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!

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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

 

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