Conversation

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
Quote Tweet
FreddieRaynolds
@FreddieRaynolds
·
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
Show this thread
501
2,477
NFT profile picture
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 .”
7
15
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
6
122
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?
3
44
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
Quote Tweet
FreddieRaynolds
@FreddieRaynolds
·
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
Show this thread
2
38
Do Kwon 🌕
@stablekwon
2. Even if you are implying this can be done recursively, the fee to swap luna to terra is not 0.5% - it *starts* at 0.5%. It's a virtual AMM - as you execute more trades in 1 direction, the cost goes up quadratically
2
32