UST Stablecoin Crisis Spreads to Other Algorithmic Stablecoin Protocols
Updated: May 17, 2022
Daily Market Wrap
Crypto market cap: 1.20 trillion, up 1.79%
BTC price stands at USD 30,060, up 4.23%
ETH price stands at USD 2,058, up 0.43%
Top gainer: Maker (MKR), up 45.14%
Top loser: TerraUSD (UST), down 72.52%
News of the Day
UST stablecoin crisis spreads to other algorithmic stablecoin protocols.
Why it matters:
Other smaller algorithmic stablecoins such as FRAX, FEI, and USDN are facing the same danger during the aftermath of Terra’s UST stablecoin
Neutrino USD (USDN), the Waves blockchain’s algorithmic stablecoin, dropped below $1 U.S. dollar peg as low as 23 cents
A daily report from Crypto research firm Delphi Digital showed that USDN has the less stability during the recent market dip as its design is similar to Terra’s UST stablecoin
Crypto daily spotlight
Terra blockchain halted to prevent governance attacks due to severe $LUNA inflation.
Brief introduction: Terra is a decentralized stablecoin blockchain that uses fiat-pegged stablecoins to power price-stable global payments systems. Terra’s native token LUNA is used to stabilize the price of the protocol’s stablecoins.
Why it matters:
A tweet from Terraform Labs said the network’s validators “will coordinate” to restart the network shortly after the halt at a block height of 7603700
LUNA’s price plummeted to $0.01 at press time owing to the severely high inflation
The UST stablecoin, which has failed to recover the peg back to $1 U.S. dollar for 4 days, is still struggling to bounce back in the range of around $ 0.3
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