11 Comments
Jan 9, 2022Liked by LlamaRisk

Thank you kindly for the investigation, how do you get paid for doing this work? Or what is your incentive to do this work?

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author

Hi! Good question. We are funded by research grants.

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This one aged well.

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Looks like a great time to do a follow up.

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The prophesy almost came true. Can you please follow up based on recent events? BTW arbitrage based on LUNA/UST minting mechanism is not so simple cause swap spreads are variable and depend on market conditions. Today spead for market swap was about 1% that prevented arb. Consequently LUNA supply diminished once again ))) Guys in TFL are clever

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Thank you for this indepth Article!

How did you manage to connect the Abracadabra Frontend to the Time-Wonderland Adress to see their liquidation price?

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I used the Frame wallet.

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Hi Thank you very much for this solid assessment article. I have a question. Please be assured that you would not be held countable for your comment. What would be the danger zone for UST/Anchor depositors in light of the depletion level of the Yield Reserve? $10 million left in the Yield Reserve? $5 mil? Or $30 mil? Many thanks for your reply in advance.

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author

I suspect the market gets spooked more or less if the yield reserves fall at an accelerated rate, which is what is happening right now: http://www.mirrortracker.info/anchor .

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Reserves are at 57 million right now. Assuming 0.3 million depletion per day (on average), we're looking at 190 days until zero-day.

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It's much more than that. It's running at a little over $1M per 24 hours right now and accelerating. Many of us have been raising warning flags in the forums for a while. Great article. I agree with all of this.

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