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Low and microcap gems to look at now that the crypto bullrun is kicking off.
J.A.R.V.I.S. tech out of IRON MAN is almost here. EMAD MOSTAQUE explains the future of A.I. gadgets!
Schadenfreude is our best friend to keep on hodling in a bear market and Jealousy is our worst enemy in a bull market.
Controversial: USDT is fine and this is why....
If more stablecoins get rekt, it will be a call for stablecoin regulation and a huge priority concern to adapt CBDCs for “your safety”
Introducing the untamed Bitcoin "IRON BULL"
Iron | Presale ended and now Iron listed on Pancakeswap | Audited Contract | Huge Marketing Campaign for Launch | Staking Pools | Liquidity locked for 200 years |
Why I think Luna and Ust will not end well ( Iron Finance Vibes)
IRON CAT - protector of BSC \ It's coming stealthy and it will rise \ Low MCap moonshot \ Dev with background \ Sick graphics \ About to send this to the moon \ LP locked upon launch \
Iron Cheebs is here! | Just Launched | low mc | Marketing ramping soon | Hidden gem!! | Music Streaming Service In Dev|Fast track!
Iron Cheebs is here! | launching in 10 minutes with low mc | Marketing ramping soon | Hidden gem!! | Music Streaming Service In Dev|Fast track!
Iron Cheebs is here! | launching with low mc | Marketing ramping soon | Hidden gem!! | Music Streaming Service In Dev|Fast track!
Let's talk best strategy for going bankless
Mentions
Lol honestly my indicators are Reddit threads, the second I start seeing “BROO YOLO INTO RIPPLETIDDY”, “HODL IRON DIAMOND HANDZ YO” it’s time for me to take a lil profit and close the exchanges for a few months
I did really good on $ML. But I sold a third of my bag after only 5x. I had 120k ML I purchased at $.025. Still have alot but I wish I hadn't sold any. I did really well with $IRON too. Not quite as good but still really well. Check my new post: low cap gems pt. 2. I will do part 3 next month. I'm still building positions in the part 3 gems. I have my stack of $CELL already so I can drop that one for you.
@KPTA-IRON no. ETH by now is a huge and thriving plattform for so many coins, projects, dApps etc. ETH is a huge network on top of which a huge segment of crypto is built. This is not shit like the others. It is the core of the smart contract-blockchain space.
The privacy project I think has the most potential for gains is $IRON. Thats the one I hold. Im well in profit and i have not taken any profits on it yet.
Not familiar with dafi, i will look into that one. Chart looks abysmal at this point tho. My expectation for IRON is that it will exceed 1bil marketcap and move into top 100 at some point in this bull. I will start thinking about taking profits then.
USDT only hold value based on the promise that if you take it back to Tether, they will destroy it and give you USD. The problem is that because we know that this tiny overseas company run by another tiny overseas company doesn't really have 85 billion, if there were ever a run on USDT, the value would collapse. Similarly to how IRON collapsed when TITAN did. The difference with USDT is that a lot of exchanges use USDT to allow people to trade in dollar equivalents, so chances are the collapse of USDT would have a domino effect on a bunch of exchanges, while dragging down the prices of BTC with it, particularly when exchanges are found to be running fractional reserves too (which they definitely do).
It wasn't really a rug, it was more of a death spiral. The IRON stable was partially collateralized and TWAP oracles couldn't keep up with the redemptions so it did a LUNA before LUNA.
*Make way for the IRON SAUAGE!* -- Frank Zappa, "Joe's Garage."
**Round 43 stats for KPTA-IRON** - Total Karma: `22` karma - Ratio: `0.8728` Based on these stats, `u/KPTA-IRON` should receive an estimated **~19 MOON** on distribution day. ^(*estimate based on the snapshot data and is subject to change.*) --- ^(I am a bot 🤖)
Problem is I don't know if the coins I'm mining are "shitcoins" or not. ETH was like the only coin that had a proven track record, the other coins I've been mining since ETH POS have been questionable... \-RVN Maybe \-ERG Maybe \-IRON Maybe \-NEOXA Maybe \-ETC Maybe not. I just change it up whichever coin is profitable during the time.
I miss the days when Mark Cuban and I were losing money farming TITAN with our artificially pegged stablecoin IRON.
Things I saw mentioned recently in relation to mining and miners getting interested have been IronFish (IRON), and Metal Blockchain (though that might be some other part of that network like Proton or something). I'm not a miner though, so can't really give qualitative comment.
LUNA/UST is the obvious answer, but it's funny how that fiasco unfolded pretty much in the same way TITAN/IRON did.
