The collapse in Terra deeply shook the cryptocurrency market. While the market, where millions of dollars of losses are talked about, is trying to recover now, important names continue to be asked about what happened.
Tether's CTO, Paolo Ardoino, discussed what happened to Terra in a recent interview. Ardoino commented on the Terra ecosystem, which is seen as the main catalyst behind the cryptocurrency crash.
Ardoino criticized the Terra founders for creating the UST stablecoin and backing it with a cryptocurrency. According to Ardoino, the fact that LUNA acted as collateral for the UST meant that when the token crashed, its stablecoin would lose the dollar rate. That's exactly what happened.
According to Finbold's report, the manager said the following on the subject:
“You can't have cryptocurrencies, especially 100 percent cryptocurrencies, to have a safe reserve. These guys were creating two things, one their own cryptocurrency called LUNA and a stablecoin on top of that cryptocurrency. This is a recipe for disaster.”
Emphasizing that stablecoins must have sufficient reserves, as in USDT, to avoid a similar fate with the UST, Ardoino underlined that to keep the stablecoin stable with the dollar, there must be a portfolio of assets, including US treasuries, cash bank deposits and commercial papers. he drew.
Chainlink announces that it has entered a new era with Staking
Chainlink has announced its new era called Chainlink Economics 2.0 with a new sustainable growth starting with staking. The first application for this period is planned to be made in the second half of 2022.
Chainlink staking aims to provide ecosystem actors such as node operators and community members with the option to support Oracle services with staked LINK tokens, thereby increasing security guarantees and user assurances.
According to the Chainlink announcement, the initial implementation will focus on providing a simple and secure foundation on which feedback can be collected before expanding the scope and making the staking architecture more complex.