On: UST Stablecoin Loses Dollar Peg

[dragontamer]

This mistake literally killed TITAN / IRON a few months ago.

Did nobody learn from that?

[Mo3 → dragontamer]

I’ll go ahead and assume that is a rhetorical question

[dragontamer → Mo3]

Lol. Fair point.

I guess my overall question is: what did UST / LUNA do differently to try and mitigate the problem that was proven in IRON / Titan?

[Mo3 → dragontamer]

Well, depends on who you ask, but in my humble opinion they managed to do everything as bad or even worse.

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.