So my very very basic understanding is this: A lot of

Question

So my very very basic understanding is this: A lot of

UST has entered the ecosystem over recent months due to people seeking the stable staking rewards (20% etc)

This resulted directly or indirectly a reduction of LUNA supply which in turn caused LUNA to appreciate a lot in price.

Now after yesterday’s event we have a serious decoupling of UST peg which ultimately will only be fixed once normal arbitrage operations commence = people BUY UST sub 1 USD-> BURN UST -> MINT 1 USD of Luna -> SELL LUNA FOR ARB profit.

This will fix the peg however introduce even more LUNA into the system (which is what we are seeing I’m guessing right now). Only once PEG is stabilised - can Staking rewards (4pool) attract UST interest that will burn Luna supply and let it rise again

Is this correct?

#blockchain #cryptocurrency #english #luna

0

10.05.2022

11 ответов

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Squnchy Автор вопроса

Can anyone have a read of this and tell me if I’m correct please

0

10.05.2022

Thevren

More ust buys means more luna burn. Or opposite. So 1 ust equal 1$ luna always. System want to equal itself with minting and burning. Selling and buying.

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10.05.2022

Crypto NFT

The ability to burn UST for 1 actual dollar of LUNA at market price CEASES at some point is the issue, this is not well described anywhere I have come across..... It is not in the mint burn terrastation docs...... this mechanism is at the heart of the protocol, and the mechanism of stopping it with a fall like last night (dao voted on whatever) needs to be in the documentation front and center.

0

10.05.2022

Squnchy Автор вопроса

Thevren
More ust buys means more luna burn. Or opposite. S...

More UST buys can mean more Luna burn But not if they buy UST to mint Luna (so they can arb) Right?

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10.05.2022

Mister Bean

Squnchy
More UST buys can mean more Luna burn But not if...

Bad idea

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10.05.2022

Crypto NFT

Squnchy
More UST buys can mean more Luna burn But not if...

the arb mechanism did not work last night. the burn UST, mint Luna, was done not for 1 USD of Luna, but for 80 cents of LUNA, it was at market price last night. This is by design... but seemingly very few know this about LUNA—— it "worked" in that it stopped.... they designed it like that, but the documents do not say this up front..... majority of people believe that mechanism is always there, it stops/pauses....... at certain points, effectively only hedge fund whales could time it, and once one does, it saturates it

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10.05.2022

Squnchy Автор вопроса

Crypto NFT
the arb mechanism did not work last night. the bu...

Ahhh ok soo The 1 UST = 1 USD of LUNA is not always true ? In what scenario does that not hold? As you say , it wasn’t the case last night but why wasn’t it the case ?

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10.05.2022

ghostizbud

Crypto NFT
the arb mechanism did not work last night. the bu...

Always thought whales do that not all

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10.05.2022

Thevren

Squnchy
Ahhh ok soo The 1 UST = 1 USD of LUNA is not alw...

They couldnt quess the biggest shitcoin btc moves.

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10.05.2022

Crypto NFT

Squnchy
Ahhh ok soo The 1 UST = 1 USD of LUNA is not alw...

not clear, there is like it is true for the first 200 million or whatever in a given time period, then the price goes down from 1 ust burned = 1 dollar LUNA minted, I have not seen the algorhythm, and few seem to know that is what is actually going on, when I tried, it was fully gone, the price was equal to market price

0

10.05.2022

yyy · Accepted Answer

yyy

Squnchy
Can anyone have a read of this and tell me if I’m ...

Noone knows if it is correct because that's in the future. But that is roughly what I expect as well.

0

10.05.2022

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So my very very basic understanding is this: A lot of

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