The latest breakdown
- before attack they OTC accumulated $1Bn of UST
- borrowed $3Bn in BTC
- spread around some fud about peg and bank runs
- dumped the fuck out of their $3Bn BTC on market to trigger wider panic
- 10 min after TFL pulled some liquidity from curve in preparation for 4pool, the attackers pounced
- first cleared all liquidity from Curve (needed just 350M UST to do that)
- then started dumping their UST on Binance
- creating a small depeg
- terra market module was configured for $150m daily throughput for peg restoration, would be enough if liquidity on curve was the intended $4Bn instead of $350M
- people in panic because BTC tanking and small UST depeg, so LFG started selling BTC to restore peg
- that's exactly what the attackers wanted because they've shorted BTC..
- TFL dumping BTC, while attackers putting pressure on by dumping UST
- the more BTC sold, the lower BTC tanked increasing panic, the less UST sell pressure the attackers needed
- finally people started panicking for good and mass congestion hit the chain, cexes suspended withdrawals and shit hit the fan, bank run
- Jump/LFG likely realized what's happening somewhere in the middle of their BTC reserve bag, stopped dumping BTC to save the peg, let it burn
- now peg is being restored naturally via the market module
- rumours on CT about big deals made during the night
All of this would not be economically viable if the 4pool was live. Because clearing the 4pool alone would require $3Bn instead of 350M. The timing was not a coincidence.
So, using just $350M they were able to make billions AND almost destroy Luna
Source:
https://t.me/TheNorwegianNews/431
I still believe on Luna despite this massive failure on depegging. High risk high reward.