Terra [LUNA]: Nansen's report reveals new information on UST's depegging fiasco

Newest report said that the Terra crash earlier in Could was not attributable to a single hostile get together. Relatively a complete of seven wallets had been flagged by Nansen researchers as they studied on-chain information from Terra to Ethereum. The report additionally concluded that the UST de-pegging was not carried out by hackers or attackers.

The Nansen report titled “Demystifying TerraUSD De-Peg” is an try at investigating the Terra crash. The report stated that the assault was carried out by a gaggle of seven well-funded wallets inside the Terra ecosystem. The Namsen researchers studied on-chain information between 7 -11 Could and traced the start to the Anchor protocol on Terra.

1/ What actually occurred to $UST?

After weeks of labor from our staff of researchers, this is an in-depth have a look at the $UST disaster that introduced down the Terra ecosystem.

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Full report right here: https://t.co/MMdtrUO6Ve pic.twitter.com/7HcsPNWZOQ

— Nansen🧭 (@nansen_ai) May 27, 2022

The seven wallets initially began withdrawing UST liquidity from Anchor. Then, they began to maneuver the liquidity to Ethereum through Wormhole bridge and had been later swapped for different stablecoins on Curve’s liquidity swimming pools. Lastly, arbitrage alternatives had been created as a consequence of inefficiencies between Curve and a number of other exchanges which led to the de-pegging of TerraUSD.

Following the ‘Seven’ path

The wallets flagged by the report are as follows:

0x8d47f08ebc5554504742f547eb721a43d4947d0a (EIP 1559 Person) – with a notable transaction of $85 million of UST bridged to Ethereum on 7 Could then swapped on Curve for round $84.5 million of USDC.
0x4b5e60cb1cd6c5e67af5e6cf63229d1614bb781c (Celsius) – which bridged $175 million ofUST out of Terra to Ethereum on 7 Could. It then despatched $125 million of UST to Curve, which was then swapped to USDC in batches of $25 million.
0x1df8ea15bb725e110118f031e8e71b91abaa2a06 (hs0327.eth) – On 8 Could, the pockets bridged $20 million of UST to Ethereum.
0xeb5425e650b04e49e5e8b62fbf1c3f60df01f232 (Heavy Dex Dealer) – this pockets obtained round $10.5 million of UST on 8 Could which had been then swapped for USDC on Curve.
0x41339d9825963515e5705df8d3b0ea98105ebb1c (Good LP: 0x413) – which bridged $20 million of UST on 8 Could which was then swapped for USDC on Curve.
0x68963dc7c28a36fcacb0b39ac2d807b0329b9c69 (Token Millionaire / Heavy Dex Dealer) – which transacted round $30 million of UST, swapping it for USDC on Curve on 8 Could.
0x9f705ff1da72ed334f0e80f90aae5644f5cd7784 (Token Millionaire) – which made many transactions between 8 & 9 Could bridging a complete of $60 million of UST to Ethereum.

Supply: Nansen Question

No hack, No assault

The report additionally concluded {that a} small variety of “gamers” had been in a position to determine vulnerabilities resulting in the crash:

“This on-chain examine refutes the narrative of 1 “attacker” or “hacker” working to destabilize UST. As a substitute, we discovered {that a} small variety of gamers recognized and arbitraged vulnerabilities – particularly in relation to the shallow liquidity of the Curve swimming pools securing the UST’s peg to the opposite stablecoins.”

This report ought to assist safety protocols on blockchains to stop such loot from taking place once more. The vulnerabilities talked about have to be corrected in case of such makes an attempt sooner or later.