Crypto & Onchain · Requested
Terra/Luna: A Stablecoin Death Spiral
How an algorithmic stablecoin backed by its own sister token, plus a 19.5% yield, grew to $18 billion and collapsed in a week in May 2022: the mint/burn mechanism, the Anchor yield, the run, the reflexive spiral, and the contagion that followed.
Step 1 of 5 · Overview30 min read ·
Key idea
Prereqs: Stablecoins; Games in markets (bank runs); Reflexivity (Soros). Next: Narrative trading. Sources: Jump/Terraform SEC complaint (2023), Nansen on-chain analysis (2022), Coffeezilla, Matt Levine's columns.Not investment advice. Education only; these instruments can lose money quickly.
Next: 1. The design