Terra Founder Do Kwon Supports Community’s UST Proposal; LUNA Drops to $2.2

“The price stabilization mechanism is absorbing UST supply (over 10% of total supply),” Kwon explained in a tweet in European hours, explaining how UST works. “But the cost of absorbing so many stablecoins at the same time has stretched out the on-chain swap spread to 40%, and LUNA price has diminished dramatically absorbing the arbs.”

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