Kevin Zhou, co-founder of Galois Capital, discusses a crazy week in the world of algorithmic stablecoins that saw USDN de-peg from the dollar and Terra unveil plans to create a new liquidity pool on Curve to strengthen UST. Show highlights:

• how USDN and Waves works
• what made USD de-peg
• why Kevin thinks algorithmic stablecoins fail so often
• what Kevin thinks about backing UST with BTC
• how 4pool works in the context of Curve Finance, 3pool, UST, Frax Finance, and Redacted Cartel
• why Kevin believes Anchor is the reason UST could de-peg
• what might happen to Terra and the crypto market writ large if UST were to de-peg
• why lowering yields on Anchor could depress LUNA’s price by 8x
• how UST and LUNA redemptions work

Thank you to our sponsors!

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021

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OnJuno: https://onjuno.com/

Galaxis: https://galaxis.xyz/

Episode Links

Kevin Zhou

• LinkedIn: https://www.linkedin.com/in/kevin-zhou-82938324/

• Galois Capital: https://twitter.com/Galois_Capital

UST

• Proposal

• https://agora.terra.money/t/ust-goes-interchain-the-4pool-and-redacted-cartel/5648

• Why Terra would want to implement 4pool (in the context of the curve wars)

• • https://twitter.com/CryptoHarry_/status/1510244225304117252
• Do Kwon on trying to make DAI less relevant
• • https://twitter.com/stablekwon/status/1511017532764803078
• FXS price jump
• • https://www.coindesk.com/markets/2022/04/04/frax-finances-fxs-jumps-as-terra-introduces-stablecoin-pool-4pool/
• Galois Twitter threads
• • https://twitter.com/Galois_Capital/status/1511455703642394628
  • https://twitter.com/Galois_Capital/status/1511198930951938049
• UST vs LUNA market cap risk
• • https://twitter.com/0xHamz/status/1506372692005593090
  • https://twitter.com/Galois_Capital/status/1511198930951938049
  • https://twitter.com/Galois_Capital/status/1507651829366145030
• Why curve wars matter
• • https://twitter.com/JackNiewold/status/1511484763630194699
• Terraform Labs’ CEO Do Kwon’s appearance on Unchained
• • https://www.youtube.com/watch?v=NMRbP_b4JXM
• Anchor
• • https://medium.com/@_0xfr/anchor-protocol-how-the-dev-team-rigged-liquidations-a188fb87a99f

USDN

• Recap of Waves x Alameda Drama
• • https://thedefiant.io/waves-ftx-ponzi-accusations/
• OG thread pointing out Waves market manipulation
• • https://twitter.com/0xHamz/status/1509581295621451779
  • https://twitter.com/0xHamz/status/1502381061925261312
• Waves founder blaming Alameda
• • https://twitter.com/sasha35625/status/1510589983920656385
• Governance proposal to kill Alameda’s short
• • ​​https://unchainedpodcast.us19.list-manage.com/track/click?u=0085a41334b3edf854fd51f9b&id=2fb7761d5b&e=3c1178619e