Stablecoin UST Loses Peg to the US Dollar Amid Outflow of Assets from Anchor

More than 2 billion UST were withdrawn from the Anchor protocol in less than two days against the decline in the rate of return on deposits. Due to the incident, the algorithmic stablecoin of the Terra ecosystem (UST) briefly lost its peg to the US dollar.

As of May, the asset was trading near $0.98.

In March, the Anchor community voted in favor of a proposal according to which the deposit rate could change by a maximum of 1.5% depending on the volume of the yield reserve. 

According to SmartStake, over the past month, the volume of dropped nearly 44% to 180.45 UST. 

Similar incidents have already happened with Anchor. For instance, in February, the protocol reserve was almost completely depleted. To prevent collapse, non-profit organization Luna Foundation Guard (LFG) donated 450 million UST to the project.