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So What Lunatic Thought That Algorithmizing A Doom Loop Was A Good Idea?

So What Lunatic Thought That Algorithmizing A Doom Loop Was A Good Idea?


Seeking Alpha
2022-05-16 17:49:00

The Magic Algo broke down when many people tried to exchange TerraUSD for Luna, and the supply of Luna exploded.The crashing Luna increased the incentive to liquidate TerraUSD which accelerated the downward spiral.In financial markets, positive feedback almost always has negative effects.


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