Decentralized finance (DeFi) giant Curve Finance (CRV) tweeted about TerraUSD (UST), the stablecoin of the Terra (LUNA) ecosystem, after which it fell 20 percent. Here are the details…
Curve plunged with Terra (LUNA) tweet
DeFi platform Curve (CRV) native token dropped one percent on Thursday after the platform proposed removing support for UST. 20 fell. CRV fell as low as $0.9, a 16-month low. It is currently trading at $1.10 after recovering slightly. The token’s losses were triggered just after Curve offered to remove incentives to maintain liquidity pools made up of Terra’s UST. The Curve community voted overwhelmingly in favor of the proposal, given that the UST’s de-pegging (decoupling from the US dollar) also threatens to destabilize Curve’s other liquidity pools.
While the offer represented clear positive for Curve overall, it received some criticism on Twitter. Users accused the platform of abandoning UST owners at a crucial time. The sale appears to have spread over Curve’s locked total value (TVL). Data from Defilama shows that Curve’s TVL has dropped nearly 9 percent in the last 24 hours to $9.3 billion.
However, the stock market has benefited greatly from the decline of UST while still being exposed to UST. The “3pool” liquidity pool is now the largest liquidity pool in DeFi after the UST boom scuttled Terra founder Do Kwon’s plans to maintain “4pool”. Twitter user @Dynamo_Patrick noted that during UST’s de-pegging, Curve’s revenue rose 625 percent from the previous week as traders sought to dump UST holdings.
Terra announced its new plan
Meanwhile, After the recent crash as we reported onKriptokoin.com The Terra ecosystems are working on a recovery plan. A majority of Terra community members voted in favor of a hardfork. In recent development, Terra has released an amendment to proposal 1623 and made three major revisions following community feedback. Revisions include increasing genesis liquidity, reducing distribution to pre-attack LUNA holders and post-attack UST holders. Terra says the 5% change from reducing distribution to post-attack UST owners will be allocated to the community pool. Terra opened the vote for the 1623 proposal, which expires in 5 days.
