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3/ Anchor probably had the worst bloodbath, as it is currently the only protocol that relies on leverage. Overview of the last 24 hours here:
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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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4/ While drawdowns are painful, $UST exhibited extreme peg stability during the 60% price drop, and maintained its core solvency mandate and continues to offer 18-20% yield due to drastic falls in the utilization ratio, drawing down on its yield reserves.
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5/ To a different topic: burning the community pool
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6/ Earlier in March, I proposed a series of proposals to burn all funds in the community pool containing seigniorage from recent $UST mints:
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7/ While I had thought that a good way to burn the funds would be to mint $UST to bootstrap an insurance project called Ozone, there's been concerns from the community that such a move could result in a "double burn" - using Luna that had already been burnt to mint more stables
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8/ There's been a follow-up proposal from the community, therefore, to send the balance of the pool to a zero-ed out address immediately instead: agora.terra.money/t/proposal-to-
station.terra.money/proposal/82
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9/ While I personally believe burning Luna and getting insurance could be more productive, I believe the community should be given a fair chance to debate and vote on an important proposal with nearly a billion dollars at stake.
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10/ If you vote NO to Prop 82, the community pool will be swapped out for UST after Columbus-5, and used to bootstrap the Ozone protocol.
If you vote YES, the community pool (67M Luna) will be immediately burned.
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11/ What happens to Ozone if the community pool is burned immediately?
I will be depositing 100M UST over the first year of Ozone's creation to bootstrap the insurance pool from my personal funds.
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12/ This will be an important test of the impartiality of Terra's governance from TFL's guidance and viewpoint.
Either way, excited about the future 🌕
Very good. This is a big decision. I personally think the priority should be protecting the peg. It is the foundation upon which the Anchor and Mirror is built. Everything else is secondary.
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Double burning is bad, how about a use case for aUST, users are able to stake their aUST to OZ pool to earn that premium paid by insured (fees based reward), and u can put up the backup fund too.
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just my 2cent, i'm opposing on any *insurance* on protocol or smart contract, if technical failure occur, not only anchor would be fked, fund on ozone is fked too due to compensation, double killed.
Props to u Do, you definitely put your money where your mouth is
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Do - leaders show their true self not in easy times but in hard times. You really are the great Terran leader! 🙏 We’re happy to be building for Terra ecosystem! 🛠🌖
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Vote no, this fund can be used to spur more demand for UST in the long run.
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