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Need some bigbrain to tell me why UST stability tax on MsgSends increasing exponentially with UST depeg wouldn't have stopped a bank run. If as depeg increases the network claws back more and more UST wouldn't this stop a spiral? $LUNA $UST

@terra_money

140

Replying to

and

With UST exported crosschain and highly liquid on CEXs native terra chain was just not the dominant source of liquidity for ust - taxes would not have been charged outside of terra chain

1:40 PM · May 27, 2022Twitter for iPhone

Replying to

and

But vast majority of UST was on chain in anchor. A large tax rate on that UST fleeing to bridges or CEXes surely ensures a "slow" wind down and much less panic. If fleeing continued the network could claw back a large portion without minting?

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@hedgefunder01

May 27

Tbh I think in the panic no tax would have been sufficient to stop the bank run. Economic rationalism went out the window

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@hedgefunder01

· May 26

Replying to @THORChain

Slip-based fee didn’t work at all with UST. 1. Wide spread meant arbing UST was inefficient 2. People were happy paying 30% spread to exit UST anyway 3. No one was willing to buy LUNA to receive those 30% fees During panic economic rationalism goes out the window