Even though we know better, we stubbornly hold out hope that most of you are socially functional, well-adjusted human beings who spend your weekends with family and friends.
If so, you may have completely missed the bulk of the attack on $UST.
Curve Finance @CurveFinance
News of Curve Wars 🌈⚔️
Yesterday, someone started selling UST en masse, so it started to depeg. However, that was met with a great resistance, so the peg was restored. To get enough USD for that, a lot of ETH and stETH were sold also.
Aftermath? High Curve trading vol (>uni3)
5:17 AM · May 8, 2022
146 Reposts · 771 Likes
Seems like this is what happened:
-Massive $UST sell-off on Curve
-Rumors spreading quickly on Twitter
-Leads to a $2B withdrawal of $UST on Anchor
-Price of $LUNA tanks
- $UST depeg to 0.987
-Peg straight up to 0.995 after Do Kwon tweet
-Jump selling assets to buy $UST
9:06 AM · May 8, 2022
378 Reposts · 2.09K Likes
Whole CT tonight $UST
11:09 PM · May 7, 2022
14 Reposts · 184 Likes
Over the weekend, the UST-3Pool abruptly suffered several waves of attack.
that's hardly a depeg come on
10:25 PM · May 7, 2022
4 Reposts · 23 Likes
Pulling the peg to $0.99 may hardly sound dramatic. The spectacle came from the raw volume of capital deployed to fight this war of inches. This penny off sale would come at the cost of billions of dollars on an otherwise sleepy weekend.
Some people may prefer the TardFi paradigm where money is illiquid on weekends. Today, DeFi permits multi-billion dollar skirmishes while banks are closed.
FreddieRaynolds @FreddieRaynolds
About $600M or 4% of 's deposits withdrawn over past 24hrs as well.
25bp UST depeg on Binance today ($215mm 24hr volume) is indicative of Binance being irregularly long UST
Why?
3AC / Genesis likely swapped their $1.5bn UST on Binance over the last 2-3 wks
April 19/20 had over $800mm in volume alone
Strategy was to avoid imbalanced CRV pools https://t.co/DaLasw4hEW
6:32 PM · May 7, 2022
5 Reposts · 32 Likes
Massive withdrawals from Anchor Protocol past hour, frequency increasing
There's only $300MM left of exit liquidity left on pool 53 before BTC peg
Hope this isn't how it starts -- on a low liquidity weekend
9:21 PM · May 7, 2022
257 Reposts · 1.57K Likes
~20% of Anchor deposits have now been withdrawn.
That's approximately $2.8bn
$UST's peg is holding extremely well if you consider how large that outflow is.
4:49 PM · May 8, 2022
48 Reposts · 509 Likes
For a period, this would stress available supply.
10:05 PM · May 7, 2022
52 Reposts · 628 Likes
The first wave hit as much of East Asia was asleep. The Terra community quickly sprang to action.
/peg_defend
10:12 PM · May 7, 2022
5 Reposts · 73 Likes
Peg Defenders
Brief recap of cpl big wallets defending UST peg onchain
1/ 0x6b671b51258db0316dd89bc0075d6113488be5e8
Bridged ~75K ETH from Anchor (terra1885dgdvn5u8sjfaefvr39arssaxgqmd29ht0aa)
20K sent to Binance, w/ remainder being sold to USDT in 1K clips over cpl hours
10:22 AM · May 9, 2022
8 Reposts · 57 Likes
Jump Crypto team moved quickly to initially restore the peg.
Jump Plunge Protection Team first clip arriving?
11:01 PM · May 7, 2022
88 Reposts · 750 Likes
Looks like Jump just *jumped* in with a $216mn deposit to stabalize the $UST + 3CRV pool.
Jump Plunge Protection Team first clip arriving?
https://t.co/jWa8pzZOfi https://t.co/YV7jC9KIuM
11:13 PM · May 7, 2022
3 Reposts · 18 Likes
However the onslaught would prove it was not just a quick blip, but a sustained siege. The entire weekend, and even up to publication time, this back-and-forth has continued.
Curve UST-3pool is still being drained. Nearing levels yesterday where the ETH sells started.
Close to needing another fill-up.
