What impact will Terra ecology have on the entire encryption field after the “big bloodbath”?

In other words, writing this article is really emotional!

Because Terra’s 7 weapon series was just written last month, this month, the Luna crash event that can be recorded in the history of the blockchain happened, and the face hit was a bang…

No matter how strong your seven weapons are, I will still break all methods with one sword!

In just a few days, the market value of tens of billions and the top five in market value were blocked by a sword.

There have been countless articles on the Internet about the causes and consequences of this incident, so I won’t go into details here, but just give a brief introduction. I will focus more on the impact of this incident, the follow-up, and our reflections on it.

Event Introduction

Remember Terra’s last weapon, the box, introduced in 7 Weapons?

The 4pool of Crv composed of UST, FRAX, USDC, and USDT that claims to kill Dai.

It’s hard to say whether it can kill DAI, but if the box is successfully deployed, it will at least make Luna “hard to kill”.

But there are not so many if~

Friends who have read Xiuxian YY novels must be familiar with it. There are often some experts in Xiuxian who reach the peak of certain realms, and then prepare for a long time and build a great ascension formation.

But they are often taken away by a set of backstab sap gouges from their nemesis at the time when they are most happy.

This time, the thief, or the assassin, also picked the perfect time to launch a sneak attack, which was dubbed “Coin Suo” in the circle because it was too similar to Soros’s attack on the Thai baht.

As for who this Soros is, no one knows. Some people say that it is Wall Street capital Citadel, and some even say that it is the cheese that UST moved the dollar. There is a shadow of American national power behind the sniping… It is basically impossible to know what the truth is. It is basically an established fact that people are sniping, because the timing is really coincidental.

On May 8th, LFG took 150 million UST from the original UST-3Crv 3pool and began to prepare for its own cultivating array 4Pool, resulting in the 3pool’s liquidity dropping from 1 billion to 700 million, and the threshold for depleting UST decreased. to about $300 million.

Just 15 minutes after the withdrawal, a $84 million UST began to sell, causing the pool to become unbalanced, and soon after, several millions of dollars worth of UST began to sell on Binance.

On the same day, UST broke off its anchor to around 0.97 and never returned to 1, and panic began to spread. The next day, a large number of USTs on Anchor began to flee, and UST plummeted. Terra officially began to sell a large amount of BTC and ETH to save UST. However, the market value of UST was too large, and the reserves of BTC and ETH were far from enough to support the market value of UST. In the case of a large number of runs, it finally collapsed completely. , Luna’s reverse arbitrage mechanism began to spin wildly, and a huge amount of Luna was minted. In the end, the farce, or tragedy, ended with a few more zeros in the number of Luna per day and a few more zeros after the decimal point in the price.

Whether the attacker establishes a short position in BTC or a short position in Luna in advance, the probability of this wave of profits is more than 1 billion US dollars. All the funds for dry liquidity belonged to the initial capital of the attacker, which was $84 million at the beginning. In just 72 hours, it is still a very generous return on investment.

This is the cold-blooded and ruthless financial market. Do you think Terra has achieved a market value of tens of billions of dollars. “Too big to Fall?”, Too young too naive. As a country’s legal currency, the Thai baht can be used, not to mention a project party in the circle. ?

Impact on the whole circle

The impact is actually quite big, and I personally think it even surpassed 312 of the year. After all, 312 is just a simple liquidity crisis.

This time the impact on the circle can be said to be in all aspects.

Terra Ecosystem – In addition to Luna and UST, Terra itself, as a public chain with high market value, actually has a pretty good ecosystem. This time, it has basically become a funeral. The currency prices of star projects such as Anchor, Mirror, Astro, and Mars are also rising. After returning to zero, the follow-up location of the team and the project is very worthy of attention.

Cosmos Ecosystem – There was no stablecoin on Cosmos before. As the only stablecoin introduced some time ago, UST actually occupies a large ecological niche in the entire Cosmos. The above-mentioned borrowing pool or LP of Dex also suffered heavy losses this time. The entire ecosystem is equivalent to Bleed a lot.