I used IRON PLATE and Plywood 😁
This is an IRON bar? Lmfao
now you’re using high school logic. LUNA/UST, 3AC, Celsius, Voyager, BlockFi, FTX, FTX-US, Alameda, IRON/TITAN all blew up in the last year or so. so over the last year or two, please tell me: 1. how many stocks in the Nasdaq/NYSE were uncovered to be actual ponzi schemes? 2. how many hedge funds in the US were stealing from investors? 3. how many banks have went insolvent from re-hypothicating funds?
I profitted around 1k from IRON, realised something fishy was going on before the crash
Not IRON and TerraUsd
Currently sitting here reconciling my tax from around 16th June 2021 which was when TITAN collapsed and like me and many others, Mark Cuban also lost big time. The algo-stable that it supported IRON is still below peg and despite being a warning to us all about the prospect of an eventual collapse with LUNA/UST, well I guess there's a lesson in there somewhere. Anyway, hindsight is 20/20 eh
If you're looking for a great new project to explore, check out Iron Fish dot Network! Its a Layer 1 blockchain aimed to become the universal privacy layer for all of web3. Using zero-knowledge proofs (zk-SNARKs) and the highest industry standards for encryption, a true SSL layer for all blockchains. Iron Fish has received $27.7 Million in Series A funding from a16z, Sequoia, Electric Capital, Elad Gil, among few others. There are a few mining pools using GPU to mine $IRON, and you can join them or even use a CPU to earn testnet points. Mainnet coming soon, roadmap on the website. :)
He is the same guy that invested in IRON finance… the ponzi-scam with a really strange algoritmic stable coin.
The other stable coin that failed, like IRON or TITAN, already repegged... the problem is, he can't and don't want...
In case of LUNA, it wasn't obvious. Anchor was generating revenue (around 3%-6%), and the 20% rewards were made to look like VC-funded incentives for early adopters. There were plans to reduce the yield over time and make it sustainable. They were also buying "reserves" to back up the peg in case of a depeg event (why those reserves were in volatile assets rather than USD was def a red flag). UST had become the third largest stable, and there were ~$40B in the ecosystem, which made it seem like it was trustworthy and too big to fail. Big names like Novogratz and CZ were invested in it. Expectation was that during a bear market, more people would go into stables (UST) and stake for 20% returns. (a bank run happened instead) Other algo stables like IRON and FRAX had survived depeg events, and UST had also survived the May 2021 crash and the Wonderland fiasco. UST being much bigger felt like it could survive further crashes too.
IRON MIKE: >Everybody's got a plan until they get punched in the mouth
IRON was bigger than squid.
You are clearly brain dead. I never claimed to be a “specialist” - you pulled it out of your ass. I knew about UST and its pegging mechanism and had a look at other smaller algo stables like IRON and FRAX that had survived major depegging events. UST being much bigger seemed to be more secure. That, and all the othere reserves they were building. I knew the risk and put only my profits there. Feels bad to have lost money, and I’m back to being super risk-averse at the moment, but I’m still in the green since I got into crypto last year. You should take your head out of your ass and smell the fresh air and look around for some time.
After the IRON/TITAN and now UST/Luna algostable coin fiasco... I'm not touching these anymore with a mile-long pole. Crudely put, same shit...different smell. Once bitten, twice shy.
Honestly I kinda like my second idea much better too. I was thinking about it a bit more and even if USDD depegs and then repegs TRX will most likely still be lower after the repeg just because there's no way around it: TRX will get minted and diluted when USDD is below $1. It seems like that the whole nature of minting and burning like this actually lowers the risk of the trade, and TRX doesn't need to hyperinflate and go to 0 for the trade to be profitable. Its kind of boggling my mind a little bit because it seems to me traders should be wise to this sort of thing now after IRON/TITAN and UST/LUNA. As soon as traders see a system like this depegging now why would they not all pile into it and 'push over the jenga tower?'
>Confidently wrong - that’s what you are. Ok. I've got few words describing what you are but I'll keep it to myself. >UST was NOT a collateralized coin, it was an algorithmic coin. LUNA was NOT used as a collateral for it, but burned or minted to keep the peg. UST and luna were just good example i provided so maybe even most stubborn mined could grasp the idea of what us wrong with calling something backed when it isn't. Collateralized is not backed either due to natural volatility of the asset and general definition. >Algo stables are known to have a death spiral vulnerability. IRON and FRAX and DEI are other examples of algo stables. >DAI and MIM are examples of overcollateralized stables. Nicely unnecessary lecture but at least you make an effort. >USDC and BUSD are collateralized stables with collateral being actual dollars. Not fully, not proven and that makes it unbacked. >Go read a bit before you go around acting like a smartass. I'm much smarter than you. Go buy some Luna.