10:21 AM · May 8, 2022
43 Reposts · 336 Likes
Anonymous 🌖 @crypto_mystery
Morning update:
We are again seeing a coordinated attack on $UST. Massive 285m $UST dump on Curve and Binance by a single player followed by massive shorts on and hundreds of Twitter posts. So far, not a really successful attempt as the peg is almost back at 1 dollar👌
6:36 AM · May 8, 2022
99 Reposts · 639 Likes
Even as we hit publish, the dance continues. The peg erodes, the peg restores. Rinse. Repeat. In all, the peg held above $0.99 almost entirely throughout, but at a cost of billions of dollarcoins.
The peg holding is thanks heavily to the mechanics of Curve’s Stableswap Invariant . This bespoke formula is able to keep the peg even though the pool itself has grown imbalanced, ranging between 60% to 70% UST since the chaos erupted.
The sudden skirmish revives debate on $UST’s tokenomics.
UST is fully backed, 20% by BTC and 80% by Do's giant ego.
10:06 PM · May 7, 2022
123 Reposts · 2.3K Likes
Famously, Terra has been buying up BTC to help defend the peg.
Only $531m of exit liquidity on the Curve $UST wormhole pool, but $13.8b on deposit at Anchor. Even a small fraction leaving is enough to put serious pressure on the peg! More importantly, what happens with $BTC price if LFG has to use reserve to defend UST?!
$LUNA
@DegenSpartan This is because the price of $LUNA is down (the collateral value which is a part of the Anchor TVL decreases).
The more important metric is the $UST deposit TVL in Anchor.
ATH was $14.09B. Down to $13.85B (-$0.24B) now. https://t.co/zymH031rbA
2:30 PM · May 7, 2022
19 Reposts · 86 Likes
The choice of notoriously volatile Bitcoin as a backing has prompted some debate. Bitcoin has been relatively stable compared with other assets amidst the broader bloodbath in the markets, but still fallen steadily for weeks. When the entire market is in freefall, there’s almost nowhere safe to turn (although the dollar has been curiously strong throughout the mess).
Terra’s cache of Bitcoin initially appeared to skate through the events intact.
Broski I dont need to sell btc to come up with 300M
Dont think any action is needed though, usually these imbalances flip positive soon after peg fud passes historically
11:33 PM · May 7, 2022
96 Reposts · 1.36K Likes
A day later, the LFG Council would subsequently vote to lend $750MM worth of BTC, with another $750MM $UST earmarked to rebuy BTC.
1/ The LFG Council just voted to deploy 1.5B in capital (0.75B in BTC, 0.75B in UST) to allay market concerns around UST. Some more context on why and how:
LFG | Luna Foundation Guard @LFG_org
1/ Over the past several days, market volatility across crypto assets has been significant.
The market turmoil is also reflected by the past week's uncertain macro conditions across legacy asset classes.
5:17 AM · May 9, 2022
445 Reposts · 2.01K Likes
LFG | Luna Foundation Guard @LFG_org
4/ As a result, the LFG Council has voted to execute the following:
- Loan $750M worth of BTC to OTC trading firms to help protect the UST peg.
- Loan 750M UST to accumulate BTC as market conditions normalize.
3:56 AM · May 9, 2022
93 Reposts · 719 Likes
For his part, Do would have a field day with 💩-posting throughout the theatrics.
So, is this $UST depeg in the room with us right now?
No?
I prescribe 24 hours of pegging over the next 7 days
5:41 AM · May 8, 2022
441 Reposts · 4.31K Likes
Imajin freaking out about 9 fig imbalance on a chain foreign to UST
Iamjin that
11:02 PM · May 7, 2022
55 Reposts · 1.31K Likes
I’m up - amusing morning
Anon, you could listen to CT influensooors about UST depegging for the 69th time
Or you could remember they’re all now poor, and go for a run instead
Wyd
11:01 PM · May 7, 2022
483 Reposts · 4.83K Likes
Occasionally taking a short break to reflect on the nature of parenting.
Btw, if yall girls are gonna fud, try to do it during my waking hours pls
Terra chain is 24/7, but I am a new father for cryin out loud
11:07 PM · May 7, 2022
119 Reposts · 2.74K Likes
I wonder what baby Luna will think about my shitposts 18 years later
3:02 AM · May 8, 2022
112 Reposts · 3.45K Likes
Do’s army of $LUNA-tics stayed loyal and fought hard to hold the peg.
White Whale @WhiteWhaleTerra
Was today the first major coordinated attack on $UST? Maybe.