Native stablecoin track (not USDT, USDC) – After AMPL, ESD, BAS and other pure calculation failures, people placed high hopes on UST and Frax. This time UST fell, Frax’s confidence was also affected, and DAI took the lead The mortgage-type stablecoin of 2019 has returned to the C position again, and it is estimated that people’s confidence in the stablecoin without the endorsement of high-quality assets will be difficult to restore during this bull-bear cycle.

Curve War – Curve War was a hot topic a few months ago. The main reason is that various blockchain native stablecoins competed for liquidity on Curve’s “election bribery war”. Due to the heavy setback of the native stablecoin track this time, The probability of vote bribery on Curve will be much cooler, and it will be directly reflected in the currency price and protocol revenue of Crv and CVX.

All Altcoins – It can be seen that within 72 hours of 5.9-5.11, BTC and ETH fell by 10-20%, and a large number of altcoins fell in half every day, even if they were considered high-quality public chains or Blue-chip Defi is also not immune. It can be said that the consensus of the entire circle has once again returned to the “true” high-quality assets such as BTC and ETH that have passed through several rounds of bulls and bears. Other projects, no matter how good you are, everyone will treat you now. Confidence, and the market value of billions and tens of billions at every turn, have a big question mark in my heart.

event follow-up

At present, Terra has made a proposal, which DK personally proposed:

Fork a new Luna with a total Token of 1 billion.

40% to the Luna Holder before the crash
40% to the UST Holder
10% to the current Luna Holder
10% to the community fund pool

The proposal has not yet passed, but it should be said that there is still hope.

 

image.png

 

After all, Terra is a once successful financial public chain, and the shell and brand alone are worth a lot of money.

There are dozens of projects in the ecosystem, hundreds of developers, and thousands of huge communities. These are all intangible assets. Find a way to revalue, start over, and attract these “intangible assets” back into the package. , is undoubtedly a better ending than total death.

It’s just that the previous book losses of Luna and UST’s Holder are destined to not be recovered much. In a disaster, someone will always pay the bill.

Then there is the latest news. It seems that CZ does not support or is optimistic about the “new Luna” model, which also casts a big shadow on the passage of the proposal. After all, CZ may be one of the most influential people in the circle. one.

our reflection

For those of us who invest (speculators), there is actually a lot to reflect on.

Why did some people lose a lot in this crisis, while others saw him as an opportunity, so they made a lot of money?

Eggs cannot be put in one basket – any blue chips you think are high-quality, may encounter the black swan time of Luna this time, so even if you are optimistic, All In a currency is extremely undesirable unless you All In The ones are BTC and ETH.

In-depth understanding of the currency you invest in – If you don’t know enough about the arbitrage mechanism between Luna and UST, and you don’t know the burning and minting data of Luna/UST, then you may be thinking about the first two days of Luna’s crash. To pick up the falling knives, after all, the 110-dollar Terra fell 10 or more knives, which looks very tempting… and then naturally suffered heavy losses, and for those players who understand the Luna mechanism very thoroughly and operate well, as far as I know, there are so many This method makes a lot of money.

Move bricks to arbitrage, buy UST, go to Terrastation for a discount to mint luna, and then go back to Cex to sell.

Use the time of Binance’s withdrawal and withdrawal to make bands up and down.

After the start of the death spiral, it was predicted that UST had no hope of returning to the anchor, and Luna would directly open the scene of the massive casting by arbitrageurs and then directly open Luna in place.

Use OK Luna’s high price but close withdrawal, and use OK’s ANC address to force recharge and arbitrage.

If Anchor’s interest rate can be adjusted in time, Terra’s BTC reserves are larger, UST’s scale is smaller, and 4Pool is established earlier, will UST have a chance to escape this disaster and become a real success?

Maybe the entire industry will reflect on the return from the current APY-based, belief-based, and pie-based trends to the old way of being based on innovation, fundamentals, and Tokens. However, Mr. Mindao said well, “This market is actually quite neurotic, if you don’t have enough Ponzi, everyone will not buy it, the market value will be much lower, and it will be difficult for the project party to make a choice.”… Sometimes it is quite incomprehensible.

Friends, did you gain or lose this wave of Luna?

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-impact-will-terra-ecology-have-on-the-entire-encryption-field-after-the-big-bloodbath/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-05-16 10:06
Next 2022-05-16 10:07

Related articles