Wolverine vs. Magneto
Is this the death of the algorithmic stablecoin as an asset class?
Around 8:03 AM, Tether tanked -99% to USDT crash and pretended it never happened. Too bad I recorded it on the Blockchain, where it will live forever.
— @CryptoWhale (CryptoWhale) · https://twitter.com/CryptoWhale/status/1524741960979947522
What is the attack surface of my portfolio given the zero-day trade sequence that took down The Terra Luna Ecosystem?
Consequences outside terra after $luna collapse. Thread 🧵
— @DeFi_Made_Here (DeFi Made Here) · https://twitter.com/DeFi_Made_Here/status/1525448525097598979
Is this really like Wolverine vs. Magneto?
📺 https://www.youtube.com/watch?v=1oSVKueQPWY
Over four years ago I was a research analyst at @scalarcapital . The Terra / $LUNA deal came across our desk and I was assigned to it because I was the DeFi guy. Here’s what I had to say about the project. How did we allow it to end up like this?
— @cyounessi1 (cyrus.ismoney.eth 🦇🔊🚬🎨👀) · https://twitter.com/cyounessi1/status/1524910207838699520
If none of this makes sense to you, read below.
About a year ago, Day Traders rejoiced.
They had just liquidated a number of high-profile Hedge Funds by coordinating the rise of AMC over Reddit. For the first time, Day Traders had beat Hedge Funds at their own game using publicly available information.
After some of the most reputable Hedge Funds got liquidated, they had a hearing on the rise of AMC in the Senate. At the hearing Reddit Day Traders defended their ability to profit from holes in the marketplace. Ultimately, the Senate determined that the jungle needed to remain a jungle, rejecting the regulation of speculation in the stock market.
The Return of the Apex Predator
But even jungles have Apex Predators. This weekend, the Apex Predators of Finance - Hedge Funds - enacted sweet revenge on the Day Trading Community. They did it by disrupting the Tokenomics at the core of the Luna Ecosystem.
LUNA To The Earth
What’s Luna? Luna is a stablecoin ecosystem that promised its holders 20% interest. That’s the long and the short of it. Some called a 20% interest rate offer a perpetual motion machine, and they were right, but not for the reasons they may have expected.
On Monday, the revenge for AMC was carried out. The revenge was a coordinated series of trades that were in the works for at least six months. Why six months?
You don’t borrow a billion of BTC overnight. In fact, one can imagine a scenario where the individuals who made the billion of BTC available were some of the same people depegging the Luna from 1 set everything into a spiral on Monday. Some in the community are criticizing Luna’s Management for oversharing their product roadmap; maybe there are some things you don’t want to share in public.
Right now, the Day Trading Community is waking up to the fact that Economies of Scale is the primary factor in Helmer’s 7 Powers thesis on why companies win.
May 11 2022 10:27AM
Don’t believe me?
Revenge = Σ Emotion(1) + Emotion(2) + … Emotion(n)
You learn in psych that there are six human emotions:
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Joy
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Sadness
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Anger
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Surprise
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Disgust
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Fear
Revenge isn’t listed as an emotion.
I’m beginning to think that Revenge is the combination of Fear Disgust Surprise Anger Sadness and the pursuit of Joy all wrapped up into one.
Welcome to the Red Queen’s Race. There are no attacks in finance; merely trades. Trades that win, trades that lose.
Have an opinion?
Let it trade.
- Paul Portesi
1/ ”𝘈 𝘛𝘰𝘵𝘢𝘭 𝘌𝘤𝘭𝘪𝘱𝘴𝘦 𝘰𝘧 𝘛𝘩𝘦 Luna” 🌖 What game was Terra trying to play? Where did the deadly asset-liability mismatch really come from? (Hint: Not Anchor) Was $LUNA simply destined to fail? Mega-🧵..
— @gametheorizing (Jordi Alexander) · https://twitter.com/gametheorizing/status/1526373843908153345