Confidently wrong - that’s what you are. UST was NOT a collateralized coin, it was an algorithmic coin. LUNA was NOT used as a collateral for it, but burned or minted to keep rhe peg. Algo stables are known to have a death spiral vulnerability. IRON and FRAX and DEI are other examples of algo stables. DAI and MIM are examples of overcollateralized stables. USDC and BUSD are collateralized stables with collateral being actual dollars. Go read a bit before you ho around acting like a smartass.
The VCs took a fucking beating on UST. Jump capital's crypto division is being considered for dissolution because the beating they took on LUNA. Galaxy Digital got fucked as well, along with Three Arrows. The story you've got is, quite frankly, wrong, and I say this as someone who's been arguing against UST and LUNA since I watched Iron.finance go down in flames. Here's the thing, UST went live around the same time as IRON did. They pursued similar market space and design. When IRON went down and lit $2 billion on fire in the process, Terra took notes, and made changes to try and mitigate the risk. There was a theory that a strategic reserve would allow them to keep a dip from turning into a spiral. Turns out they were wrong. Further complicating things is the fact that you can't just turn off an ecosystem the size of what Terra was at the time. A billion dollar ecosystem tries to liquidate, and it's going to be worth substantially less than a billion by the end of the process. So if you think you've got an idea for how to not fail the way those other guys failed, and you've got the choice of trying to implement that idea, or quit and light hundreds of millions of dollars on fire in the process, most people try something to keep the ship from sinking.
Honestly it’s weird that UST crashed so hard. I looked at other algo stables before putting money in UST. Mach smaller coins like FRAX and IRON survived catastrophic depeg events. UST was much higher market cap - #3 stablecoin! It was blessed by the likes of CZ and Novogratz. It had a great ecosystem with Mirror Protocol, Spectrum Protocol, Aperture Finance, White Whale, etc. They were collecting other reserves to back it up - mostly BTC. It still blows my mind that it’s still so badly depegged.
I have put all my UST holdings in my Terra Wallet. That makes me eligible for the airdrop, right? Still hoping I can salvage some value from my “stables”. 😫 Lower marketcap algo stables like FRAX and IRON regained peg over time, but UST looks like shit despite backing by large VCs and people like CZ and Novogratz.
I had pulled all of my money from Anchor after the wonderland debacle. Was staking a lot of my stables on Binance - mostly BUSD - for a good 10%, and the rest in DeFi pools. Then Binance launched UST staking for > 20%, and greed took over. 🤦 Honestly, I had seen smaller marketcap algo stables like FRAX and IRON regain peg so I thought UST with a multi billion MC and billion dollar investments by Mike Novogratz and CZ would make it more stable. Fuck me for thinking that. 😭
IRON is essentially a previous iteration of the same idea as UST, is it not?
What price is IRON currently trading at?
BTW aren't all those failed projects still trading near peg? Coinmarketcap says IRON is $0.997
Burning mechanism for whose LUNA? LFG's? Investors? Who's gonna pay the price for burning their own billions of minted LUNA? I seriously think it's going the way of TITAN/IRON finance and the sooner people can accept this, the faster we can get out of this BS.
It wasn't "promising technology" in 2022. Maybe in 2020 it was a novel concept, but after IRON/TITAN exploded last year, the writing was on the wall for undercollateralized stable coins. Terra made a couple of adjustments to try and add to the stability of the coin. The Anchor protocol was established to push up the value of LUNA, in order to help it get off the ground. The Luna Foundation Guard was set up under the idea that having a strategic reserve of capital that could be deployed at the right time to blunt a downturn. But given that the LFG fund was not only insufficient to bridge the gap between the promised circulating supply of UST and the market cap of LUNA, but it was also held in volatile assets that were themselves dropping against the value of the peg of UST, the kind of correction that could be forced by the LFG was limited, like they needed to pull the trigger at $.96, rather than letting it collapse all the way below $.80 before making the call. So, at best it was a minor evolution of an already failed concept, that traded additional security for increased centralization. However, it wasn't a ponzi scheme. Bitconnect was a ponzi scheme. Bitconnect lied to holders, and claimed that they had an investment mechanism that generated value which allowed them to generate returns. In reality, akin to Bernie Madoff, they took the money that new entrants to the system brought in, and used it to pay the returns for the older participants. Terra operated on a startup model. They were honest that the money that was funding the fabled 19.5% Anchor return wasn't from them loaning out funds for interest, or investing loaned funds in different ways. They were fronting losses from their initial VC seed in order to entice users to the protocol. The increase in user base increases demand for LUNA which increases LUNA's market cap, which can successfully collateralize a larger supply of UST. The idea behind such a model is akin to the modern silicon valley startup, where the money from initial investors is actually given to newer investors to try and improve their market share, in hopes that when you have to cut rates and benefits, you'll still have a dominant enough position in the market that you can become profitable. Terra is kind of like WeWork. It tried to use a startup model to advance an outdated business model that was vulnerable to short term market downturns. It's not fraud in the sense that Nikola or Bitconnect were, but it's just a bad idea that had a shiny wrapper on it.
