UST Depeg Following

May 23,2022
Terra Fails to Reenable IBC Due to Technical Issues KingData News: Terra tweeted that "Prop 1299 to (re)enable IBC has passed but did not successfully execute due to technical issues. We are aware of the issues associated with this proposal and are working on getting the IBC channels open for users as soon as possible." During UST’s depeg, IBC channels were closed (but not disabled) as a stop-gap measure to prevent impermanent loss being incurred on UST and LUNA pools on Osmosis and other IBC DEXs. As a result, users were then unable to transfer these assets across IBC chains.
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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