Terra, Luna and UST: How we got here

– On May 5, the Luna Foundation Guard (LFG) said it had purchased $1.5 billion worth of bitcoin, bringing the total in the reserve to $3.5 billion.
– Something happened this weekend that caused a large amount of UST selling, leading to the price falling below $0.90.
– On Monday, the LFG said it would defend the peg by lending out $1.5 billion in bitcoin from its reserve to over-the-counter trading firms.
– The price began declining quickly again on Tuesday, falling to around $0.30.
– On Wednesday, Do Kwon laid out plans to help bring UST back to market parity, including increasing Luna minting by 400% to let more UST holders cash out.
– The collapse has left a huge amount of uncertainty and distrust in its wake.