Fears that TerraUSD (UST) will de-peg following weekend volatility have increased after it fell below $0.980.
The algorithmic stablecoin saw increased sell pressure on May 7 as more than $300 million in UST was sold via Curve Finance. Luna Foundation Guard (LFG) — supported by Terraform Labs CEO Do Kwon — issued $1.5 billion in reserves to protect the dollar peg on May 9.
In a statement, LFG declared it would loan $750 in Bitcoin (BTC) and $750 UST to market makers to defend the UST peg amid market volatility. The daily volume has hit $1.18 billion, and UST is currently in free fall.
source: TradingView
Anchor protocol, the central staking platform for UST, has seen a decline in TVL of over 20% within the past 48 hours. It is down 11% in the past 24 hours, with borrow rates also down 8% and total collateral down 10% to just $4 billion.
Source: Anchor
Do Kwon vowed to protect the dollar peg of UST and use the $1.5 billion loan to ensure UST stays within 50bps of the dollar. However,

Czytaj więcej

We współpracy z: https://cryptoslate.com/terras-ust-in-free-fall-drops-200-basis-points-against-the-dollar/