Kevin Zhou, co-founder of Galois Capital, discusses a crazy week in the world of algorithmic stablecoins that saw USDN de-peg from the dollar and Terra unveil plans to create a new liquidity pool on Curve to strengthen UST. Show highlights:

  • how USDN and Waves works
  • what made USD de-peg
  • why Kevin thinks algorithmic stablecoins fail so often
  • what Kevin thinks about backing UST with BTC
  • how 4pool works in the context of Curve Finance, 3pool, UST, Frax Finance, and Redacted Cartel
  • why Kevin believes Anchor is the reason UST could de-peg
  • what might happen to Terra and the crypto market writ large if UST were to de-peg
  • why lowering yields on Anchor could depress LUNA’s price by 8x
  • how UST and LUNA redemptions work

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Kevin Zhou


  • Proposal