Emergency measures for restoring Terra peg

Does this work? Is anybody trying this?

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I successully recoved my liquidated capital with this method.

Did you recover the full value?

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yep took a while because of congestion on solana and terra but otherwise got the full amount back in usdc on sol by the end of it.

Sorry to ask a dumb question, but why would you need to do it ā€œnā€ times and not just one time. Is it limited on the amount per transaction?

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I think because each time you make a few breadcrumbs. Take a whole lot of times to get enough crumbs to be worth a whole loaf of bread.

*And, I think, if the market direction changes against you during this, you can also lose a bit, as itā€™s not instant.

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amount of liquidity in the pool your using.

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better a exit than no exit, and if spread is tightening it means that peg is tightening too.

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Iā€™m all for voting for anything that can help Terraā€™s ecosystem. Anchorā€™s high yield I knew couldnā€™t sustain itself forever & even taking 5% interest is still much better than any bank. I am keeping the faith in Terra. Hopefully within the next week or so, UST can get itā€™s peg back. As for LUNA, it may not recover to ATH, but if it does itā€™s job with keeping UST stable, then the protocol is working.
I donā€™t have a fajillion ANC to make much of an impact on the vote. But every vote matters.
Letā€™s make Terra great again. This will just be a large bump in the road on a much larger time scale.

But you can use only a small amount of luna right? I tried doing it on Solana in the link you posted and it says price impact too high. Were you doing it in small chunks?

yeah, in blocks of 1000 first then 100 once liquidity was drying up.

use this to find liquidity on ethereum for larger bags, youā€™ll have to pay the tx fee but hey if your bag is big enough it shouldnt factor as a concern. liquidity might be low there as well so just make sure you got a good spread (like 25-50% arb) so you end up in net real profit.

atebites was really helpful getting me setup to do this, but unfortunately either my timing was bad (luna dumping again) and/or the other protocols somehow got wind and pulled their bids.

1inch shows really bad rates as the size increased and fees eat up small amounts, 100 usd equiv seemed promising on orca or jup, but now looks like a loss too.

Again, might work differently when luna stabilizes (if it ever does, and for how long, so timing is an issue).

It still looks profitable on eth but not on Solana. But the spread is whatā€™s worrying me. The minimum received would put me at a loss. I didnt lose anything in liquidations so Iā€™m not concerned about making money back. I just want to protect my capital.

same here. but yeah, the 1inch spreads result in a loss, so itā€™s no good. i tried all kinds of sizes they all generate a loss.

my test 100 ust just finally got back into my wallet as 73 ust. granted my timing was bad, but thatā€™s the real issue, you have to time this, and getting that right is a lot of luck. maybe if and when luna craters yet again, then recovers, thereā€™s a quick way to move a few hundred at a time, but trying to move size looks hopeless. as you go up in size they kill you on the swap rates.

The last few hours the UST rate of 0.6x at CEXes, looking at their order books, looksā€¦not unhealthy. At times more demand on buy low side than sell high side (well, still a fat loss, butā€¦).
Itā€™s now at 0.70.
Where Iā€™m looking 860M sell orders up to 0.75. 890M buy orders down to 0.65.

Sort of balanced, as itā€™s been, with a slight (very slight and fleeting) upwards bias.

In other words, the bottom that had fallen out last night is now back in.

Will it ever recover I donā€™t know, but I think thereā€™s a real chance it may go a bit higher from here still. So at least recovering of 2/3s of your UST principal is, at the moment, doable. Not great, but, well, if you treat UST as an ā€œinvestmentā€ vs. ā€œmoneyā€, given what happened itā€™s actually not bad. (Or may be thatā€™s the optimist in me with rose colored glasses on talking.)

If everyone stops rush selling, we may get it up to 0.9x levels, how it was holding on steady for quite a while on Monday. If depositors can get 90% of their principal back, presuming they had it on Anchor for six months, thatā€™s about breaking even. Not a bad outcome given what went down. So while I may be wrong, I think that steady hands may come out ahead here, not rush selling by letting the UST peg recover and then slowly, gradually selling (if at all). The attack I think is over by now. The attacker made 100s of $ Millions. The only thing thatā€™s keeping the UST peg down is fear. Fear is an emotion. If everyone would just take a chill pill and relax, the peg would recover in no timeā€¦

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I still have bLuna which I used to buy ANC. If both AND/UST and LUNA/UST prices fall because of all the dumping sounds like I should get rid of all my staked ANC and fast burn my bLUNA to stay in UST???

Itā€™s best no not be lending anything right now to avoid liquidation. Yesterday I paid back all my loans, but I still keep bLUNA - not lending it tho.

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Wouldnā€™t you rather have been liquidated with a 70 UST bLuna though?

Why would I want to be liquidated at all?

This proposal is the opposite of what we need right now. When a currency loses value the right play is to increase rates, not lower them. The best way to save the peg is to make sure people want to hold UST, and the most effective way to do that is to pay a good rate. Lowering Anchor rates would be a massive mistake, and remove the greatest incentive to hold UST. With Anchor rate being reduced there would be billions more UST exiting compared to if the rate remained, and the situation would only get worse.

With the recent outflows from Anchor we are getting back to a level of deposits which are much more sustainable, and the yield reserve will last much longer now. There is no need to do anything drastic and ruin the trust that Anchor will continue to pay a stable rate on UST. Many people got into UST because of Anchor, and we need Anchor rates to be good if we want at least some of those people to stay.

I am against this proposal, and belive that voting it though would not only have the opposite of the intended effect, but perhaps even be the thing that ruins all chances of recovery. Do not vote in favor of this!

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