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Blockchain technology is about to transform every trust-based interaction of our lives, from financial services to identity, from health care to our Internet of Things devices. In this podcast, host Laura Shin talks with industry pioneers across tech, financial services, health care, government and other sectors about how the blockchain and cryptocurrency will open up new opportunities for incumbents, startups and everyday people to interact more efficiently, directly and globally.

May 13, 2022

Jon Wu, head of growth at Aztec Network, recaps a historically chaotic week in the Terra ecosystem that saw $UST depeg, Anchor depositors flee, and $LUNA fall 99%. Show highlights:

  • how $UST, $LUNA, Luna Foundation Guard (LFG), and Anchor Protocol are supposed to work
  • why Jon compares the Terra blockchain with VISA, LFG with the Fed, and Do Kwon with Jerome Powell
  • how a previous $UST de-peg foreshadowed this week’s dystopian price action
  • how a bitcoin short seemed to have kickstarted $UST’s depeg and why Jon thinks it was a deliberate attack
  • why Luna Foundation Guard originally purchased Bitcoin – and how that plan backfired and made the Terra death spiral even more violent
  • why $UST had such low liquidity this week – making it more susceptible to a bank run
  • what Jon’s predictions are for $UST and $LUNA going forward
  • what were the reasons behind Terra halting
  • why Jon does not think this will be the end of algorithmic stablecoins
  • why Jon thinks this should not affect ETH directly, even though there is a high amount of staked ETH in the Terra ecosystem


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Episode Links


Jon Wu

  • Twitter


Jon’s Write-Up on the UST Depeg


Previous Unchained Coverage of Terra




Other Recaps on Terra: