EP 58: Analysis of UST (TerraUSD) | Algo Stablecoin on Terra

08/01/21 • 17 min

Many of you have been asking for an episode on UST, the algo stablecoin on the Terra network. So today, we take a dive into how UST works, how it is created, analyse its stability, and more.

Timestamps:

0:00 – Intro & Overview

0:51 – UST vs LUNA

1:14 – Classifying Terra

1:50 – $LUNA

3:05 – UST Creation

4:34 – 3 factors affecting Stability of UST

8:37 – Analysing UST Stats

10:25 – Analysing the Terra Ecosystem

12:06 – 4 Opinions

17:10 – More resources & how to support us!

Want more in-depth content?

1) Support us on our Patreon: www.patreon.com/economicsdesign

2) [Textbook] The Economics and Math of Token Engineering and DeFi https://book.economicsdesign.com/

3) Academy: https://academy.economicsdesign.com/

4) New research site & dashboard: https://econteric.com/

5) Newsletter: https://economicsdesign.substack.com/

Connect with us and the ED community:

Discord – https://economicsdesign.com/discord

Twitter – https://twitter.com/econsdesign

Reddit – https://reddit.com/u/economicsdesign

Many of you have been asking for an episode on UST, the algo stablecoin on the Terra network. So today, we take a dive into how UST works, how it is created, analyse its stability, and more.

Timestamps:

0:00 – Intro & Overview

0:51 – UST vs LUNA

1:14 – Classifying Terra

1:50 – $LUNA

3:05 – UST Creation

4:34 – 3 factors affecting Stability of UST

8:37 – Analysing UST Stats

10:25 – Analysing the Terra Ecosystem

12:06 – 4 Opinions

17:10 – More resources & how to support us!

Want more in-depth content?

1) Support us on our Patreon: www.patreon.com/economicsdesign

2) [Textbook] The Economics and Math of Token Engineering and DeFi https://book.economicsdesign.com/

3) Academy: https://academy.economicsdesign.com/

4) New research site & dashboard: https://econteric.com/

5) Newsletter: https://economicsdesign.substack.com/

Connect with us and the ED community:

Discord – https://economicsdesign.com/discord

Twitter – https://twitter.com/econsdesign

Reddit – https://reddit.com/u/economicsdesign

Previous Episode

Flashbots and MEV are a huge problem for DEXs. Here's why you should care. | DeFi Markets

Flashbots & Miner-Extractable Value are problems faced by decentralised exchanges (DEXs). In this episode, we explain what flashbots and MEV are all about and what solutions there are. We also explain in-depth the risks of ETH like front running, and several design flaws in DEXs.

This recording was extracted from our free-to-join Discord lounge sessions. We host lounge sessions on Sundays, where we dive deep into such topics, and you get the chance to ask any questions live. We invite noteworthy guest speakers too. Do join our Discord channel to engage with the community! :)

Discord link: https://economicsdesign.com/discord

Timestamps:

0:00 – Introduction to MEV & Flashbots

0:24 – Layer 1 infrastructure comparison: BTC vs ETH

1:36 – 51% Attack vs Front Running vs Forking

3:49 – Flashbots explained

7:06 – MEV (Miner Extractable Value)

8:12 – Other arbitrage opportunities

8:57 – Solutions to MEV

10:30 – 5 design flaws in DEXs

12:57 – Front Running & information Assymetry

14:55 – Impact of Economic Rent on DEXs

16:18 – Why Flashbots & MEV are a big problem

Want more in-depth content?

1) Support us on our Patreon: www.patreon.com/economicsdesign

2) [Textbook] The Economics and Math of Token Engineering and DeFi https://book.economicsdesign.com/

3) Academy: https://academy.economicsdesign.com/

4) New research site & dashboard: https://econteric.com/

5) Newsletter: https://economicsdesign.substack.com/

Connect with us and the ED community:

Twitter – https://twitter.com/econsdesign

Reddit – https://reddit.com/u/economicsdesign

Discord – https://economicsdesign.com/discord

Next Episode

EP 59: Another Stablecoin? | All-Weather Stablecoin Gyroscope

Another stablecoin? All weather stablecoin with Gyroscope. Always stable.

Please consider donating to help fund these educational videos: 0x6da9AAa73D39F3880119Fd20e6d6a2f65Dd44ABe or tip us at https://www.patreon.com/economicsdesign

00:00 Intro & Overview

03:58 Gyroscope Collaterals

09:16 Minting Gyro Dollar

10:42 Mechanisms To Maintain $1 Peg

11:58 Earning Yields

12:53 PAMM vs Underlying Assets

13:25 Gyroscope vs USDC

14:24 SAMM

16:06 Lines of Defence

14:55 Gyroscope vs FEI

21:45 PAMM vs SAMM

22:43 Designing Governance

26:23 Accruing Cashflow

27:16 Third Party Liquidity Providers

28:49 Is Gyro Dollar a Security?

29:18 Opinions

29:56 More Resources & How to Support Us!

Want more in-depth content?

1) Support us on our Patreon: www.patreon.com/economicsdesign

2) [Textbook] The Economics and Math of Token Engineering and DeFi https://book.economicsdesign.com/

3) Academy: https://academy.economicsdesign.com/

4) New research site & dashboard: https://econteric.com/

5) Newsletter: https://economicsdesign.substack.com/

Connect with us and the ED community:

Discord – https://economicsdesign.com/discord

Twitter – https://twitter.com/econsdesign

Reddit – https://reddit.com/u/economicsdesign

Spotify Podcast – https://spoti.fi/3wzDbXt

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Apple Podcasts – https://podcasts.apple.com/gb/podcast/economics-design/id1492490959

*Disclaimer*

This is not financial advice. Information shared is found publicly on the internet. All analysis and opinions are my own. The purpose of sharing the information is for education and knowledge sharing. The information shared is accurate at the time of recording. Purchasing cryptocurrencies poses a considerable risk of loss. Past performance does not indicate future results.

#economicsdesign #tokeneconomics #tokenomics #DeFi