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Terra Says Citadel Securities Caused UST Stablecoin Depeg
Terraform Labs has accused U.S.-based American market-making firm Citadel Securities LLC of intentionally destabilizing its TerraUSD (UST) stablecoin in May 2022, alleging that the firm was the result of a "concerted, intentional effort" rather than an algorithmic failure. The UST stablecoin was designed to maintain its 1:1 peg to the U.S. dollar by ensuring that the supply and demand for it are always balanced via an arbitrage strategy. If it traded higher than $1, the protocol incentivized users to mint UST and burn its sister token LUNA (also the network's staking and governance asset), aimed at lowering the Terra ... (full story)