Will UST recover?

Jun 28, 2022

Hi everyone,

UST and Luna were interchangeable allowing UST holders to exchange 1 UST and mint $1 worth of Luna, and vice versa.

UST’s model:

1. (No.1) UST > $ 1 -----> there is an incentive to trade $1 worth of Luna for one UST (why? because, 1 UST is always considered to be equal to $1)

2. (No.2) UST < $ 1 -----> there is an incentive to trade 1 UST, for $1 worth of Luna (why? because, $1 worth of Luna considered to be equal to $1 (Market Price))

What happened?

(No.3) on May 8, when the price of UST began to drop substantially below one dollar, the (Luna) Foundation began converting this reserve (80,000 BTC) to UST. (May 8, 1 BTC = $32000, 80,000 BTC =$ 2.5 Billion)

then, On May 12, Luna Foundation Guard swapped 883,525,674 UST to 221,021,746 LUNA

Result: at least in my experience, what always happens is (this case): this takes some UST out of circulation, driving up the price of UST.

In short:



Will UST recover? yes!

Money is not lost. It can be found through tracing!

Jun 28, 2022

Note

Jun 28, 2022

Note