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DOE-backed researchers propose a solution to a stablecoin paradox: an electricity peg

Since they first emerged, stablecoins have faced a paradox.  At its heart, the stablecoin concept aims to bring centralized price stability to decentralized markets. Now, a group of researchers is proposing a new solution: using electricity as the backing asset. In a peer-reviewed paper published in MIT’s Cryptoeconomic Systems , two materials scientists at Lawrence Livermore National Laboratory​ outline a system for converting electricity into a proposed crypto token — and then back again.  “We reveal how electricity can be …

Terra fiasco triggers bigger backstop for TRON’s stablecoin

Following the total collapse of Terra’s algorithmic stablecoin in May, TRON this morning announced a plan to significantly increase the amount of capital backing up its own stablecoin. USDD — at first a near-carbon copy of Terra’s algorithmic stablecoin UST — arrived on the TRON blockchain on May 5. Initially designed to maintain its peg to the US dollar algorithmically, albeit with some backing, USDD will now be overcollateralized, according to TRON founder Justin Sun. A reserve comprised of cryptocurrencies and …

Mirror Protocol suffers new exploit and could be drained in hours

Mirror Protocol, a DeFi app on the Terra blockchain, has suffered another exploit. So far, more than $2 million has been taken and if the bug isn’t fixed by 4:00 AM ET tomorrow, all of its pools for tokenized assets will be at risk. Mirror protocol allows users to take long or short positions on tech stocks using synthetic assets. It’s running on the old Terra blockchain — now called Terrra Classic — which was replaced by a new blockchain …

A $90 million DeFi exploit on Terra went unnoticed for seven months

In October 2021, DeFi application Mirror Protocol succumbed to a $90 million exploit on the old Terra blockchain — and it went completely unnoticed until last week. Mirror protocol allowed users to take long or short positions on tech stocks using synthetic assets. It was built on Terra, which collapsed earlier this month after its main stablecoin lost its peg to the US dollar, dragging its sister token Luna down with it. (The blockchain has now been revived as Terra …

Korean prosecutors summon all Terraform Labs employees: JTBC

Prosecutors in South Korea have summoned all employees of Terraform Labs to investigate the collapse of TerraUSD, the stablecoin known by its UST ticker, according to a report from local television network JTBC on Saturday. Specifically, the Seoul Southern District Prosecutors Office’s joint financial and securities crime investigation team has summoned Terraform employees, JTBC reported, without citing any sources. One unnamed employee, known to have been involved in the initial development of the Terra blockchain in 2019, has reportedly already …

Terra gets second life as new blockchain goes live with LUNA 2.0 airdrop

Terra’s new blockchain launched on mainnet today at 6 am UTC and is now generating blocks, according to Terraform Labs CEO Do Kwon. The new chain aims to revive the Terra ecosystem after its UST algorithmic stablecoin imploded a couple weeks ago. The collapse of Terra’s tokens wiped out some $40 billion in market value.  Following the fiasco, Terraform Labs, the core development firm behind Terra, proposed a new blockchain. It took only a few days after that proposal was …

Two big staking companies won’t support Terra’s new blockchain

Two of the largest staking companies will not be supporting the new Terra blockchain, citing concerns over the way the decision-making process was handled. The two are Figment, which had $6 billion in assets under management in February — likely much lower now — and Chorus One, which currently looks after $1 billion in assets. Chorus One said it will not be supporting the new Terra blockchain because it did “not follow a legitimate governance process.” The first reason it offered …

Terra governance system passes plan to burn 1.3 billion UST tokens

Quick Take Terra’s core developers got approval to burn 1.3 billion UST from its community pool following a governance vote. This amounts to roughly 11% of the existing 11.2 billion UST supply. The Terra governance system has voted to approve a proposal to burn all TerraUSD (UST) tokens held in the project’s community pool and UST deployed for past liquidity incentives on Ethereum. This amounts to more than 1.3 billion UST, or roughly 11% of the existing 11.2 billion UST …

Crypto exchanges signal support for Terra’s ‘rebirth’

Crypto exchanges are throwing their weight behind Do Kwon’s audacious plan to raise Terra from the ashes of a devastating collapse earlier this month. In the last 12 hours, Huobi, Bitfinex and Bitrue have all tweeted their intention to support new versions of Terra and its native token LUNA. On his own Twitter, Terraform Labs CEO Do Kwon retweeted posts from each exchange as evidence of support for Terra 2.0. He also retweeted a post from Sam Bankman-Fried’s FTX — which has …

VC funding to help crypto avoid a long winter post-Terra’s collapse: JP Morgan

As long as VC funding continues to plow into the crypto markets, a long winter should be avoided, according to analysts at JP Morgan. In a research report on Wednesday, the investment bank wrote that VC funding is continue to flood into the crypto markets despite the fall of crypto’s most prominent algorithmic stablecoin — and as long as this continues to happen, the outlook is bright. “Thus far there is little evidence of VC funding drying up post Terra’s …