Changes to Terra’s UST and LUNA Farm Emissions
It has been a massive couple of days for the cryptocurrency community that saw a black swan event, leading to a huge depreciation of prices across the board. While StellaSwap has always undertaken a neutral and indifferent approach towards any supported coins, we empathize with affected users and hope that there’s a light at the end of the tunnel🙏
With that in mind, we have decided to stop emissions for both UST and LUNA farms on StellaSwap in the best interest of affected users. This stoppage of emissions does not reflect our views towards UST and LUNA, but rather a safeguard in pursuit of user protection and maintaining the strength of StellaSwap’s tokenomics in this troubling markets.
These changes however, may be temporary if the situation improves down the line. When that time comes, we will seek to update the community on next steps.
Farm Emissions Update
Here’s the details of the changes to Terra farms:
- Affected Farms: UST-GLMR & LUNA-GLMR
- Status: Retired
- Effective Date of Retirement: 14 May | 18:00 PM UTC
Users would still be able to trade Terra assets on StellaSwap.
What Happened to Terra?
TLDR; Terra’s stablecoin, UST, broke its $1 peg and chaos ensues, resulting in the obliteration of the price of its native token, LUNA.
As of this writing, LUNA lost 99% of its value, from a high of over $80 this week to a current low of $0.019. This was due to UST’s broken peg, which was the stablecoin nosedive in value from $1 to a current market price of $0.38.
The reason as to the destabilization of UST can be best summarized through this thread:
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