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The truth about the UST affair....

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Rank: Carlos Matos
26 posts
Joined 2022-04-30
By ZARKO on May 12, 2022, 03:05 ET Post #1


The depeg would therefore come from an attack by Citadel and Blackrock, two of the biggest hedge funds in traditional finance.

How would they have proceeded?

1. Borrowed 100K Bitcoin
2. Selling 25K Bitcoin to buy UST
3. Sale of the remaining 75K Bitcoin and dump of 300M UST on Curve Finance, causing a panic among the retails

Following these events, the LFG foundation would have reacted by selling BTC from their treasury to buy UST and allow it to return to the peg

However, hedge funds would have anticipated this reaction by opening shorts on #BTC and #LUNA, allowing them to make big gains

Meanwhile, the panic spread to the rest of the market: many retails rushed to convert their UST bag into $USDC/$USDT, which eventually caused a 50% withdrawal of liquidity on
@anchor_protocol

These movements put enormous selling pressure on the UST, and all in a very short period of time

In total, more than 5,000 million USTs were withdrawn from Anchor in 48 hours and will most likely be dumped later

According to some rumours, this whole mess was the result of a decision by the hedge funds Citadel and BlackRock.

Note that BlackRock has recently invested in the USDC.

Is this not the best way to kill one of the main competitors to the USDC?

Is it just a coincidence?

Zarko

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