Select observations of the day:
Luna situation: prevailing peg pressure on $UST from its current supply overhang is rendering severe dilution of $LUNA. The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads. Proposal to increase the amount of UST that can be swapped for Luna per day by four times, this would increase how quickly the supply of Luna could be expand. Proposal to burn $1.4B UST and stake 240M LUNA to ‘stop the bleeding’ - source
Billions of Luna minted as supply grows 20-fold, from 346M to 7.1B, in four days. Binance Futures to delist coin-margined LUNA perpetual contracts if price goes below 0.005 - source - tweet
Anchor Protocol contributors proposed reducing yield from 4% to 19.5% on UST deposits in an effort to make its yield reserves more sustainable - source
Bitcoin dropped as low as ~ 25k, ETH to 1700. Luna down to sub 1 cent. Stonks down, commodities down, precious metals down, treasury bonds down, markets overall bleeding. US Dollar index up
Janet Yellen: “This week we have had a real life demonstration of the risks from stablecoins” + SEC said to be investigating - source - source
$USDT lost its dollar peg down to $0.941 related to dramarama with Terra's $UST
Case study: Justin Tron $USDD mining is live with 40% APR - source
Follow up from story from March: Fir Tree Capital Management was shorting stablecoin Tether amid regulatory scrutiny and fears over ties to the Chinese debt market - source
Plus more, as always. The saga continues. Many questions as to how far reaching the fallout from this will be
- Time moves differently in crypto. Crypto is an intricate game filled with various players operating across multiple time frames and with varying agendas. Day in, day out, the pieces are moving all across the board. Sometimes for the better and sometimes for the worse. Here’s a small glimpse of what has happened so far today in our little crypto bubble -
Chain News:
Do Kwon, the CEO of Terra creator Terraform Labs, was one of the pseudonymous co-founders behind the failed algorithmic stablecoin Basis Cash, Ex-Terra Colleagues Say - source
The prevailing peg pressure on $UST from its current supply overhang is rendering severe dilution of $LUNA. The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads. Proposal to increase the amount of UST that can be swapped for Luna per day by four times. This would increase how quickly the supply of Luna could be expanding. Also to burn $1.4B UST and stake 240M LUNA to ‘stop the bleeding’ - source
Billions of Luna minted as supply grows 20-fold, from 346 million to 7.1 billion, in four days- source
Rekt.news on collapse of Luna - source
Binance Futures to Delist Coin-Margined LUNA Perpetual Contracts and Update the Leverage & Margin Tiers for USDT-Margined LUNA Perpetual Contracts - source
Bitcoin realized losses 2nd heaviest in history - source
Contributors to the Terra-based Anchor Protocol have proposed reducing the yield from 4% to 19.5% on UST deposits in an effort to make its yield reserves more sustainable - source
Transaction volume of Curve on the Ethereum chain today exceeded $5.8 billion, setting a record for the highest single-day transaction volume in history - source
Tether (USDT) coordinating a chain swap to transfer USDT assets from Tron’s TRC-20: One billion USDT to the Ethereum blockchain, 20 million USDT to Avalanche - source
$USDD mining is live now with 40% APR - source
Citadel Securities, BlackRock, Gemini Social Media Accusations/Conspiracy Theories of Involvement With UST Collapse - source
Cosmos DEX Osmosis community publishes proposals to de-risk UST - source
Stablecoin $USDD goes live on Multichain. Bridge $USDD among BitTorrent Chain, Ethereum, Fantom and Avalanche - source
Zcash will activate NU5 and say it is the largest upgrade in history. The efficiencies built into this upgrade make possible for the private, trustless digital cash payments on mobile phones - source
Symbiosis Finance is partnering and integrating 1inch to enable the best price discovery for cross-chain swaps - source
Space Swap launch on Evmos mainnet, with airdrop and whitelists for early liquidity providers in Space Swap before farm launching - source
The Nervos Layer 1 - Major Protocol Upgrade "Mirana" has arrived - source
Curve wars all over again on Astar. The Starlay war - source
Shockwave Alpha- first major mainnet upgrade since Supernova launched in Nov 2021 - is live. New features that will further cement Secret Network as the privacy platform for Web 3 - source
Drift Protocol - The core developers are still investigating a technical issue that was revealed due to extreme volatility on the LUNA market - source
Bifrost Launches Rainbow Boost Program, First Raindrop Airdrops to Open Soon - source
PancakeSwap governance proposal set to cap CAKE supply at 750M, adding additional uses for the locked CAKE: weighted voting, increased mining rewards, increased IFO distribution, etc - source
Metaverse News:
Madonna reveals fully nude NFTs and a shocking 3D model of her vagina - source
Sorare, the maker of an NFT fantasy soccer game, will launch a Major League Baseball fantasy game this summer - source
Forgotten Runes Wizards & Warriors: WARRIOR MINT - May 11 - source
News:
Bitcoin's current price means that Tesla and MicroStrategy are both down on their investments - source
Cryptocurrency Trader "Coin Signals" Sentenced To 42 Months: DOJ - source
Australia’s first Bitcoin and Ethereum spot ETFs go live - source
Chinese high court rules Bitcoin has economic value and is legally protected - source
Cathie Wood's Ark Invest Grabs More Than Half a Million Coinbase Shares as Exchange's Stock Plummets - source
Germany's Finance Ministry said private individuals won't have to pay taxes when selling BTC or ETH if they have held the assets for more than a year - source
Raises:
6th Man Ventures is raising $145 million for a second crypto fund - source
BVNK, a banking and payments platform targeting businesses seeking crypto integration, has raised $40 million in Series A funding. Will use the funds to accelerate its push for regulatory licenses and expand into new markets, such as the U.S - source
Soluna Holdings (SLNH), a data-center developer that uses renewable energy for computing, arranged $35 million in project financing from private equity firm Spring Lane Capital for building more facilities - source
NFT infrastructure startup Paper raises $9.3M seed round. The round was co-led by Electric Capital and Initialized Capital - source
Lighthouse Raises $7M to Be the Search Engine of the Metaverse. Lighthouse allows users to search through a database of all the active events going on in metaverse games like Decentraland and The Sandbox, while also being able to search for where users themselves are in these virtual worlds - source
Nansen - APY.vision Seed Investment and Data Integration - source
New Listings:
Dusk Network (DUSK) Gets Listed on KuCoin on May 13th - source
Celestial (CELT) Gets Listed on KuCoin on May 13th - source
MovieBloc (MBL) Gets Listed on KuCoin on May 13th - source
The SRM/USDT trading pair is now available in the Crypto.com Exchange
New ETH trading pairs are now available in the Crypto.com - CAKE, SNX, JASMY and NEO
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