UST Depeg Following

May 23,2022
Terra Launches Vote on New Proposal to Burn the Remaining UST and Cross-Chain Liquidity Incentive Tokens in the Community Pool Kingdata has learned that on May 22, a new Terra proposal Prop 1747 was released, which plans to destroy the remaining USTs in the community pool as well as the cross-chain liquidity incentive USTs. Prop 1747 will close in 5 days. As previously announced, Prop 1188, "Burn the remaining USTs in community pool + cross-chain liquidity incentive USTs," passed but was not implemented due to technical reasons that caused the planned destruction to exceed the existing number of USTs.
This indicator provides follow-up on the depg of Terra's stablecoin UST on May 8th. Terra's stablecoin UST briefly lost its peg to the U.S. dollar on May 8th, dipping as low as $0.985. The depeg event came after a series of multi-million dollar UST selloffs as one account traded about $85 million worth of UST for USDC on Curve Finance, while another user reportedly sold $108 million worth on Binance. UST posted a slight recovery shortly after Terraform Labs CEO Do Kwon posted a tweet calling out the stablecoin's critics.
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