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Do Kwon 🌕
@stablekwon
Probably the most retarded thread ive read this decade. Silence is a perfectly acceptable option if stupid. Billionaires in my following, go ahead, see what happens
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FreddieRaynolds
@FreddieRaynolds
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A few weeks ago I responded to @tbr90’s tweet with a brief outline of how a wealthy attacker could not only break @terra_money but profit heavily doing it with a Soros style Black Wednesday attack. Below I provide a detailed breadown...~$1B capital needed. twitter.com/tbr90/status/1
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Graye Williams
@GrayeWilliams
It makes irrational and incorrect suppositions while ignoring the actual systems in place that make what the OP proposed an impossibility. Not an improbability, an impossibility. From Archer: “What did you not comprehend about this?” “The basic premise, obviously .”
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Do Kwon 🌕
@stablekwon
1/ Alright, I'll bite - $UST is just a derivative of $LUNA - building $UST inventory via $LUNA as the intermediary has strictly worse slippage costs. The example you posted is not only impossible (will explain shortly) but is fundamentally more expensive than just shorting
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Do Kwon 🌕
@stablekwon
2/ Demonstrative example: Buying 100M worth of Luna (slippage cost) --> Selling 100M worth of Luna (slippage cost) Your PnL in steps 1,3 are disingenuous as price up as you buy 100M worth Expectation of 30% gain while *selling Luna* doesn't even make sense Bullish selling?
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Do Kwon 🌕
@stablekwon
3/ Step 2 betrays special ignorance - twitter.com/FreddieRaynold 1. When you mint $UST, you need to burn $LUNA - so the idea that you can take a $100k Luna purchase to mint 500M worth of $UST doesnt make sense
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FreddieRaynolds
@FreddieRaynolds
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2. Purchase $100k of $LUNA and immediately withdraw from exchange and swap to $UST using the Terra seigniorage mechanism. Fee is 0.5%. Repeat 10,000 times (use a bot) so you accumulate 500M UST for ~$502.5M. docs.terra.money/Reference/Terr PnL impact: -$2.5M Net PnL: -$2.5M
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Do Kwon 🌕
@stablekwon
5/ But most importantly, if you have strong faith in your strategy, put up or shut up. There's truckloads of billions in crypto, and if your strategy made sense there would be no shortage of desks willing to put up the capital to help you do it No takers? Speaks volumes
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Do Kwon 🌕
@stablekwon
Probably the worst way to execute a short - widening the trade window to multiple days and assuming all the Luna beta risk If you don't understand why this doesn't make sense idk...
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