100% of the Votes Cast by the Curve Finance Community Are For the Proposal
The proposal further explains that UST’s value has dropped by 90%, and the Terra ecosystem has roughly $9 billion worth of bad debts. Additionally, it is clear that there is no ‘prospect of sustainable recovery of the peg.’
Furthermore, the proposal states that it is not yet clear ‘how exactly weaknesses were exploited and if these vulnerability vectors will persist even in the case of a successful bailout.’
The current situation also creates two problems for Curve Finance.
- Curve pools could be bribed with the sole intent of attracting exit liquidity for UST, thus soft-rugging new liquidity providers.
- Empty pools could consequently be occupied by entities seeking to extract value from the Curve DAO through CRV emissions. A liquidity provider could then proceed to only farm CRV and constantly vote or bribe the pool and not provide any value to the DAO in liquidity or volume. This scenario would be troublesome since UST has depegged significantly, allowing the malicious entity to deposit liquidity with an uneven distribution. This will prevent other LPs from entering the pool due to high slippage and/or provision of UST exit liquidity for the malicious entry.
At the time of writing, 100% of the votes cast by the Curve Finance community are for the proposal. Voting is also open for the next six days.
TerraUSD (UST) hits a New Low of $0.0778
TerraUSD (UST) is trading at $0.088, signifying a 91.2% depegging from the $1 mark at the time of writing. Earlier today, the UST stablecoin hit a new low of $0.0778.
The chart below, courtesy of Coinmarketcap.com, further provides a visual cue of the severe situation surrounding the depegging of UST since the beginning of this month.
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