Weekly DeFi Update (Week 19, 09/05/2022 – 15/05/2022)

USDT briefly loses peg after the collapse of LUNA and UST. Do Kwon publishes a ‘Terra Ecosystem Revival Plan’ outlining the way forward.

Key Takeaways 

• Tether (USDT) briefly lost its dollar peg this week, dipping as low as US$0.95 on Thursday as the collapse of LUNA and UST shook the market’s confidence. However, the $1 peg was restored by Friday. At the time of writing, USDT is trading slightly under $1, at $0.9989.
• Celsius reportedly removed at least $500M from Anchor during the recent UST turmoil. Founder Alex Machinsky took to Twitter to deny recent rumours of losses as a result of market volatility.
• UST’s depegging continued this week, with LUNA falling to below $0.01. Do Kwon published a Terra Ecosystem Revival Plan over the weekend which aims to lay out the way forward for the ecosystem.
• This week’s price index was negative at -33.72%, while the volume and volatility indices were positive at +67.25% and +230.03% respectively.

Highlights

• Terra, Luna, and UST: How we got here
• Lido Warns Leveraged Traders at Risk of Liquidation as ‘Staked Ethereum’ Loses Peg
• Lido Deploys Additional Curve Pool to Improve Liquidity Around Bonded ETH Peg
• Terra fork won’t work, according to Binance CEO
• UST’s Do Kwon was behind earlier failed stablecoin, ex-Terra colleagues say
• Tether to move over 1B USDT from Tron to Ethereum and Avalanche
• Crypto lender’s Tether loan halved
• Blockchain analytics provider Nansen integrates and invests in DeFi data app APY.vision
• Aurora launches $90 million developer fund to boost DeFi on NEAR Protocol
• Over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard
• Blizz Finance protocol drained after Chainlink pauses LUNA oracle
• Trader may have lost $9M in exit from USDT
• Abracadabra enables leveraged yield farming on Stargate

Check the latest prices on Crypto.com/Price

Top Token Metrics

DeFi Index Tokens

Notable Events

• Anchor contributors consider cutting UST yield to 4% from 19.5%
• Lido Increases Liquidity Incentives as stETH Trades at Discount to ETH

DEX Metrics

Notable Events

• PancakeSwap governance proposal set to cap CAKE supply at 750M