May 12, 2022
We’re currently watching one of the the largest events in Crypto history.
The sketchy outlook in the markets has triggered a run on the UST stablecoin, which began destabilizing in the last several weeks.
As time progressed, the peg worsened, and it eventually rolled over into a complete crash of both the value of UST, and the native asset LUNA.
What led to the crash? Was it a coordinated attack, or an inevitable collapse?
What Red Flags were there ahead of time? What’s the fallout from all of this? What lessons can we learn?
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Topics Covered:
0:00 Intro
6:30 Explaining the Terra Ecosystem
9:30 Tail Risk and Background
13:50 Bitcoin, Curve, and Monsters
17:54 The Initial Destabilization
20:14 The Panic Begins
24:40 The Charts
27:18 A Total Collapse
32:30 Regulators Get Involved
35:08 Was This An Attack?
37:58 The Collateral Damage
40:00 Do Kwon’s Big Talk
41:52 Rick Sanchez and Basis Cash
44:08 Community Response
46:05 How Do We Move On?
49:14 Don’t Take Shortcuts
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Resources:
Anchor Protocol:
https://app.anchorprotocol.com/earn
Buying Bitcoin:
https://twitter.com/LFG_Reserve/status/1507688906820620291
Curve Pools:
https://dune.com/SebVentures/UST
Binance Orderbook:
https://twitter.com/hasufl/status/1523817151471230976?s=20&t=FiTLk5ce5JmTg_s7QnWgMw
External Collateral:
https://twitter.com/ThinkingBitmex/status/1523526622044860416
Deploying More Capital:
https://twitter.com/stablekwon/status/1523733542492016640
Collapse:
https://twitter.com/ryanberckmans/status/1523712585794977792
Bitconnect:
https://twitter.com/TrustlessState/status/1524451573908209664?s=20&t=1cKzW3BXwfKsAdFAsObfLQ
Historical:
https://twitter.com/nic__carter/status/1524233730717585409?s=20&t=azvpduGJEOCfqyNCUFSBWA
Janet Yellen:
https://twitter.com/tier10k/status/1524031909067698180?s=20&t=FiTLk5ce5JmTg_s7QnWgMw
Coordinated Attack:
https://twitter.com/TerraBitesPod/status/1524229263469293570?s=20&t=FiTLk5ce5JmTg_s7QnWgMw
Vitalik Clip:
https://twitter.com/BanklessHQ/status/1523995722261147648?s=20&t=FiTLk5ce5JmTg_s7QnWgMw
Mental Health:
https://twitter.com/Shigeo808/status/1524149580048191488?s=20&t=azvpduGJEOCfqyNCUFSBWA
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Not financial or tax advice. This channel is strictly educational
and is not investment advice or a solicitation to buy or sell any
assets or to make any financial decisions. This video is not tax
advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter
to products I use. I may receive commission if you make a purchase
through one of these links. Additionally, the Bankless writers hold
crypto assets. See our investment disclosures here:
https://newsletter.banklesshq.com/p/bankless-disclosures