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In response to
"Why stablecoins? er, and wait Luna was worth $116 at some momentarily lottery winning point. Aren't they supposed to be 'stable'?"
by
JD
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Luna wasn't the stablecoin, Terra was.
Posted by
spamlet
May 20 '22, 14:30
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They were symbiotic in that Luna (moon) was supposed to keep Terra (earth) at $1 because you could convert from one to the other at the fixed rate of $1 of Terra. Unfortunately, that means if confidence in one falls the other will go with it and start a death spiral and that's what happened.
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