• Bitcoin
  • NFT
  • Binance
  • ETH
  • DeFi
  • Metaverse
  • IDO
  • Coinbase
  • Solana
  • ETF
  • FTX
  • GameFi
Newsletter
  • Home
  • Crypto News
  • Market
  • Learn
No Result
View All Result
  • Home
  • Crypto News
  • Market
  • Learn
No Result
View All Result
CoinLive
No Result
View All Result
Home Crypto News

Over one billion bucks on Anchor Protocol liquidated in just one particular week by the “storm” LUNA-UST

191
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

Coin68 Weekly Magazine (November 20 - November 26): Shocking $4.3 Billion Fine for Binance

Coinlive Weekly Magazine (November twenty – November 26): Shocking $four.three Billion Fine for Binance

November 26, 2023
Outstanding on-chain event last week (November 20th

Outstanding on-chain occasion final week (November 20th

November 25, 2023

The Terra Anchor Protocol (ANC) lending protocol recorded in excess of $ one billion in liquidations final week, creating it the greatest liquidation occasion in cryptocurrency historical past for a loan venture.

Over $ 1 billion on Anchor Protocol cleared in just one week since "storm" LUNA-UST
Over one billion bucks on Anchor Protocol liquidated in just one particular week by the “storm” LUNA-UST

According to the information compiled by The blockFrom May seven to May twelve, the crypto collateral deposited by borrowers on Anchor really worth $ one.048 billion was entirely liquidated on the platform.

Luna (LUNA) represents in excess of $ 750 million, or virtually 75% of Anchor’s liquidation. Meanwhile, Avalanche (AVAX) is in 2nd location with $ 261 million, although the rest is distributed equally among Ether (ETH), Solana (SOL) and Cosmos (ATOM).

Cryptocurrencies have been liquidated on Anchor Protocol.  Source: The block
Cryptocurrencies have been liquidated on Anchor Protocol. Source: The block

Additionally, the income that “flies without wings” to Anchor has played a key function in decreasing the TVL peak of the total Earth ecosystem from $ 26 billion in March to $ 142 million at the time of creating.

TVL fluctuations of the entire Earth ecosystem and pending sub-projects on the morning of 10 March 2022. Source: Defi Lama
TVL fluctuations of the total Earth ecosystem and pending sub-tasks on the morning of ten March 2022. Source: Defi Lama
TVL fluctuations of the entire Earth ecosystem and pending sub-projects on 21 May 2022. Source: Defi Lama
TVL fluctuations of the total Earth ecosystem and pending sub-tasks on 21 May 2022. Source: Defi Lama

Notably, the final time this kind of a massive liquidation occasion occurred was a yr in the past. It was then that today’s most well-liked DeFi lending platforms, Compound and Aave, had to liquidate a complete of $ 633 million amid a standard marketplace crash at the time triggered by China’s cryptocurrency mining ban.

The largest liquidations in the history of the lending protocol cryptocurrency industry.  Source: The block
The greatest liquidations in the historical past of the lending protocol cryptocurrency field. Source: The block

In Anchor’s situation, the LUNA-UST trouble was the major result in. To comprehend how this “snowball” rolled, we will need to comprehend a couple of factors about Anchor’s mechanism of action.

Anchor is a lending platform on the Earth ecosystem. Users can borrow from Anchor by betting collateral in the type of lots of other tokens this kind of as LUNA, ETH, AVAX, SOL and ATOM.

Users borrow on Anchor at ten% curiosity and can borrow up to 60% of the collateral worth they deposit on the platform. Anchor features these loans in the type of UST stablecoins. Settlement requires location on Anchor when the worth of the blocked collateral falls at some stage past the threshold expected to repay the loan.

Anchor, on the other hand, features up to 18% curiosity on the UST stablecoin. Therefore, even even though it is essentially a lending protocol, with this kind of eye-catching curiosity, end users had been brief to send USTs to Anchor, prompting the volume of UST deposited in the venture ($ 14 billion) to overwhelm the loan volume (with only $ three billion). billion FSO), as mentioned by Coinlive on seven May, the day ahead of the FSO misplaced its reference stage for the very first time.

Key parameters of the Anchor Protocol as of 7 May 2022
Key parameters of the Anchor Protocol as of seven May 2022

This left Anchor with no earnings to shell out curiosity and the platform chose to “cut blood” on its personal to fix the trouble. Also to keep away from the danger of resource depletion major to collapse, Anchor has even place forward the proposal to turn out to be “Curve on Terra”.

However, when almost everything collapsed quite swiftly following Bitcoin’s sudden plunge to $ 34,000 on May eight, LUNA misplaced a lot more than 99% of its worth, dropping from $ 73 to $ .83. FSO repeatedly lowers deeper thresholds than anticipated. LUNA-based mostly mortgages consequently “evaporate”. The very same is accurate for lots of other assets as the cryptocurrency marketplace landscape continues to decline on a greater scale.

Synthetic currency 68

Maybe you are interested:

Maybe you are interested:

Tags: AnchorbilliondollarsliquidatedLUNAUSTProtocolSTORMweek
Share76Tweet48

Related Posts

Chainlink, Mastercard Enable Crypto Purchases for 3 Billion Users

by shark
June 26, 2025
0

Chainlink partners with Mastercard to offer decentralized crypto access to 3 billion cardholders, integrating blockchain and DeFi for seamless transactions.

Aurora Mobile Allocates 20% Cash to Cryptocurrencies

by shark
June 25, 2025
0

Aurora Mobile's strategic investment decision to allocate 20% of its cash to cryptocurrencies showcases confidence in digital assets for diversified...

SEC Clarifies Staking Rules, Impact on Crypto Sector

by shark
June 25, 2025
0

SEC clarifies crypto staking rules, impacting Ethereum and Solana. Academic institutions advocate for stringent oversight.

WazirX Granted Court Extension for Restructuring Plan

by shark
June 25, 2025
0

WazirX gains court extension for restructuring post-hack, shielding from lawsuits.

Arbitrum’s Protocol Revenue Soars by 23% Amid Renewed DAO Partnership

by shark
June 25, 2025
0

Arbitrum sees a 23% increase in protocol revenue as strategic DAO collaboration boosts financial outcomes.

Load More

Tags

analysis announces Bank billion Binance Bitcoin Blockchain BTC CEO Coin Coinbase Crypto cryptocurrencies Cryptocurrency DeFi ETH Ethereum Exchange Finance FTX fund game General News Information Investment Latest Launch launches market Metaverse million Network News NFT platform Price project Protocol Review SEC Solana Token trading users wallet

Recent Posts

  • Chainlink, Mastercard Enable Crypto Purchases for 3 Billion Users
  • Aurora Mobile Allocates 20% Cash to Cryptocurrencies
  • Top altcoin for huge gains: Qubetics ($TICS) vs Bitcoin vs BNB comparison
  • SEC Clarifies Staking Rules, Impact on Crypto Sector
  • WazirX Granted Court Extension for Restructuring Plan
  • Arbitrum’s Protocol Revenue Soars by 23% Amid Renewed DAO Partnership
  • Bonk Price Prediction: Bonk Fades After 11,954% Rally as Troller Cat Prepares to Pounce With 13x Potential
  • Polymarket Shows Low Trump Impeachment Odds for 2025
  • About
  • FAQ
  • Contact Us
  • IGO
  • Altcoin
  • Terra
  • Launchpad
  • P2E
  • META
  • AXS
Email us: [email protected]

© 2021 CoinLive - Crypto News 24/7

No Result
View All Result
  • Home
  • Crypto News
  • Market Analysis
  • Learn

© 2021 CoinLive - Crypto News 24/7