kicked in when it went down so much

    It has kicked in, it’s just insufficient to keep the peg stable.

    The peg of UST relies on the price of LUNA. In other words the total market cap of UST relies on the total market cap of LUNA. If mcap LUNA > mcap UST then the burn + mint mechanism can sustain price. The mcap of LUNA has always been at least 30% higher than the mcap of UST, but things changed quickly.

    Here are the stats at the time of this comment:

    UST price: 0.68

    UST market cap: $12 billion

    LUNA mcap: 10 billion

    LUNA cannot support the price of UST even at the current 0.68 level, there is no way it can support it at the $1 level.

    However there is an alternative backing mechanism – the BTC reserves. Terra recently bought $3 billion BTC to support the peg. Do Kwon tweeted that much of it is already deployed to keep the peg stable. Will it be enough? So far the market says no.

    The whole thing will resolve in 24 hours one way or another.

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  3. People have warned me about not buying UST for so long and everyone here raves about it I don’t get it

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  4. How do i buy ust at these unpegged vakues. I have borrowed allot of UST thinking it woukd come off rhe peg some day. All the defi excanges are selling at like 99 cents

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  5. That is why I don’t like algo stablecoins. They are too volatile during crashes. eMoney or DAI are much better options since they don’t rely on this.

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  6. This sub shills the shit out of UST for their 20% ponzi payouts and have completely ignored the real risk. You are playing with fire here. I think the peg got around this level a year ago but recovered. IF we continue going lower though, there is a real risk of UST going into an actual death spiral.

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  7. Maybe on binance it fell that low but Usd market aggregate is 94c rn with 90c low. Apparently this is coordinated and whales are suppressing peg

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  8. It’s either the end or it’s not. Buy now and if it’s not the end you’re up 20-30%, if it is then end then you lose the coin toss and have an interesting story to tell. Don’t put in more than you can afford to loose. Don’t panic sell your UST and lock in a loss. Can’t do anything about it but wait and see.

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  9. I think the damage has been done. Last year when it depegged it was not in the spotlight. I think the trust in the project and token is done, at least for the foreseeable future. Why would any one risk it.

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  10. Been calling out this ponzi scheme for ages. The crazy thing is that there are STILL people in the Luna crowd who are like “hey, it didn’t go to 0! It’s all good!”

    Delusional.

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  11. Tbh we would need some strong coordination like stockbois did with Gamestop. Instead people scream and rush to the exit in a bloody stampede stomping on each other.

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  12. Did it only lose its peg on Binance or a few other centralized exchanges? Did it keep its peg on most DEXes and on Terra?
    In that case thats just a lot traders cashing out their stablecoin (which is still a bad thing because they lost trust in UST) and then even more sell because the peg is failing there.
    Synthetics are constatly losing their peg in the short term on some exchanges, that could be a great opportunity for arbritage trading if it has a better price on other exchanges

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  13. Any chance of a UST recovery? I was staking on binance when it depegged. I don’t know whether to hold for recovery or sell

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  14. Good time to burn some of that GREEN for UST. Short term it will surely recover peg, but that distrust will remain though.

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  15. yooo wtf, I feel like the biggest retard promoting this protocol.

    Thank the Lord though, I put it in for 6-7 months, and pulled out ~90k last month to fund another asset purchase. Stroke of absolute luck. I learn for next time.

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  16. That’s the inherent risk in algorithmic stablecoins. Fully backed stablecoins like USDC, EEUR and BUSD will never go off peg since they can be redeemed 1:1 to their pegged asset.

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  17. Does anyone here know what is going to happen to GRO.xyz Vault (GVT) given that UST is failing? It looks like PWRD should hold just fine, but I don’t understand the details to GVT’s exposure to UST.

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