Will it be the last?
Probably not.
Will lunatics continue to defend the peg no matter who or what comes at us?
Damn right we will.
Caetano Manfrini 🔺🌖 @CaetanoManfrini
today's attack on Terra-Luna-UST was deliberate and coordinated. Massive 285m UST dump on Curve and Binance by a single player followed by massive shorts on Luna and hundreds of twitter posts. Pure staging. The project is bothering someone. 🌝 on the right path!
4:34 AM · May 8, 2022
38 Reposts · 389 Likes
"I told you guys $LUNA and $UST is going to zero!!! I'm so glad I've been fading the entire run-up and 20% stablecoin yields the past 12-18 months."
*tweets at $0.99 UST*
11:47 PM · May 7, 2022
156 Reposts · 1.58K Likes
./kevinsekniqi 🔺 good vibes only @kevinsekniqi
Imagine fading Do. I’m sorry, I could never.
11:32 PM · May 7, 2022
32 Reposts · 364 Likes
Indeed, it’s not even the worst depeg threat in $UST history. $UST occasionally goes through massive trials, but to date has always held its peg.
Tundra V1 🌖 (Ψ,Ψ) @tundra_v1
"It's all over bro"
Breh. I lived thru May 21'
This is a sneeze to me.
$UST $LUNA
11:10 PM · May 7, 2022
26 Reposts · 341 Likes
goodgirlgonecrypto.onlymarketbuy @gggonecrypto
ser will top up reserve when it's at low 50m $UST because he's a chad with big pepe energy and will show CT who is the boss. As for $UST wormhole imbalance? Ezpz ser Do will max bribe it with Terra $CVX stack to restore the imbalance if any lel
4:08 PM · May 7, 2022
5 Reposts · 20 Likes
Yet several other dollarcoins don’t ever suffer such frequent incidents. If you like your stablecoins stable, you may consider other alternatives with less yield and correspondingly fewer headaches.
CryptoCondom @crypto_condom
People are worried about the sustainability of the Terra Luna system & are leaving bc of ⬇️APR soon. Last night was a sm bank run that showed their 20% yield was unsustainable…to the tune of $100s of millions in losses from Jump & Do Kwon.
Will it kill $LUNA?
👇
11:35 AM · May 8, 2022
3 Reposts · 21 Likes
Dan Octavian 🏴☠️ @danoctavian_
This is what it takes to keep the $UST peg.
Sure cool it’s still pegged…
But there’s transparent designs with well defined on-chain rules in $Frax $Dai $mai
Not some script throwing ETH on the market everytime it’s failing.
This address is swapping 1,000 ETH to USDT to UST every few minutes. ~30,000 swapped.
Plus a 20,000 ETH transfer to Binance.
https://t.co/BCcJiuKiHH
11:09 AM · May 8, 2022
4 Reposts · 13 Likes
The entire event had spillover effects across DeFi, most notably on $MIM is historically intertwined with $UST.
MIM is 40% backed by UST, though.
10:19 PM · May 7, 2022
5 Reposts · 34 Likes
αlex | αlex and Ωmega @alexandomega
$UST will most probably be fine, right? ...r-r-right?
10:23 PM · May 7, 2022
39 Reposts · 461 Likes
At the onset of the skirmish, the Curve UST/MIM pool would almost instantly flip its imbalance, from 80-20 MIM/UST to the opposite.
$MIM pool looks really bad tho.
Backing MIM with UST probably not such a good idea at this stage.
3:57 PM · May 8, 2022
2 Reposts · 22 Likes
Coin-flip which is the less unstable decentralized coin? https://t.co/XmOeTpZmI9
Curve Whale Watching @CurveSwaps
🚀Swap 8,713,733 $UST to 8,708,983 $MIM ($8,542,856)
LP & veCRV Holder Fee: $3,417
💰Tx Hash: https://t.co/Ielp10u55Y 🦙🦙🦙
10:16 PM · May 7, 2022
1 Repost · 12 Likes
Throughout the incident, rates for $UST also went crazy on AAVE, though it has since settled down to low double digits.
UST borrow rate on AAVE. Folks betting on a depeg
10:32 PM · May 7, 2022
4 Reposts · 17 Likes
FreddieRaynolds @FreddieRaynolds
88% APY for $UST on (100% utilization)
10:50 PM · May 7, 2022
32 Reposts · 359 Likes
Even MakerDAO has taken notice of the effect of weekend turbulence on DAI .
