Anchor UST Emergency Solution: Steaker Protects Users’ Assets as UST Loses Its Peg
May 12, 2022
TerraUSD (UST), a so-called algorithmic stablecoin, has lost its dollar peg for the second time in three days. In the face of such wild fluctuations in crypto prices, Steaker team has made a series of well-thought-out contingency plans for the ongoing 3rd and the upcoming 4th Anchor UST portfolio.
Portfolios on our platform are fully equipped with an effective risk-control mechanism. Take Anchor UST. As the system detected that the UST fell to lower than $0.99 on 2022/05/09 (UTC+8) this Monday, our internal risk-control warning was then triggered in response.
Next up, we had decided to revoke the 4th Anchor UST which was expected to be active on 2022/05/10 (UTC+8) following a prudent evaluation of the risks involved. Users were notified of the cancellation one day before the investment came into play, and the subscription amounts were fully refunded within one working day as well.
To curb losses, Steaker team took prompt action to sell out of all UST in the 3rd Anchor Protocol and exchange them for collateralized stablecoins such as USDT or USDC early on 2022/05/10 (UTC+8), maintaining the APY up to 9.27%, which is impressive.
Meanwhile, 3rd Anchor UST investors were informed forthwith of this emergency solution, and the fees were reduced depending on the proportion of days running to the contract period. The usual process of redemption and renewal was subsequently available on the same day.
Steaker has always prioritized the security of users’ assets with the highest safety standards and will insist on safeguarding users’ rights likewise in the future, helping all our users make crypto investment easy with the premise that the risks are carefully held in check.