Terra
UST, an algorithmic stablecoin, lost its dollar peg. LUNA's mint-and-burn mechanism ran in reverse, its supply ballooned from hundreds of millions to trillions of tokens, and roughly $40B of market value collapsed within days.
After the fall: Terra 2.0 and Luna Classic still trade at a small fraction of the peak.
- 1-1y
- 2-1y
- 3-3mo
- XDeath
Spacing is ordinal, not to scale. Numbers match the list below.
- 1
Anchor paid ~20% yield that borrower demand could not fund, so its reserve needed repeated top-ups.
Visible 1 year before death | Yield with no source
- 2
UST's peg depended on LUNA's market cap absorbing redemptions, not on outside reserves.
Visible 1 year before death | Backed by its own token
- 3
Leadership dismissed skeptics publicly instead of answering questions about the mechanism.
Visible 3 months before death | Dismisses scrutiny
If the yield has no counterparty, you are the yield.
Editorial summary of public reporting. Allegations are labeled as allegations. Not financial or legal advice.
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