2 years ago
Helene is simply a U.S. markets newsman astatine CoinDesk, covering US economics, stablecoins, and Wall Street. She is simply a caller postgraduate of New York University's concern and economical reporting program.
Just 2 months ago, Do Kwon, the laminitis of the Terra blockchain, tweeted to his followers that DAI, a five-year-old stablecoin, would succumb to the fast-rising maturation of Terra's stablecoin, UST.
Fast guardant to this week, and it's UST, not DAI, that needs a lifeline.
The algorithmic stablecoin hosted by the Terra Network lost its dollar peg twice this week, falling to arsenic debased arsenic 23 cents connected Wednesday. As a stablecoin, the terms of UST is expected to support a worth of $1 astatine each times.
Because of that terms drop, DAI, which is built connected the Ethereum blockchain, concisely surpassed UST arsenic the biggest stablecoin by marketplace capitalization based connected a decentralized concern (DeFi) protocol, and the 4th largest of each stablecoins.
DAI, which is maintained by the decentralized concern protocol MakerDAO, presently has a marketplace headdress of $7.54 cardinal (with a terms holding accelerated to the $1 peg), portion UST was concisely astatine $6.43 cardinal connected Wednesday, according to information from Messari, earlier rebounding to $12.9 cardinal successful the afternoon.
But there’s inactive a agelong mode to spell earlier the algorithmic stablecoin reaches its archetypal marketplace headdress of astir $18 billion, which is what it was earlier the crash that started 3 days ago.
In the meantime, the schadenfreude connected Twitter was palpable connected Wednesday:
Representatives of Do Kwon person not responded to a petition for remark arsenic of property time.
DAI is simply a dollar-pegged stablecoin, meaning that its worth is backed by dollars arsenic opposed to utilizing on-chain mint-and-burn mechanics. But some stablecoins run successful decentralized concern (DeFi) protocols, which is wherefore they are often compared.
DAI is maintained by MakerDAO.
Do Kwon has said helium was moving connected bringing the UST stablecoin backmost to a $1 value, and tweeted aboriginal Wednesday that helium was moving to "rebuild UST." It was trading astatine 58 cents astatine property time, inactive 33% down implicit the past 24 hours.
For what it's worthy "Do Kwon" was trending connected Twitter connected Wednesday. Here's a smattering of the pile-on:
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Helene is simply a U.S. markets newsman astatine CoinDesk, covering US economics, stablecoins, and Wall Street. She is simply a caller postgraduate of New York University's concern and economical reporting program.
Helene is simply a U.S. markets newsman astatine CoinDesk, covering US economics, stablecoins, and Wall Street. She is simply a caller postgraduate of New York University's concern and economical reporting program.
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