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But also is it true that if ust mc beats

luna its bad?

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I'm not 100% sure if/how it can be bad. It would introduce more volatility to luna, as that thread said. But it would mean luna supply is rather small and staking rewards are higher, so it should balance itself. Not sure how it could break the system

Don’t think it’s bad because UST is a Terra native stablecoin. Think of it as USD, just on Terra chain.

Xenth- Автор вопроса

well why is it considered the riskiest 'stable' coin

Xenth
well why is it considered the riskiest 'stable' co...

Because of Anchor.. the danger or risk of it maintaing its 20% APY. Hence, why they decided to slowly reduce it over time to maintain supply.

Xenth- Автор вопроса
A K
Because of Anchor.. the danger or risk of it maint...

so its only risk is the apy dropping due to sustainability?

Xenth
so its only risk is the apy dropping due to sustai...

Nope. UST is linked to Luna. So if Luna is no longer a strong narrative, what happens to the demand of UST?

Xenth- Автор вопроса
A K
Nope. UST is linked to Luna. So if Luna is no long...

Right, so just to clarify if luna shits the bed, so will ust? we are heavily relying on luna here? and yeah well if more people deposit that will effect the reserve wont it as more and more interest is given out

Nope. If Luna goes to hell, ppl might still sell into UST to hold and wait to buy back in. This maintains the eco. Unless, of cs, ppl sell off their Luna into USDC/USDT/other coins. Then that’ll ruin the eco. But pretty sure the team has their own reserves to initiate systems to maintain utility attraction.

Xenth- Автор вопроса
Xenth
What is cs?

Because* oops. My bad. Shortforms, haha.

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