Terra [LUNA]: Nansen’s report reveals new information on UST’s depegging fiasco

Newest report said that the Terra crash earlier in Might was not brought on by a single hostile get together. Quite a complete of seven wallets have been flagged by Nansen researchers as they studied on-chain knowledge from Terra to Ethereum. The report additionally concluded that the UST de-pegging was not carried out by hackers or attackers. 

The Nansen report titled “Demystifying TerraUSD De-Peg” is an try at investigating the Terra crash. The report stated that the assault was carried out by a gaggle of seven well-funded wallets throughout the Terra ecosystem. The Namsen researchers studied on-chain knowledge between 7 -11 Might and traced the start to the Anchor protocol on Terra.

The seven wallets initially began withdrawing UST liquidity from Anchor. Then, they began to maneuver the liquidity to Ethereum by way of Wormhole bridge and have been later swapped for different stablecoins on Curve’s liquidity swimming pools. Lastly, arbitrage alternatives have been created as a result of inefficiencies between Curve and several other exchanges which led to the de-pegging of TerraUSD.

Following the ‘Seven’ path

The wallets flagged by the report are as follows:

  • 0x8d47f08ebc5554504742f547eb721a43d4947d0a (EIP 1559 Person) – with a notable transaction of $85 million of UST bridged to Ethereum on 7 Might then swapped on Curve for round $84.5 million of USDC.
  • 0x4b5e60cb1cd6c5e67af5e6cf63229d1614bb781c (Celsius) – which bridged $175 million ofUST out of Terra to Ethereum on 7 Might. It then despatched $125 million of UST to Curve, which was then swapped to USDC in batches of $25 million.
  • 0x1df8ea15bb725e110118f031e8e71b91abaa2a06 (hs0327.eth) – On 8 Might, the pockets bridged $20 million of UST to Ethereum.
  • 0xeb5425e650b04e49e5e8b62fbf1c3f60df01f232 (Heavy Dex Dealer) – this pockets obtained round $10.5 million of UST on 8 Might which have been then swapped for USDC on Curve.
  • 0x41339d9825963515e5705df8d3b0ea98105ebb1c (Good LP: 0x413) – which bridged $20 million of UST on 8 Might which was then swapped for USDC on Curve.
  • 0x68963dc7c28a36fcacb0b39ac2d807b0329b9c69 (Token Millionaire / Heavy Dex Dealer) – which transacted round $30 million of UST, swapping it for USDC on Curve on 8 Might.
  • 0x9f705ff1da72ed334f0e80f90aae5644f5cd7784 (Token Millionaire) – which made many transactions between 8 & 9 Might bridging a complete of $60 million of UST to Ethereum.
Screenshot 2022 05 28 at 5.58.58 PM

Supply: Nansen Question

No hack, No assault

The report additionally concluded {that a} small variety of “gamers” have been ready to determine vulnerabilities resulting in the crash:

“This on-chain research refutes the narrative of 1 “attacker” or “hacker” working to destabilize UST. As an alternative, we discovered {that a} small variety of gamers recognized and arbitraged vulnerabilities – particularly in relation to the shallow liquidity of the Curve swimming pools securing the UST’s peg to the opposite stablecoins.”

This report ought to assist safety protocols on blockchains to stop such loot from taking place once more. The vulnerabilities talked about have to be corrected in case of such makes an attempt sooner or later.

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