How's those IRON TITAN going, Mark from Cuba?
Literally all algorithmic stablecoins before UST have crashed and the secondary token fell to 0. Why would it be any different than other ones? As soon as the profit of attacking is higher than the cost it goes down. Look at IRON and TITAN, those worked similar
The crash was possible as a similar thing happened on Polygon, with IRON / TITAN in place of UST / LUNA, except that was backed by 75% USDC. Still there was a run and an implosion & infinite mint that killed it. I lost a ton. This kept me out of UST and LUNA.
Amazing, thank you. But, people in this space should have known about IRON Finance, how do you make that mistake?
Back when IRON / TITAN had their rugpull I actually did throw $100 into it at a low price and sold twenty minutes later for $1k. However a few hours later it dropped by a factor of one hundred times. Keep in mind that for you to win on this someone else has to lose. That was the first and last time i did something like what you are describing. Felt real scummy and was more risk than what i feel comfortable with.
Yes, have a look at the other algorithmic failure TITAN/IRON. IRON has returned to $1 while TITAN is 0.00000008
It's the same thing that happened to IRON/TITAN. Check out the price of Iron Titanium, it went from a high of $58, to being an order of magnitude cheaper than safemoon. The arbitrage mechanism will keep spitting out tokens, even though they're worthless, and every iteration just makes them inexplicably even more worthless.
The pair is irreversibly broken. The market cap for LUNA would be 3x BTC if LUNA goes back to it's ATH. Look at IRON/TITAN for a historical view of what happens when coins crash. Buying LUNA is gambling when the house has told you that it's going to win before you even place your bet.
At that point impossible to say, look how IRON/TITAN are doing.. Nowhere near ath..
The same thing happened with IRON/TITAN on Polygon. I lost a giant amount on that, even though I had researched the contract and they had done everything right I had thought. I later asked on reddit about LUNA and UST, what would be done to make it different. I wasn’t clear of the technology on the Terra blockchain so I asked in honesty. I never got a clear and specific enough answer, so I avoided UST. I had planned on putting on a big short on LUNA but it died before I had a chance. I expected the crash to come when the equity market and economic data suggested a recession.
Hopefully not the 'IRON Titanium Token' treatment. You want to see actual hell? Look that token up
LUNA is in a death spiral 377,576,651 supply to 1,461,947,359 in a day we could be looking at quadrillions of luna in just a few days while UST is DE pegged ​ TITAIN/IRON did something very similar its daily chart demise looked close to what luna is tracking now
Because building an economic system is hard. It's easy to overlook things, and it's easy to think of things in a simplified manner. There were several coins that launched with this design in the last few years and most of them burned out last year. But once you've got your coin launched and embedded in an ecosystem, it's hard to make major changes to it, see ETH's eternal upgrade plan. To their credit, after Iron.finance lit $2 billion on fire, Terra tried to bulk up their reserves through holding BTC and AVAX to give them something they could use to provide a counter push. But they didn't get enough to match the bloated supply of UST they had minted. Ironically, they had set out to build a self sufficient, decentralized stable coin, and the solution that they came to was they needed to build in a centralized, manned back up plan to keep things alive. The flaws in arbitrage based coins are structural, but they weren't obvious until IRON's failure last year. So it's hard to fault Do Kwon and the gang for building a flawed coin, especially since they did try to make course corrections. It wasn't a ponzi scheme, it wasn't a rug pull, it was just a bad design. Anyone who was committing to that ecosystem in the last year was doing so with the writing on the wall, regardless of if they stopped to read it.
The voice discussion today shared some dangerous misinformation. The main person said UST's return to $1 is guaranteed by chain analysis and the algorithm. Given a long enough time horizon. This would be true if Terra was collateralized by a basket of crypto like say DAI is for example. However Terra is also self collateralized with LUNA. They currently have 15 billion in liabilities from UST and 3 billion in assets via their BTC/AVAX/LUNA pool. While it may be possible mathematically for UST to return to peg there is a serious question of liquidity. Who wants to own an undercollateralized stable coin? IRON is still for sale if you want one...
