LogFAQs > #965032578

LurkerFAQs, Active DB, DB1, DB2, DB3, DB4, DB5, DB6, DB7, DB8, DB9, Database 10 ( 02.17.2022-12-01-2022 ), DB11, DB12, Clear

Topic List	Page List: 1
Topic	Crypto already going back up?
DarkRoast 05/14/22 2:13:07 PM #57:	Terra wasn't really a bug in as much as it was a pretty obvious flaw. The tldr is that Luna depended on UST being pegged to the dollar, but UST didn't actually have an underlying value backing, instead using "complex algorithms" which turned out to be releasing more Luna coins. The problem is that the more Luna coins you make, the less value they have, which also worsens UST's value. Ultimately it becomes a self-perpetuating death spiral. They initially tried to peg UST with bitcoins but that didn't work, so they made more Luna. --- Lenovo Legion 7 - Ryzen 5900HX, RTX 3080 16 GB (165W), 32 GB DDR4-3200 By Grabthar's hammer............... What a laptop. <cite>DarkRoast posted [p:965032578] in Crypto alr... [t:80019280]...</cite> <quote>Terra wasn't really a bug in as much as it was a pretty obvious flaw. The tldr is that Luna depended on UST being pegged to the dollar, but UST didn't actually have an underlying value backing, instead using "complex algorithms" which turned out to be releasing more Luna coins. The problem is that the more Luna coins you make, the less value they have, which also worsens UST's value. Ultimately it becomes a self-perpetuating death spiral. They initially tried to peg UST with bitcoins but that didn't work, so they made more Luna. --- Lenovo Legion 7 - Ryzen 5900HX, RTX 3080 16 GB (165W), 32 GB DDR4-3200 By Grabthar's hammer............... What a laptop.</quote> ... Copied to Clipboard!
Topic List	Page List: 1