A calm warning

Terra's stablecoin UST has dipped a second time in 48 hours and is now trading at 78 cents again. An implosion of this is looking likely as the Luna foundation Guard spent all of their reserve BTC yesterday trying to repeg UST. I don't know what they can do now - maybe Do Kwon still has some favors and tricks he can deploy.

Anyways just this week Anchor held about 14B UST and had lent out 3B UST. If we add up all of the stablecoins in the top 100 they total up to be $156B, UST is around 13B. I don't know enough about how truly interconnected or separate UST is from the whole ecosystem but it has a significant marketcap. IMO I'm gonna eat the withdrawal and deposit fees for a part of my portfolio to make sure nothing crazy is triggered.

I already ate a loss trying to get out of UST and I'm glad I wasn't locked into a LP pool like many were. We're all watching LUNA and UST collapse as if they won't affect the ecosystem. The final straw for the crash in 2017 was Bitconnect imploding in a similar fashion. Since UST is a stable coin used in may defi activities and a lot of CEX's have it will definitely have contagion effects if it goes to 0. I don't know how bad it might be, it might be nothing but I'll take my 1-2% withdrawal fees just to have my peace of mind.