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Luna had nothing to do with 20% returns TerraUSD yielded 20% returns on anchor Luna gave staking yield. It received a portion of transaction fees off the Terr
by shawabawa3 4y ago
Luna had nothing to do with 20% returns
TerraUSD yielded 20% returns on anchor
Luna gave staking yield. It received a portion of transaction fees off the Terra network, that was what created demand for Luna - if you thought transactions on Terra were going to increase and therefore give increase yield in the future
Of course there simply wasn't enough demand to offset the terrible peg mechanism
- lalaland1125 4y agoAnd where do you think the TerraUSD invested in anchor came from? That TerraUSD all came from people buying Luna and converting it to TerraUSD. The root of demand for the Luna ecosystem was the 20% returns.