Weekly DeFi Update (Week 19, 09/05/2022 – 15/05/2022)

USDT briefly loses peg after the collapse of LUNA and UST. Do Kwon publishes a ‘Terra Ecosystem Revival Plan’ outlining the way forward.

Tether (USDT) briefly lost its dollar peg this week, dipping as low as US$0.95 on Thursday as the collapse of LUNA and UST shook the market’s confidence. However, the $1 peg was restored by Friday. At the time of writing, USDT is trading slightly under $1, at $0.9989.
Celsius reportedly removed at least $500M from Anchor during the recent UST turmoil. Founder Alex Machinsky took to Twitter to deny recent rumours of losses as a result of market volatility.
UST’s depegging continued this week, with LUNA falling to below $0.01. Do Kwon published a Terra Ecosystem Revival Plan over the weekend which aims to lay out the way forward for the ecosystem.
This week’s price index was negative at -33.72%, while the volume and volatility indices were positive at +67.25% and +230.03% respectively.