“Inevitably”. Why? It’s like saying IRON will inevitably recover the peg. Majority of UST holders are only waiting for the coin to get closer to the peg to exit. But the liquidity to exit, provided by LUNA is basically gone. And you still have billions in UST trying to exit
Still, be careful. Iron finance was 75% backed and that wasn't enough to stop a coordinated attack against it. The price of IRON dropped to $0.75, perfectly in parity with its actual backing. The attack on LUNA looks like it was coordinated as well. Some party borrowed 100k bitcoin (that's $4 billion!) and used it to break the peg and short the results. One estimate says they made close to $800 million. Point is, any undercollateralized asset is a big walking target, and you can't believe how deep the pockets are of the big investment firms.
I saw this movie the last time when they called it, IRON Titanium
I can't tell what is the best option, but I did stay in IRON until the end. Didn't want to sell at loss, so I didn't sell at all.
i wish it wasn’t so, based on experience, I believe it’s done. i held on hope last time i went this the IRON fiasco and i’ve learned my lesson and sold my UST, but my lost shirt on LUNA. holding that to 0 at this point crypto community will move onto the next project and will not look back
i wish it wasn’t so, based on experience, I believe it’s done. i held on hope last time i went this the IRON fiasco and i’ve learned my lesson and sold my UST, but my lost shirt on LUNA. holding that to 0 at this point crypto community will move onto the project and will not look back
he obviously didnt live thru the IRON fiasco UST is dead if it ever pegs again will be tons of sellers, trust is hard to earn in crypto. theres none left with LUNA and UST
Rate my portfolio: LUNA: 40% IRON / TITAN: 20% EL Salvador Volcano Bonds: 10% UST (for buying dips): 30% Feeling very safe, full of stable coins!
[Read what happened to IRON, it's a death spiral](https://ciphertrace.com/analysis-of-the-titan-token-collapse-iron-finance-rugpull-or-defi-bank-run/). Any arbitrage will make loads of money way before it hits US$ 1 again so the pressure will keep pushing the price down, even if insane amounts of $UST are being bought. They increased the minting/burning of $LUNA as it's, of now, the only backing to $UST, so that pushes $LUNA even lower. No one buys $LUNA, the price goes down and they need to mint even more $LUNA to burn for the $UST. Any up movement on $UST will make arbitrage that bought at the lower $UST profitable and they will sell, pushes $UST down. So on and so forth.
[Rinse and repeat of IRON stuff](https://ciphertrace.com/analysis-of-the-titan-token-collapse-iron-finance-rugpull-or-defi-bank-run/)
\# 5 is a sobering reminder: one of the earlier signs of uncontrolled inflation is the interest rate you get for your money. If / when a bank suddenly raises the APY to 20%, this would cause frowns and sweaty hands in the real world - in but in crypto LaLaLand nobody raised a finger until 48 hours ago. Lesson to learn: if a bank pays you 1% APY in your savings account is because they make 28% APY with their credit cards and unsecured loans. They can afford it because they have the profit margins for it - and even then, a CDO crash / Lehman brothers clusterfuck happens. \#6 - I disagree. ETH is a great idea, but poorly implemented. It's not going nowhere fast - and there is a risk that in this bear market, someone else is going to come out of nowhere and eat its lunch. The really big lesson is: do not invest in a project because the project leader is charismatic. I would not touch Elon's tokens with a fishing rod. Mr. Do will probably vanish after the Terra/Luna debacle. Mr Cuban has not said peep since Titan/IRON. Billionaires are not good governance managers.
Yes, but if LUNA keeps dropping then you wind up in a situation like IRON/TITAN, where there's only a few thousand IRON left in existence because no one wants to buy TITAN to mint IRON, because TITAN is worth 1/9 of what safemoon is.
luna UST are TITAN and IRON ver 2.0
I don't think comparisons to IRON is a good bull case, seeing as Iron.Finance folded, and IRON now has a trading volume of less than 1k. Then coin regained its peg, but it destroyed $2 billion in value in the process, and is now a functionally dead coin.
It's not an attack on all crypto. It's a fundamental flaw in the protocol. It's a protocol that requires trust, in a system that is trustless. USDT has similar issues with being undercollateralized, but other stable coins like GUSD, USDP, and DAI are overcollateralized, and therefore able to resist these kind of moves. TERRA/LUNA operates on the same principle as IRON/TITAN did when it got tore apart, and in less than a week their equivalent of LUNA went from being worth $58, to being so worthless you needed 9 of them to buy one Safemoon. LUNA is falling prey to the same fate, because it's built on the same foundation.
