Weekly DeFi Update (Week 20, 16/05/2022 – 22/05/2022)

65.90% of voters favour a LUNA hard fork. South Korean parliament summons Do Kwon to inquire about LUNA and the aftermath. USDT and USDC boost transparency efforts.

Key Takeaways 

• The Terra (LUNA) blockchain is heading for version 2.0, with 65.90% of the voters favouring a hard fork at the time of writing. The Luna Foundation Guard plans to compensate UST holders with its remaining funds.
• Do Kwon is summoned to a parliamentary hearing as politicians inquire further details about the LUNA incident and its aftermath.
• Tether (USDT) shrinks the portion of commercial paper in its reserves by 17%, while Circle commits to transparency with weekly USDC reports.
• Deus Finance’s DEI became the latest algorithmic stablecoin to lose its dollar peg, and plummeted to 55 cents. As of 22 May 2022, DEI is trading at about US$0.70.
• This week’s price, volume, and volatility indices are negative at -1.40%, -52.00%, and -56.92%, respectively.

Highlights

• Wormhole announces $10 million bug bounty payout
• Terra’s amended revival plan would decrease the allocation for post-attack UST holders
• Do Kwon amends Terra 2.0 proposal during the vote on it
• Fantom’s SCREAM Falls 50% After Algorithmic Stablecoins Cause Bad Debt
• Anchor saw $1 billion of liquidations during UST and Luna’s death spiral
• Crafting Finance brings synthetic asset issuance and trading on NEAR
• Curve Finance community initiates proposal to stop incentivising UST pools with CRV
• Institutional DeFi enabler? Data firm Kaiko probes DEX liquidity with new product
• Justin Sun still thinks algorithmic stablecoins are a good idea
• SWIFT, Capgemini team up to test using the international network for CBDC transfers

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