1/ Crypto markets experienced extreme volatility over the last 24 hours, with significant drawdowns in crypto asset prices across the board.
The excessive volatility induced stress on Anchor, causing several collateral effects.
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2/ Beginning around 9:36 PM KST, the LUNA price had retraced to roughly 9.8 UST.
The sharp decline in the price of LUNA induced many Anchor users with open borrowing positions to access the Anchor web app to pay down their loans and avoid liquidation.
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3/ Anchor’s Cloudflare dashboard reported 2.58 million requests in 30 mins to Anchor Mantle, creating resource starvation on Mantle.
Anchor Mantle nodes were overloaded, unable to accept new requests, and became unresponsive, causing an unresponsive Anchor web app for 30 mins.
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4/ Within 30 mins, a fix was deployed to the Anchor_Mantle cluster to replenish its resources.
While still slow at the time, the web app was presenting the correct numbers as the smart contracts on-chain were working correctly.
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5/ LUNA’s sharp price decline triggered 4,000+ liquidation transactions in that time span.
Out of the 9,542 outstanding loan positions on Anchor, at least 800 loans were at risk of liquidation.
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6/ The result was massive network congestion, where transactions were no longer being accepted by the RPC nodes.
Congestion-induced side effects included:
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1. TX broadcasts resulting in timeout impacted oracle feeds leading to missing votes, which turned off the on-chain swap feature due to invalid prices.
2. An Oracle Feeder transaction that was accepted by the network triggered another wave of liquidation transactions.
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Yes - when swaps went down that prevented traders from being able to close arb loops to stabilize UST - thats when most of the peg slippage occurred
In fairness didnt do any worse than usdt or usdc.
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