Even as the war rages, the identities of the assailant remains unclear (drop a note in comments if you’ve seen otherwise). Most commenters seem to agree the attack appears to be coordinated, not an organic panic.
Caetano Manfrini 🔺🌖 @CaetanoManfrini
today's attack on Terra-Luna-UST was deliberate and coordinated. Massive 285m UST dump on Curve and Binance by a single player followed by massive shorts on Luna and hundreds of twitter posts. Pure staging. The project is bothering someone. 🌝 on the right path!
3:41 AM · May 8, 2022
898 Reposts · 5.57K Likes
Courtesy the nature of blockchains, all the addresses involved are traceable.
ElBarto_Crypto @ElBarto_Crypto
Hmm. Wallet mints $175mn $UST yesterday, transfers to another account about 10 mins before $85mn Curve transaction. Then sells $UST in $25mn blocks about 30 mins after Curve transaction
etherscan.io
Address 0xf642ea51c645c48196d9831a5937e95b0e9b4f7f | Etherscan
1:47 PM · May 8, 2022
5 Likes
This address is swapping 1,000 ETH to USDT to UST every few minutes. ~30,000 swapped.
Plus a 20,000 ETH transfer to Binance.
3:09 AM · May 8, 2022
215 Reposts · 1.49K Likes
In some cases, the trail led right back to the source.
UST fiasco is very fishy.
- Terraform Labs removed $150m of UST liquidity from Curve yesterday
- 1 minute later, a freshly funded address bridged $84m of UST to Ethereum (Initiated bridging before TFL removed liquidity)
- 4 min later, it dumped the UST, triggering the sell-off
2:17 PM · May 8, 2022
325 Reposts · 2.03K Likes
- We removed 150M UST from Curve to get ready to deploy into 4pool next week
- 84M dump not us - lmk if you find out who
- After the imbalances started to happen, we removed 100M UST to lessen the imbalance
Obv TFL has no incentive to depeg UST
2:55 PM · May 8, 2022
154 Reposts · 1.71K Likes
Alameda for their part have denied involvement.
Sam Trabucco @AlamedaTrabucco
Starting to see a little chatter about this, so just to quell it before it gets worse, Alameda hasn't been selling UST and doesn't have any particular plans to.
Not investment advice, etc. etc.
7:18 PM · May 8, 2022
31 Reposts · 747 Likes
At least one participant in the skirmish eagerly doxxed himself.
H.E. Justin Sun 🅣🌞🇬🇩 @justinsuntron
I am buying . 👀
7:11 AM · May 8, 2022
284 Reposts · 5.76K Likes
Crypto News UK @CryptoNewsUK1
’s Justin Sun Buys $1M in $UST in What He Calls a ‘Secret Plan’ For the , Sun has not elaborated on his plan for the purchased UST. However crypto-twitter community members suggested he might use it as a reserve for Tron’s $USDD stablecoin.
en.ethereumworldnews.com
Tron’s Justin Sun Buys $1M in UST in What He Calls a ‘Secret Plan’ For the Stablecoin - Ethereum World News
9:30 PM · May 8, 2022
1 Like
Given that a million dollar $UST buy is a drop in the bucket in the billion dollar battle, His Excellency must have one heckuva “secret plan.”
Another known actor capitalizing on the chaos appeared to be moving to keep his funds safu.
Sifu dumping $UST for $MIM 👀👀
Has another 50m UST on deposit in Abra for a 31m MIM borrow....
UST now trading at $0.99 on Curve
⚪ Swapped $10M in $UST for $MIM on 0x ✖
🐋 ($38.4M) - sifu.eth (0x5DD596)
https://t.co/HCzWhb5eFM
5:50 AM · May 9, 2022
7 Reposts · 35 Likes
As of publication, the activity looks to be continuing. If you want to follow along in realtime, there’s a handful of sources we’d recommend.
We posted a few charts throughout this article. These were generated manually using a combination of Brownie, Alchemy, and Jupyter Labs at a resolution of 10 blocks. An upcoming Brownie tutorial will teach you how to run these yourselves if you are curious.
If you are impatient, or for some reason reluctant to code in a new financial system that greatly rewards this skill, then we’ll point you to a few great web resources.
