FatMan

Enter Abracadabra's Degenbox: a borrowing protocol where people can loop stablecoin buys. You can stake collateral to buy UST, put it into Anchor, then use your aUST to borrow more UST, put it into Anchor again... You get the drill. It's Anchor on steroids. (3/13)

To increase liquidity (by creating enticing APYs), CVX bribes in the form of SPELL rewards were distributed to people voting for the pool's gauge through Votium. Essentially, SPELL was picking up the tab for providing deeper exit liquidity to the UST pair. (4/13)

Terra influencers shilled this strategy en masse, and thousands of retail users began flooding into Degenbox to access the high yields. Although this began quickly depleting the yield reserve, threatening Anchor's long-term sustainability, Do Kwon didn't care much. (5/13)

This created incredibly thick, near-immovable liquidity near the top of the peg zone (the $0.98 to $1.00 range). In a nutshell, it would allow for someone to cash out billions of UST for MIM at a 1:1 rate without disturbing the peg - all thanks to inorganic demand. (6/13)

Maybe things work out in another universe. Maybe with an extra $2.7b in pools, UST wouldn't have depegged 30 days ago. Maybe without the constant lies and misrepresentations, retail wouldn't have lost this much. But in all of this it's hard to see any transparency. (10/13)