Luna Crash Takeaway🧵
Why no one is talking about one Dapp dominance over whole Terra ecosystem?🤔
Why no one is talking about one Dapp dominance over whole Terra ecosystem?🤔
I am tracking Luna for about a year... it was nice to see its price increase from 10 USD in Aug 2020 to 113 USD in April 2021.
It was nice to see Terra replacing Binance as 2nd largest chain in terms of TVL.
But even then Terra was Scary for me to invest...
It was nice to see Terra replacing Binance as 2nd largest chain in terms of TVL.
But even then Terra was Scary for me to invest...
WHAT WAS THE PROBLEM?
When you were hearing about "Luna", the first thing came to your mind was "UST" & "Anchor"...
Actually for me it was the only thing was coming to my mind about Luna
Anchor was the "Defi Bank" where you could easily gain 19% juicy APR on your stables
When you were hearing about "Luna", the first thing came to your mind was "UST" & "Anchor"...
Actually for me it was the only thing was coming to my mind about Luna
Anchor was the "Defi Bank" where you could easily gain 19% juicy APR on your stables
During the 2021 Bull Market every influencer from left to right was advising Anchor as a low risk investment for your portfolio, even it was boring for lots of investors who were hyped with 800,000% APR of wonderland!
Beginning of the "Bear Market" in Nov 2021, everyone moved a big share of their portfolio to stable coins avoiding more losses, again Anchor and Terra was one of the main investment advices for investors in "Bear Market".
Terra reached 30 bn TVL in April 2022, it was so big that people were talking about Terra over thrown Etherium, becoming the largest blockchain in Defi!
Still it was scary for me!
Still it was scary for me!
Looking at Defilama, I was watching at Terra Ecosystem with 30 bn TVL in dominance of one protocol; Anchor...
I was asking myself what will be happen to Terra if something goes wrong with "Anchor" carrying 65% of total Terra TVL... 65% dominance of one Dapp was crazy to me!
I was asking myself what will be happen to Terra if something goes wrong with "Anchor" carrying 65% of total Terra TVL... 65% dominance of one Dapp was crazy to me!
If you compare protocols diversity and dominance in other chains you will get the point:
Etherium: 279 Protocols/ 14% Maker Dao Dominance
Binance: 386 Protocols/ 42% Pancake Swap Dominance
Etherium: 279 Protocols/ 14% Maker Dao Dominance
Binance: 386 Protocols/ 42% Pancake Swap Dominance
Avalanche: 207 Protocols/
16% AAVE Dominance
Fantom: 228 Protocols/
14% Curve Dominance
Terra: 27 Protocols/
65% Anchor Dominance
For me Anchor & UST were both smart & incredible, however they were everything on Terra... I did not like that!
16% AAVE Dominance
Fantom: 228 Protocols/
14% Curve Dominance
Terra: 27 Protocols/
65% Anchor Dominance
For me Anchor & UST were both smart & incredible, however they were everything on Terra... I did not like that!
UST depegged and whole Terra crashed in 24 hours... it should not be like that...
As if Daomaker crash, does not bring down the Etherium!
As if Daomaker crash, does not bring down the Etherium!
TAKEAWAY
After Luna crash;
EVERYONE:
Dear investors, please diversify your portfolio and do not go all in one protocol...
NO ONE:
Dear Blockchains, Please diversify your TVL in your protocols, Defi is big enough!
After Luna crash;
EVERYONE:
Dear investors, please diversify your portfolio and do not go all in one protocol...
NO ONE:
Dear Blockchains, Please diversify your TVL in your protocols, Defi is big enough!
Loading suggestions...