The Fall of UST – Luna fiasco May 11, 2022
The Fall of UST – Luna fiasco <BR><BR><BR>
The Fall of UST – Luna fiasco
Approximately 70% of the UST supply was locked up at Anchor, leaving the remaining circulating supply
vulnerable to a dilution after getting out from Anchor protocol.
On May 7th 2022, customers started withdrawing their tokens and cashing out after months of earning 19.5 percent APY in UST rewards from Anchor. Users hurried to trade out of their UST positions, causing Anchor’s Total Value Locked (TVL) dropped from $22 billion to $2.56 billion in just 5 days.