For those who have a substantial amount invested in UST and now pacing nervously mumbling WTF to yourselves, please DYOR and understands how the UST peg works first. Quoting this from Terra Discord, as low as LUNA goes, like 1/100th of a penny, it comes back as soon as excess UST is all burned. Currently burning 100 million an hour. That may mean total LUNA supply does a 10,000X etc., and prices will be very, very low, but that’s how the system works. Believe it or not LUNA will drop around 0.00005 but UST will reach the peg again. This happened with IRON and TITAN and it took 3 months for the algo stable to go back to 1 USD. UST will re-peg no matter what, even if it takes 1 trillion Luna to mint as long as there's demand for LUNA. It'll take time people, but it's highly likely UST will regain it's peg. Stay strong, and be safe.
I'd be careful of that. [This time last year, Iron.Finance had $2 billion TVL in a near identical protocol.](https://ciphertrace.com/analysis-of-the-titan-token-collapse-iron-finance-rugpull-or-defi-bank-run/) IRON was a dollar stable coin that held its peg through arbitrage. If IRON fell to $.95, you could buy it, burn it to mint $1 worth of their control token TITAN, and pocket the difference. They had a $2 billion ecosystem built, and in less than a week, 99.9% of it evaporated. TITAN, their version of LUNA, [was worth $58 this time last year, now it's worth an order of magnitude less than Safemoon.](https://coinmarketcap.com/currencies/iron-titanium-token/) Unless you're confident that they're going to be able to get a bailout that can bridge the gap between the outstanding supply of UST, and the market cap of LUNA, which is a roughly $14 billion loan, then the whole protocol is going to collapse and both UST and LUNA will go to zero.
This is the second algorithmic stablecoin collapse that I witness (the first was IRON/TITAN one year ago). It does make you think, there must be something inherently wrong with stablecoins lol, and I am not surprised that is what the regulators are mostly concerned about
Reminds me of the great IRON and TITAN debacle. Titan was the best stablecoin there ever was. Once it hit 0, it stayed there . Doesn’t the LFG and Luna foundations take the 1.8 billion loss on the btc sold for lower value though?
Same thing that happened to IRON, with a twist. At first, people will buy UST at whatever it's depegged to, and convert it into LUNA at a 1 UST = $1 of LUNA, then sell the LUNA, making a profit that way, That reduces the supply of UST and pushes it back up toward $1, but increases the supply of LUNA, and increases the sell pressure on LUNA, which continues to tank the price on LUNA, which means that the $1 worth of LUNA that you converted from $.85 cents of UST is rapidly depreciating. When enough faith is lost in the value of the project, then it dies out. The twist is, unlike IRON, UST is also backed by a large amount of BTC, which means that BTC itself is exposed to the price hazard too, albeit it's a partial exposure, whereas the whole point of LUNA is to defend the peg and if it fails at that then LUNA goes to zero, but in the process, it shoves $1.5 billion in BTC back into an already shaky market, pushing the price of BTC down, and as goes BTC, so goes alts, only more so. So a failure to adequately defend the peg might be the inciting event for Crypto Winter.
It'll repeg eventually, just like how IRON and USDN recovered their peg. What will happen after repeg will be interesting to see though, either LUNA will fall to obscurity or somehow come back stronger.
I don't see an IRON cryptocurrency in the top 100. I'm sure there are many "stablecoins" that have lost their peg by a lot, but I was only referring to the top 100 cryptocurrencies.
The IRON debacle was different. Someone found an exploit to print an infinite amount of IRON tokens to crash its stablecoin TITAN extremely quickly.
How long did that IRON algocoin stay depegged before people started the bank run? Its been 8 hours now since UST depeg. Apparently needs billions to bring it back up. UST is falling yet LUNA is rising somehow. Feels shitcoiny
I don't think it was that long ago but the IRON finance one was pretty bad/good one depending on your point of view.
