5 must-reads in the evening | Looking at the algorithmic stablecoin game from LUNA

1. Looking at the algorithmic stablecoin game from LUNA

After the Federal Reserve announced a rate hike, the overall crypto market fell, and then crypto panic intensified. At the same time, the Terra ecological team LFG announced to adjust the withdrawal interval of the UST-3Crv pool, and the giant whale address dumped UST, causing the largest algorithmic stablecoin UST to be severely de-anchored, and then LUNA collapsed and fell into a death spiral. A series of operations to siege UST further brought down the market, and let the market once again witness the game of algorithmic stablecoins. click to read

2. Review the crash moment of "LUNA Brothers"

We are witnessing the biggest crash moment in crypto history, comparable to the 2008 Lehman Brothers crash.

In just 5 days, the price of LUNA fell by nearly 100% until it returned to zero. The algorithmic stablecoin UST on it was completely decoupled, and the market value of up to 41.9 billion U.S. dollars was wiped out.

Let's review how LUNA and UST collapsed. click to read

3. The latest papers by Vitalik and others: Decentralized society seeks the soul of Web3 (Part 1)

"Decentralized Society: Finding the Soul of Web3" is the latest paper by Vitalik et al. This paper describes how to achieve a richer and more diverse ecosystem through soul-bound tokens, namely "Decentralized Society (DeSoc) and Key decomposable property rights and enhanced governance mechanisms in a decentralized society". Today, Web3 is more about expressing transferable, financialized assets than about encoding social trust relationships. Yet many core economic activities, such as unsecured lending and building a personal brand, are built on lasting, non-transferable relationships. In this paper, we illustrate how non-transferable “soulbound” tokens (“soulbound” tokens (SBTs) representing “soulbound” commitments, credentials, and relationships can encode the real economy’s web of trust to establish provenance and of reputation. More importantly, SBTs can realize other more and more application scenarios, such as recovery of community wallets, anti-virus governance, decentralized mechanisms, and new markets with decomposable and shared rights. click to read

4. Opinion: The encrypted world is reborn on the verge of collapse

AC believes that: Crypto is following the old path of monetary policy in the early years, repeating the same mistakes, and re-committing the mistakes made before monetary policy. Dragon slayers may be slowly becoming dragons. Wave after wave of Crypto has iterated into another look, and we can't remember why we started. Crypto culture kills the crypto spirit.

Indeed, as if it were so. Instead of prioritizing core values (decentralization, security, privacy, ownership, innovation), we focus on the short-term thrills of greed (taking orders, hyping, getting bloody because of the frenzy). This situation is rather sad. click to read

5. Learn about 15 DAO classifications and their utility in one article

Unless you've ever tried to navigate financial regulation or found a charity, it's hard to appreciate how revolutionary decentralized autonomous organizations (DAOs) are. The latter can take years and involves recruiting trustees, choosing an organizational structure, writing governing documents, and obtaining approval from the National Charity Commission with supporting documents and proof of income. In contrast, a fully functioning Aragon DAO, with transparent finances and direct democracy for all members, is a sovereign digital jurisdiction that can fund projects in 5 minutes. DAOs are not subsidized by the government like charities, but the potential increase in subsidies can be subtracted many times in time and administrative costs. When society learns that self-organization in this way is highly efficient, we will see a Cambrian explosion of democratic activity that does to organization what the Internet did to communication. click to read