FatManTerra alleged on Dec. 6 that the basis reason for Terra’s UST implosion was Terraform Labs’ (TFL) dumping of over $450 million UST on the open market over three weeks earlier than the ecosystem collapsed.
🧵 New blockchain knowledge reveals the basis reason for the Could UST depeg. Within the 3 weeks main as much as the depeg, one entity dumped over $450m of UST on the open market. 4 days after their final sale, UST began collapsing.
That entity? None aside from Terraform Labs. Particulars inside. pic.twitter.com/aFfzgpBZ5A
— FatMan (@FatManTerra) December 6, 2022
FatManTerra cited blockchain knowledge collated by an nameless researcher, Cycle_22, whom he stated found the insolvency of Singapore-based crypto lender Hodlnaut.
Terraform bots addresses dumped $1B UST
On-chain proof exhibits that TFL dumped over $1 billion UST by promoting on Curve or transferring to Binance. The researcher was in a position to uncover this as a result of all of the transfers originated from the TFL Curve Bot 2 handle that was additionally talked about within the unbiased audit it launched.
FatManTerra says TFL weakened the Curve pool
FatmanTerra tweeted that TFL’s narrative that UST was attacked is fake as a result of the builders weakened the decentralized stablecoin curve pool.
In accordance with him, the irresponsible dumping of a large quantity of UST inside a brief timeframe diminished liquidity and severely weakened the peg.
In accordance with FatManTerra, this huge dump and the $2.7 billion that TFL eliminated by means of Degenbox contributed to the whole collapse. This meant that TFL and Do Kwon had successfully eliminated all the actual {dollars} within the ecosystem, making it not possible for individuals to redeem their UST.
Though TFL and Luna Basis Guard not too long ago launched an unbiased audit to point out it did the whole lot to redeem the peg, together with spending the whole Bitcoin peg protection fund, the audit signifies that LFG despatched 47k BTC to Soar Crypto, which stays unaccounted for.
The brand new revelation additional provides to the majority of the proof towards Terraform Labs and Do Kwon, who’s at present on the run and is needed in South Korea
