Key Takeaways 

• Tether (USDT) briefly lost its dollar peg this week, dipping as low as US$0.95 on Thursday as the collapse of LUNA and UST shook the market’s confidence. However, the $1 peg was restored by Friday. At the time of writing, USDT is trading slightly under $1, at $0.9989.

• Celsius reportedly removed at least $500M from Anchor during the recent UST turmoil. Founder Alex Machinsky took to Twitter to deny recent rumours of losses as a result of market volatility.

• UST’s depegging continued this week, with LUNA falling to below $0.01. Do Kwon published a Terra Ecosystem Revival Plan over the weekend which aims to lay out the way forward for the ecosystem.

• This week’s price index was negative at -33.72%, while the volume and volatility indices were positive at +67.25% and +230.03% respectively.

Highlights

• Terra, Luna, and UST: How we got here

• Lido Warns Leveraged Traders at Risk of Liquidation as 'Staked Ethereum' Loses Peg

• Lido Deploys Additional Curve Pool to Improve Liquidity Around Bonded ETH Peg

• Terra fork won't work, according to Binance CEO

• UST’s Do Kwon was behind earlier failed stablecoin, ex-Terra colleagues say

• Tether to move over 1B USDT from Tron to Ethereum and Avalanche

• Crypto lender’s Tether loan halved

• Blockchain analytics provider Nansen integrates and invests in DeFi data app APY.vision

• Aurora launches $90 million developer fund to boost DeFi on NEAR Protocol

• Over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard

• Blizz Finance protocol drained after Chainlink pauses LUNA oracle

• Trader may have lost $9M in exit from USDT

• Abracadabra enables leveraged yield farming on Stargate

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Top Token Metrics

*Top DeFi tokens based on CoinGecko

Source: CoinGecko

DeFi Index Tokens

*DeFI index tokens: AAVE, ANC, BAL, CAKE, COMP, CRV, CVX, FXS, JOE, LDO, LINK, MKR, OSMO, REN, SNX, SPELL, SUSHI, UNI, VVS, YFI

Notable Events

• Anchor contributors consider cutting UST yield to 4% from 19.5%

• Lido Increases Liquidity Incentives as stETH Trades at Discount to ETH

DEX Metrics

* % change is based on the difference between two consecutive weekly periods

** Omitted due to incomplete source data

Source: CoinGecko, DeFi Llama, Nomics

Notable Events

• PancakeSwap governance proposal set to cap CAKE supply at 750M

Thank you for reading! We hope you find our Weekly DeFi Update enlightening!

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