TerraUSD, commonly known as UST, is a stablecoin pegged by "maths" to the USD. In theory 1 UST = 1 USD. Luna is a governance token that lets you... actually it doesn't really let you do anything in the real world. But let's pretend Luna is very in demand because it just is, okay? So the Luna being traded on the market has some nominal dollar value, let's say $50 per Luna, and a whole bunch of Luna currently exists, with more coming into existence over time via Proof of Stake rewards. Now, the key mechanism of Terra/Luna is that you can swap them back and forth for each other. A price oracle (controlled by Terraform Labs on behalf of Luna staking validators) informs the Luna blockchain of its dollar value at any time. You can then use crypto magic to "burn" Luna into a dollar amount of UST, even if UST is currently trading above $1. So UST is trading for $1.10. You burn a Luna for 50 UST, then sell UST for some other stablecoin, and get 50 x1.1 = 55 USDC. Hey, free money! In theory, this also makes Luna more scarce, and UST less scarce. So the price of Luna goes up as everyone does this, while the price of UST gets pushed back to $1. The same can happen in reverse. Say the price of Luna is now $100, but the price of UST is 90c. You buy 100 UST for 90 USDC, swap it for 1 Luna, then sell it for 100 USDC. More free money! There's more of Luna so its price goes down, but less of UST so its price goes back up, again to $1. This, in theory, means UST is constantly "backed" by Luna. Okay okay, but where does the demand for Luna come from in the first place? Well, what if I told you there was this magic box, the Anchor Protocol, that is guaranteed to pay out 20% APY for your UST? Wow that's great, everyone wants UST for more free money! But UST is minted from Luna, so now everyone wants Luna too. This, ladies and gentlemen, is the future of finance, a multi-billion dollar perpetual motion machine sustained entirely by itself! With one wave of the hand, the Terraform Labs has pulled itself up by the bootstraps into infinity. But wait, you might ask, who's paying out that 20% APY interest? Well, the answer to that is in two parts. Seem the magic Anchor box also lets you borrow UST, and charges you interest, but you can only do this if you deposit Luna or other crypto into the box. You do this because you are a smart person and your trades never go tits up, and you also know for a fact that Luna is going to the moon. It's literally in the name, after all. So why not deposit your Luna for UST on interest, go make a fortune on DogeElonMarsRocket, come back after having earned 5x profit, pay your interest, then withdraw your Luna which has now also 5x in value? Leverage is fun! Now just hold on a minute, you keep asking, because you hate to be rich for reasons. The Anchor protocol shows there are more people farming that 20% yield than borrower assets. How is this sustainable? Never fear, interpid DeFi degen. Do Kwan and Terraform Labs can just top up the "Yield Reserve" of Anchor at any time to guarantee that 20% yield. After all they have vast stores of Luna, so you have nothing to worry about. But still, you're not satisfied by these perfectly cromulent answers explaining the future of finance. Since Luna is traded on the open market, isn't it possible that both the price of Luna and UST could dip at the same time? And doesn't that mean it could lead to a Weimar Republic style hyperinflation death spiral when a cratering UST can only defend the peg by minting vast amounts of Luna, further deflating the dollar value of the UST backing asset? Lol, I say. Lmao. That can never happen. We've seen it happen once already with IRON/TITAN, and we've learned our lesson. If you buy a whole lot of bitcoins and say that now also backs UST, this kind of collapse is now clearly impossible. Now are you in or what? LGF! WAGMI!
IRON finance flashbacks... the first time they rugged lmao
After IRON, I avoid these kinds of stables like the plague.
IRON and Titan depegged after some months and the first depeg completely obliterated the protocol. The algo behind Terra LUNA also works differently.
Just lost 40$ swapping UST to USDT ... still have PTSD from IRON Gained 831UST from Anchor over the time so still ok but this fud still sux
Moved to USDC yesterday for the peace of mind, reading about the IRON fiasco made me pull the trigger.
I actually think the Anchor protocol is a seriously risky investment. I steer right away from it. Yes it could cost me a few points of APY, but as today's event showed, it not infoulable. If you're new, for a good study, go b ack and read about the destabilsation of the IRON peg with the TITAN. You will start second guessing all your stable coins. Remember the old adage, 'if it's too good to be true, it probably is'.
Snap this bitch. I AM IRON MAN.
