75 handle now... EDIT: 71 now. It's a bloodbath; people can't get out fast enough, there's no price support at all.
Does the stabilization algorithm give up after some amount of drop, or has it already liquidated its backup pool down to 0?
To make matters worse, the algorithm effectively mints new LUNA diluting the supply if the peg breaks downwards.
It’s a closed feedback loop of death right now.
Did nobody learn from that?
I guess my overall question is: what did UST / LUNA do differently to try and mitigate the problem that was proven in IRON / Titan?
Titan was backed by some percentage of USDC and Titan itself, while Luna managed to be even more abominable: Backed by BTC and Luna, ensuring full exposure to 100% of market volatility and the highest possible system leverage, and then STACKING LOANS using the reserve BTC as collateral to generate even more system leverage! It’s phenomenal.
Secondarily, you need to transfer out of LUNA (via a bridge or some other mechanism) in order to sell the LUNA. The problem is that the network is.. quite busy, and from what I can gather, bridging is taking a few minutes to go through.
I seriously considered bridging back and forth between Terra and Ethereum, buying UST on Ethereum, transferring it to Terra, trading it for LUNA, transferring the LUNA back, and finally selling the LUNA for more UST. The potential delays in bridging expose me to more risk than I would have expected.
For a stablecoin, the only stable points are 1 and 0.
edit: down to $0.799