LUNA and UST How far will they go?
Everyone in the crypto market is talking about LUNA and UST, as well as the chaos that is causing a lot of FUD in the market. Let's look at what's going on with LUNA and UST. UST, a dollar-pegged stablecoin, has depegged twice in the last 3-4 days, causing initial chaos, and is now attempting to stabilize around $0.90 per dollar. UST is an algorithmic stablecoin with no collateral backing it. It keeps its value through an arbitrage system and a protocol mechanism in which LUNA serves as a reserve asset throughout the process. LUNA – UST THE CREATION MECHANISM You can always exchange LUNA for UST on a dollar-for-dollar basis, and vice versa. When LUNA was around $100, you could redeem it for 100 UST or 100 UST for 1 LUNA. If the price of UST is less than a dollar, you have the option of burning LUNA, then minting UST and pocketing the difference as a profit. Similarly, if UST exceeds a dollar, you can now burn it for LUNA to restore the peg. Many of them have been purchasing US...
