4 ms·

UST, a stable coin not even pretending to be backed by the very thing it was pegged to fails. Unlike USDT, USDC or GUSD, there was a documented plan of attack t

UST, a stable coin not even pretending to be backed by the very thing it was pegged to fails. Unlike USDT, USDC or GUSD, there was a documented plan of attack to take UST down 6 months ago, someone just raised enough capitol to execute it.

deleted 4y ago
[deleted]
djbusby 4y ago
Can you point to the docs? That seems an interesting read.
- syncsynchalt 4y ago
  Might be referring to https://twitter.com/freddieraynolds/status/1463960623402913797 https://twitter.com/freddieraynolds/status/14639606234029137...
- SemanticStrengh 4y ago
  What's interesting is that Do Kwon(the founder) blatantly insulted the researcher at the time.. don't have the link but google it, it's on twitter
phire 4y ago
While there was a proposed attack, there is no evidence it (or any other attack) was executed. Which would be weird. Attacks on blockchains usually have detailed analysis within days, the blockchains are public and any evidence would be right there for people to examine. All evidence is that UST simply collapsed on under it's own weight because it's algorithmic nature was never stable. As soon as the price of LUNA started falling, it created a feedback loop which drove the price of LUNA to zero, destroying the very thing backing UST.
- trixie_ 4y ago
  Yes the attack was a loophole in the algorithm not the blockchain itself.
  - phire 4y ago
    Yes, but the (alleged) attack on the algorithm would have happened on blockchain, and would have been recorded as transactions in the blocks. Ironically, some attacks on blockchains themselves (like 51% attacks) are actually harder to analyze, because part of the evidence lives in blocks that were deliberately orphined from the blockchain, and the p2p network doesn't have any incentive to share those blocks. I've analyzed such attacks and you actually have to examine the caches and logs of nodes that were running at the time to find evidence.
    - cuteboy19 4y ago
      The (nonexistent) attack could have been conducted over exchanges though
      - phire 4y ago
        It requires taking out loans from Anchor Protocol (on the chain) and using the UST to LUNA seignorage mechanism (also on the chain)

deleted 4y ago

[deleted]

djbusby 4y ago

Can you point to the docs? That seems an interesting read.

syncsynchalt 4y ago
Might be referring to https://twitter.com/freddieraynolds/status/1463960623402913797 https://twitter.com/freddieraynolds/status/14639606234029137...
SemanticStrengh 4y ago
What's interesting is that Do Kwon(the founder) blatantly insulted the researcher at the time.. don't have the link but google it, it's on twitter

phire 4y ago

While there was a proposed attack, there is no evidence it (or any other attack) was executed. Which would be weird. Attacks on blockchains usually have detailed analysis within days, the blockchains are public and any evidence would be right there for people to examine. All evidence is that UST simply collapsed on under it's own weight because it's algorithmic nature was never stable. As soon as the price of LUNA started falling, it created a feedback loop which drove the price of LUNA to zero, destroying the very thing backing UST.

trixie_ 4y ago
Yes the attack was a loophole in the algorithm not the blockchain itself.
- phire 4y ago
  Yes, but the (alleged) attack on the algorithm would have happened on blockchain, and would have been recorded as transactions in the blocks. Ironically, some attacks on blockchains themselves (like 51% attacks) are actually harder to analyze, because part of the evidence lives in blocks that were deliberately orphined from the blockchain, and the p2p network doesn't have any incentive to share those blocks. I've analyzed such attacks and you actually have to examine the caches and logs of nodes that were running at the time to find evidence.
  - cuteboy19 4y ago
    The (nonexistent) attack could have been conducted over exchanges though
    - phire 4y ago
      It requires taking out loans from Anchor Protocol (on the chain) and using the UST to LUNA seignorage mechanism (also on the chain)