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Eric Kryski 🇺🇦 🇨🇦
@ekryski
🚨 This is deep rabbit hole crypto stuff 🚨 I agree with this entire article. TL;DR There is significant probability that without major intervention the
@anchor_protocol
reserve is depleted in < 2 months. Could trigger a major de-pegging of $UST.
cryptorisks.substack.com
On Abracadabra Degenbox Strategies, dwindling Anchor Protocol Yield Reserves, and risk to Curve...
This article examines potential risks that declining yields on Anchor Protocol (on Terra) may have on Curve liquidity pools containing wrapped UST.
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Eric Kryski 🇺🇦 🇨🇦
@ekryski
Finishing up my own draft that covers some of the other implications/risks of $UST going multi-chain. Including how it *may* be able to prevent de-pegging death spiral if they move fast enough but not without it's risks...
@stablekwon
@wags
happy to chat 😬
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Eric Kryski 🇺🇦 🇨🇦
@ekryski
Look, I get using
@anchor
to bring liquidity to UST. Made lots of sense. Basically took $60M and converted it to $7-8B un-levered. We'll ignore the $2.5B in community fund. Smart.
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Eric Kryski 🇺🇦 🇨🇦
@ekryski
Now going multi-chain to be "too big to fail". Also makes tons of sense because if the on-chain swap to LUNA is the only UST redemption, during a scare it could cause a death spiral. Need to prevent that.
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