>Luna has the same problem exactly - yes, they have arbitrage mechanism which allows to burn Terra and get more Luna (valued in dollars), and they have a reliable oracle, but this mechanism is rate limited (exactly to prevent uncontrolled minting and death spiral similar to IRON-TITAN story). ​ Coins like Iron failed for a few reasons. Reasons that UST either no longer needs to be concerned about or never shared. Stable offerings like Iron relied recursive holding incentives for growth. This meant If you held the algo stable coin, you would automatically build your stable coin holdings. This was unsustainable and it led a feedback loop of capital flight simultaneously shrinking the value of the stable coin and its holding yield. This increased principal risk and lowered compensating returns. As Iron and similar projects were too new for any economic foothold this death spiral of capital pressure was too much to sustain the peg. In short, it was a shit coin driven by speculation with no real use and the speculation was too heavy for the peg to bear. The team incorrectly assumed their algo mechanisms were more important then their stable coin's economic use case. UST was smarter in the early stages by securing both uncorrelated and correlated economic uses that created a strong foothold. Services like Chai created a base of new UST users that had no clue how to use DeFI or what it even was. As time has passed, UST is now seen as a way to protect the entire DeFI industry from centrally controlled stable coins like USDC/USDT or more decentralized coins like DAI that still leverage the centralized coins previously mentioned. This is the same industry that was originally built on Tether. A stable coin backed by fairy dust, and yet it has held up its peg very well. As UST has matured. it has become more resilient. UST is now secured by reserves of Bitcoin and even other alts. In the event of an unpeg under 98 cents, UST holders will have the option to exchange UST for Bitcoin/alts at a 2 cent loss. This helps to alleviate the pressures of a "death spiral" as holders will no longer need to be funneled back into Luna in the event of a fear driven sell off. The use of Bitcoin as a reserve asset and additional safety mechanism should be enough for even the largest UST doubters to feel more secure. It's pretty clear UST It is not going anywhere. The DeFI industry can not continue to be built on stable coins that can be frozen by corporations or the governments that oversee them. Developers already understand this and it is exactly why UST adoption has been sweeping through DeFI. We now have Curve's massive 4pool liquidity and UST bleeding into many ecosystems across multiple chains. UST is no longer as risky as it was during our markets largest crashes, and a much more immature UST already survived those.
Ok, full stop disclaimer: I don't hold neither Luna nor Terra, and know relatively low about the subject, I've found this article quite reasonable and helpful. Revenue in Anchor will mostly be generated mostly from people borrowing ( ~= taking long position on Luna), and I think they also invest in other PoS blockchains, using "bonded assets"? So it doesn't sound more ponzi-ish than the whole crypto ecosystem in general. --- Considering "bank run" scenario - it is indeed possible, and not only UST, but all decentralized stablecoins, including DAI, are subject. Luna has this meme that it is backed not by luna value, but by the "value of the ecosystem" (and they are quite serious about it in a sense that they have a popular payment app and that kind of gives UST inherent medium-of-exchange value). But DAI, for example, is also mostly backed by ethereum, and, henceforth, "value of ethereum ecosystem". The problem is the same with both of these systems: if the underlying collateral is overvalued and suddenly corrects (say, collective public perception of value of ethereum gone 0.1x due to some catastrophic black swan event), the arbitrage mechanism might not be fast enough to destroy stablecoins - and there will be too many. Luna has the same problem exactly - yes, they have arbitrage mechanism which allows to burn Terra and get more Luna (valued in dollars), and they have a reliable oracle, but this mechanism is rate limited (exactly to prevent uncontrolled minting and death spiral similar to IRON-TITAN story). Basically, that means that it can not crash in normal market conditions (but can dip, we've seen UST dip to 0.8 in one of the prev. year crashes, I think in May), but in case of some really drastic re-evaluation it can become unbacked. Similar thing can, indeed, happen to DAI (which is over-collateralized so it is much harder to imagine, but still, a lot of DAI is locked in some smart-contracts and might not be even available for arbitrage, I believe). So my judgment: not a Ponzi, but risky indeed.
I got reckt on IRON and DINO
I hold stable coins to generate interest. I was yield farming IRON.
I've experimented with multiple L1s and have tried small and large amounts of staking. the only time I could've gotten rich was purely unsustainable, and I couldn't have sold even if I wanted to (IRON). My best staking returns are from a large amount of audio I was luckily airdropped, so this is pretty much true. Algo and Terra defi are the only two I've actually made profits on from small initial investments. But the amounts are small, not life changing by any means. Nowadays I just stake any coin that is stakeable to cushion price dips and DCA. I avoid LPs like the plague
Titan had no use case besides backing IRON. Terra runs an entire blockchain that has multiple uses (DeFi apps, payments, etc). There's a big difference.
IRON has regained it's peg, which is impressive. I don't hold any but I randomly check in.
Actually the "stable" coin was IRON. Uninformed investors like Mark Cuban didn't realize IRON was 75% USDC and 25% TITAN. People kept investing in IRON which increased the price of TITAN which increased the ROI to crazy high levels. The price of 1 TITAN was 60$ at one point. Until people stopped investing and started selling IRON and thus also selling TITAN causing a chain reaction that drove the price of TITAN to 0.0000000...8? So 1 IRON was worth like 0.75 USDC. Funny side note, the Polygon Network was also overloaded from people selling IRON or TITAN so a lot of people couldn't even get out while the price was dropping. This made Mark Cuban very angry! "Regulation in crypto! Don't like loosing money! 😭 😭"
IRON Titanium token (ok ok I'll show myself out)