Here’s what happened to UST and LUNA in 2 minutes

Merunas Grincalaitis
2 min readMay 11, 2022
It was great while it lasted

As you have probably noticed, UST, one of the largest stablecoins lost it’s peg and is trading far below the $1 per UST promised. In theory it shouldn’t be possible but the system that maintains that value was terribly flawed…

You see, UST is backed by LUNA. Say UST drop to $0.9 per UST, then an algorithm will pickup that drop and burn UST to buy LUNA. So the program changes UST…

Merunas Grincalaitis

Blockchain expert. Join my email list here to receive new articles every few months

Recommended from Medium


See more recommendations