Chart of The Day: LUNA Burns in 2022 For those unfamiliar with the relationship between LUNA and UST...Each UST minted requires an equivalent dollar amount of LUNA to be burned, with the redemption function...of each UST being able to mint $1 worth of LUNA....UST’s impressive growth of $6.5B in supply YTD has resulted in a continuous burn of LUNA supply, with...

Adding to the excitement, of course, was the fact 50M Anchor tokens were airdropped to users that staked Luna...In anticipation, we published a brand-new Daily on how Anchor could impact the value of Luna and the...post, which was seconded by Terra’s founder Do Kwon: (Disclosure: Delphi Ventures is an investor in $LUNA...

Nonetheless, AXS, LUNA, and DYDX were among today’s top gainers....AXS and LUNA hit fresh ATHs today following the implementation of AXS Staking and Terra’s Colombus-5...The most significant change to the token economics was the decision to burn LUNA permanently instead...LUNA (worth over $1bn at current prices).

In Terra’s case, DEX base pairs usually utilize UST instead of LUNA, therefore this growth in TVL is...Lido TVL Grows as LUNA Price Appreciates Another beneficiary of a higher LUNA price is liquid staking...on the Terra network has increased meaningfully since the 27th of November, around the same time the LUNA...circulating LUNA supply.

...highlighted two names that were showing decent relative strength in the face of dire market conditions: LUNA...LUNA has been on an absolute rampage over the last two weeks, printing a fresh all-time high as markets...At the time of this writing, LUNA is once again flirting with a triple-digit price tag after doubling...

SOL and LUNA have been stand outs, hitting fresh all-time highs....The jump in both of their TVLs is likely due to the sharp price increase in SOL and LUNA, the native...SOL & LUNA stand out. Anchor's integration with Lido helps drive UST demand.

. $1) for newly minted LUNA....any LUNA that gets minted dilutes miners who have LUNA staked...., depressing the LUNA price....Since then, ~470 M USD worth of LUNA has been swapped to mint Terra, burning 4.3% of LUNA’s total supply...This implies that $1 worth of LUNA must be destroyed to mint a single TerraUSD. ...

Staking LUNAcy Today LUNA saw an upward movement of approximately 15%, which was likely caused by the...increase in LUNA staked and LUNA burned. 1.14 million LUNA were burnt from the circulating supply today...Additionally, we also saw an additional 3.59m of LUNA tokens being staked and removed from the liquid...from LUNA’s liquid supply.

LUNA New ATHs LUNA hit a fresh all-time high yesterday, undeterred by Powell’s hawkish comments that...LUNA’s circulating supply saw a sharp spike on Nov. 11,  caused by an increase in the amount of LUNA...Approximately 88.675M LUNA will be burned over this period.

The recent UST depeg and LUNA’s collapse were devastating; the event sent shock waves across the industry...Osmosis, which had a high number of UST and LUNA pairs issued an emergency upgrade hard fork to shift...

Layer 1 tokens have been in the spotlight lately, with AVAX on a tear while LUNA and SOL hit all time...As seen in the chart below, LUNA’s price appreciation has helped propel Terra’s TVL higher, making it...Layer 1 tokens have been in the spotlight lately, with AVAX on a tear while LUNA and SOL hit all […]...

1 UST for $1 worth of LUNA (more on this later)....system and structural selling from LUNA’s natural mint/burn mechanism....Similarly when UST is trading < $1 you can use 1 UST to mint $1 worth of LUNA, increasing the LUNA...supply and capturing an arbitrage (by selling the newly minted LUNA).

Topics Market Update – Macro, S&P500 & Bitcoin Terra Update – LUNA/UST/ANCHOR Market Update...1 UST for $1 worth of LUNA (more on this later)....system and structural selling from LUNA’s natural mint/burn mechanism....Similarly when UST is trading < $1 you can use 1 UST to mint $1 worth of LUNA, increasing the LUNA...

Users can also use the native Luna mint-burn mechanism to redeem UST for Luna, and I’ll touch on this...Luna....borrow UST against the Luna, blast the market with UST, borrow more Luna which is then cheaper due to...We saw this during the Luna day....You saw that during Luna day.

...to LUNA<>OSMO....In the above example: A) User has 12 LUNA and 70 OSMO, they put 2 LUNA and 10 OSMO in single side staking...and 70 OSMO to 17 LUNA and 50 OSMO. ...For example: in a slashing incident with a 5% penalty a user with 100 LUNA staked would lose 5 LUNA.

...prey to an algorithmic stablecoin death spiral, wiping out nearly $40B in market cap across $UST and $LUNA...Delphi Ventures Delphi Ventures Master Fund purchased a small amount of $LUNA (~0.5% of our NAV) on the...Even at LUNA’s peak price this year, LUNA and other Terra assets made up only ~13% of NAV across Delphi...

The great deleveraging event led by the collapse of LUNA sent LTC down to roughly $40.3, coinciding with...two major deleveraging events of last year, LTC showed relative strength as it rallied 64% during the LUNA...context, you could argue that LTC/USD is trading at the equivalent of BTC’s $26k-28k level (i.e., pre-LUNA...

Each UST is minted through the burning of LUNA and can also be redeemed for the dollar equivalent of...LUNA by burning UST....This has led up to a net burn of ~11.8M LUNA over the course of 2 weeks....Luna Foundation Guard (LFG) recently announced a $450M LUNA burn to capitalize Anchor Protocol’s Yield...

UST-LUNA Bank Run: UST is an algorithmic stablecoin....To mint a dollar of UST, an equivalent dollar of LUNA is required to be burned....Furthermore, this mechanism is extremely PvP, as arbitrageurs try to capture the difference between LUNA...This made LUNA an extremely reflexive asset, resulting in a death spiral.

In the above example: A) User has 12 LUNA and 70 OSMO, they put 2 LUNA and 10 OSMO in single side staking..., then provide liquidity with 10 luna and 60 OSMO....C) A swap is made where the pool now consists of 15 luna and 40 OSMO....and 70 OSMO to 17 LUNA and 50 OSMO....Keep in mind the LUNA in this example stays custodied on Osmosis.