FatManTerra alleged on Dec. 6 that the foundation reason for Terra’s UST implosion was Terraform Labs’ (TFL) dumping of over $450 million UST on the open market over three weeks earlier than the ecosystem collapsed.
🧵 New blockchain information reveals the foundation reason for the Might UST depeg. Within the 3 weeks main as much as the depeg, one entity dumped over $450m of UST on the open market. 4 days after their final sale, UST began collapsing.
That entity? None aside from Terraform Labs. Particulars inside. pic.twitter.com/aFfzgpBZ5A
— FatMan (@FatManTerra) December 6, 2022
FatManTerra cited blockchain information collated by an nameless researcher, Cycle_22, whom he stated found the insolvency of Singapore-based crypto lender Hodlnaut.
Terraform bots addresses dumped $1B UST
On-chain proof exhibits that TFL dumped over $1 billion UST by promoting on Curve or transferring to Binance. The researcher was capable of uncover this as a result of all of the transfers originated from the TFL Curve Bot 2 handle that was additionally talked about within the unbiased audit it launched.
FatManTerra says TFL weakened the Curve pool
FatmanTerra tweeted that TFL’s narrative that UST was attacked is fake as a result of the builders weakened the decentralized stablecoin curve pool.
In response to him, the irresponsible dumping of a large quantity of UST inside a brief timeframe diminished liquidity and severely weakened the peg.
In response to FatManTerra, this large dump and the $2.7 billion that TFL eliminated via Degenbox contributed to the full collapse. This meant that TFL and Do Kwon had successfully eliminated all the true {dollars} within the ecosystem, making it not possible for folks to redeem their UST.
Though TFL and Luna Basis Guard just lately launched an unbiased audit to point out it did every thing to redeem the peg, together with spending your entire Bitcoin peg protection fund, the audit signifies that LFG despatched 47k BTC to Leap Crypto, which stays unaccounted for.
The brand new revelation additional provides to the majority of the proof towards Terraform Labs and Do Kwon, who’s at present on the run and is needed in South Korea
