RE: UST: Incompetence, Greed, or Both?
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I think that was booth.
Do Know it was greedy, thinking he discovered a new concept that would never have failed, even when some people started to talk how UST can be "easily" depegged and start a death spiral.
LFG used VC initial investment to create a FOMO around Luna and UST that attracted a lot of users to invest on it.
The Incompetence part it was the fact that they allowed UST create more than 100% LUNA debt and when the crash started the "solution" it was not allowing more LUNA to be printed making LUNA supply over 7 trilions.
Since they are not a decentralized project, when the UST depegged started they should take more quick actions to repeg the UST and don't let this death spiral continues.
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Seems like you didn't read my post because I said about a dozen times that it is a decentralized project.
How?
If UST project was really decentralized, LFG would be a DAO where a smart contract would trigger the need of actions to sell the LFG assets to keep the UST peg. However, in this case was some people that need to do everything and will not send the assets through a lot of wallets and each transaction let some part behind.
Another thing, during the problem the blockchain rule it was changed to be able to print more LUNA per day. In a true decentralized project, this needs to be voted and have more than 51% of the votes.
Instead, to start to print an infinite Luna's if they used the LFG assets correctly to buy back UST and keep the PEG much of people would not do a desperate conversion to Luna and Luna will not go to almost 0$.
Since they halted the chain when there was almost no return possible, maybe they should halted the chain when everything started to give them time to do everything.
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Hard disagree with everything you just said.
This is magical thinking.
That's a magical fairytale land where we can create a decentralized smart contract that's going to buy and sell assets across dozens of exchanges (centralized and decentralized). That tech doesn't exist. It never has existed, it very well may never exist.
So just going to rehash the same argument to answer the second question as well?
LUNA was doomed as soon as they allowed the debt ratio to go above 50% with zero cap to the upside.
There was no saving it.
LUNA leveraged USDT to get an x100 gain, and this is what they get.
Do Kwon basically tricked venture capital into parking their money on UST to get the 20% interest rate.
This trickery pumped the price of LUNA.
UST holders thought their money was safe.
The solution was to not trick billions of dollars to buy and hold UST.
A cap on the debt ratio would have prevented this entire thing from happening.
The peg on UST should be been broken as soon as the debt ratio was over 100%.
Then Luna wouldn't have crashed to zero and the debt could actually be repaid.
We are sharing opinions so you can disagree. This is not a problem for me, and it is away to learn more.
To centralized exchanges, I know that is not possible. However, using decentralized exchanges available in a chain, I know that is possible. A lot of yield farms or baby tokens already use it at least to interact with one DEX, but I think this can be changed to interact with more (the last part it as guess).
In my first comment, I mention all this related with debt ratio
You are right, saying the deep problem was the debt ratio.
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It wasn't centralized. Kek kek kek.