The recent UST depeg and LUNA’s collapse were devastating; the event sent shock waves across the industry. Secondary effects rippled across other blockchains, severely affecting Kava, Lido, and other protocols which had exposure to Terra and/or UST. Decentralized and centralized exchanges alike were stress-tested to their extremes. But it’s during these periods of extreme volatility the robustness and resilience of DEXs became even more salient.

The first tell-tale signs of the impending UST depeg occurred when there was a massive excess of UST flowing into Curve’s newly deployed 4Pool. With the gauge vote still yet to happen and incentives not yet distributed for LPs, the total 4pool liquidity was only $4 million at the time. The lack of liquidity in the 4pool left it vulnerable and an easy target.

On May 7th, wallet address 0x634ec66a3794ee24d30490a722c5681bdbac3efe made a series of 9 transactions, 4 of which were sent directly to miners; totalling $2.17 million UST sold for USDC. This