The wonderful Llama Airforce has added a tab to follow Curve pool peg history:
In light of this weekend's depeg event benny asked me to add a page with graphs showing historical peg values. I any% speedran this in less than 2 hours at night, so it's a bit janky. Now you can see daily snapshots of historic peg values of mainnet pools.
10:56 PM · May 8, 2022
6 Reposts · 62 Likes
Additionally, a Dune Analytics dashboard has been set up to keep an eye on the events:
Sébastien Derivaux (🥩🏦💵) @SebVentures
For those who want to follow the
situation with a dashboard (hourly basis).
Curve query forked from 🙏
4:35 PM · May 8, 2022
8 Reposts · 44 Likes
Not financial advice as always, but how can you (as a shrimp) profit from this?
If you suspect $UST will repeg, you can use the Curve pools to buy up cheap UST whenever the peg drops, and then sell it off for market value when the pool repegs. This tx , for instance, could earn a cool million for the low upfront price of $50MM.
In truth, betting one direction or the other as a shrimp can be tough. Depegs by just a penny can require a boatload of capital to offset gas fees. Life is always better for whales.
Arguably, the easiest way for shrimp to benefit is simply holding $CRV (or related flywheel assets). Throughout the misadventures, Curve enjoyed a $2.7 billion dollar day in trading, the fees from which get distributed to all holders of veCRV.
Curve Finance @CurveFinance
Upd:
Daily volume: $2,732,840,587
Curve Finance @CurveFinance
Can we have more Curve Warz plz? https://t.co/dX4pXxfOAK
3:43 PM · May 8, 2022
13 Reposts · 110 Likes
Colorised:
12:19 AM · May 8, 2022
9 Reposts · 28 Likes
CryptoCondom @crypto_condom
Lockers of ( $veCRV ) are going to enjoy 🥩 rather than 🍜ramen this week thanks to UST swap fees. https://t.co/IWCTT4hQ4I
$0.69B daily volume in $UST pool alone 🤤 https://t.co/iBfD3Kkd9A
11:50 PM · May 7, 2022
8 Reposts · 53 Likes
Whatever happens in crypto or , the one constant is veCRV/cvxCRV holders printing profits from Curve trading fees.
$CRV 👑
4:02 AM · May 8, 2022
13 Reposts · 62 Likes
Curve pools are proving instrumental to bootstrapping liquidity at the scale that big players require. Flywheelers can profit not just off of trading fees, but via the bribes spent to keep these pools liquid.
goodgirlgonecrypto.onlymarketbuy @gggonecrypto
The recent $UST bank run once again has proven how irreplaceable is for new stablecoins that want to establish market shares in . Imajin the smell if $UST used Unicuck v3 with its concentrated liquidity meme, the peg would have been 50c ser lel
4:17 PM · May 8, 2022
9 Reposts · 53 Likes
Seems Do Kwon is going to need to bribe 4Pool pretty hard. $CVX lockers rejoicing.
$LUNA $FXS
1:02 AM · May 8, 2022
4 Reposts · 38 Likes
Unclear - whereever there might happen to be demand spikes, but Curve will likely be always in the included set
5:26 AM · May 9, 2022
2 Reposts · 62 Likes
It’s perhaps for this reason that the $CRV token has held up relatively strongly amidst a sea of red ink.
CryptoCondom @crypto_condom
Hmmmm.... $CRV gud coin? 🍌
12:19 PM · May 8, 2022
8 Reposts · 47 Likes
CryptoCondom @crypto_condom
I bought more $CRV at $2.19 tonight.
- is oversold
- Massive 💰fees are coming from stablecoin volatility
- $veCRV bribes are ⬆️
- A crvUSD stablecoin is coming 👀
- 15% emissions ⬇️ in Aug
- Billionaires like need $UST & $USDD liquidity
12:07 AM · May 8, 2022
20 Reposts · 194 Likes
Crypto Michael - The Last Bull @MichaelXBT
$CRV gives 0 shits about this $BTC dump. The beast will not be held down 😈
10:48 AM · May 8, 2022
17 Reposts · 120 Likes
You will all end up buying/accumulating $CRV and $CVX and you will like it.
8:09 PM · May 8, 2022
12 Reposts · 114 Likes
Disclaimers ! Friday’s interview with Curve Core Dev Charlie is now unlocked for all.
