![1658183967752_1.jpg](https://cdn.steemitimages.com/DQmYTPCasP1d9VJNkTJeg3Em931P1v9DyA3VFBf7b8inK46/1658183967752_1.jpg) ![6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png](https://cdn.steemitimages.com/DQmVoV8SLA6q3Yz9WBs66r75WVwrzJQo4ZGPZpTL8xN4H1T/6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png) **INTRODUCTION** I will like explain in a simple way what Luna and UST is. About 3 months ago UST depegged from $1 which coursed great fear in the crypto space. The event has a great effect on the crypto space. It have made a lot of people sell the asset which has caused huge drop in the price of many cryptocurrency. ![6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png](https://cdn.steemitimages.com/DQmVoV8SLA6q3Yz9WBs66r75WVwrzJQo4ZGPZpTL8xN4H1T/6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png) **WHAT IS UST?** UST is a stablecoin which means the price of UST should always stay at $1. UST achieve its stability with help of Luna. UST uses an algorithmic peg to achieve its stability and that means that you can always get 1 dollar worth of UST with your Luna even if the price of UST is $0.50. For instance, if the price of UST fall to $0.65 and you want to buy Luna with your UST that is currently at $0.65, you will be able to buy Luna as if UST is at $1. If you have $200 worth of Luna, you use that $200 worth of Luna to buy 100 UST notwithstanding what the price of UST at. It is just an arbitrate method. ![6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png](https://cdn.steemitimages.com/DQmVoV8SLA6q3Yz9WBs66r75WVwrzJQo4ZGPZpTL8xN4H1T/6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png) **HOW OTHER STABLECOIN WORKS** The other stablecoin doesn't work the same way UST work because they are backed up by assets such as Bitcoin, Ethereum, and USDC. In the case of DAI, it is backed by Bitcoin, Ethereum, and USDC while USDC is backed by one dollar. We are not sure what USDT is backed by because they said it was backed by the dollar but they later changed it and UST was backed by Luna. UST grew rapidly within a short period and also Luna grow. UST does have a use case, it works on Anchor protocol. What anchor does is for you to stake your assets and get interested up to 19% APR. Anchor protocol helps the ecosystem grow rapidly because people could stake the UST on the platform. ![6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png](https://cdn.steemitimages.com/DQmVoV8SLA6q3Yz9WBs66r75WVwrzJQo4ZGPZpTL8xN4H1T/6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png) **HOW DOES LUNA UST FALL?** The Luna foundation withdrew about 150 million from Curve because they were waiting for the launch of For pool. The purpose of the pool is to prevent the price of UST from de-pegging but it is unfortunate that the attacks take advantage of the moment Luna foundation pools their 150 million liquidity from the pool to drain the liquidity pool with the sum of 350 million dollar liquidity. The attack made Luna foundation to Luna the Bitcoin to raise found to bring the price of UST back to $1. A lot of people were afraid about what is going on in with UST, this made a lot of people start selling their UST which made UST drop even further. They find a way to bring the price of UST back to $0.93. The price of Luna is actually because of the arbitrage opportunity. ![6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png](https://cdn.steemitimages.com/DQmVoV8SLA6q3Yz9WBs66r75WVwrzJQo4ZGPZpTL8xN4H1T/6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png) **WHY DID THEY ATTACK UST AND WHO WERE THE ATTACKERS?** There are a lot of speculations out there but who the attacks were and their motive for the attack. Some people said they are shorting Luna or Bitcoin and the motive was to crash UST so that they can make a lot of money shorting. ![6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png](https://cdn.steemitimages.com/DQmVoV8SLA6q3Yz9WBs66r75WVwrzJQo4ZGPZpTL8xN4H1T/6HUfjqU594b5yyon4BsQbonAT6LyfLX2nGP28V7XVjx8mVxn1gcrwqUF7SuUJgXAvA9ALw4aJtzv4UMUgnFwsMR4X5Ft2peth7F8wMaoRVUodFfcLJrheNLJbg4rYx...SZqHGypSYnxc6yjRCw4HSqTDZgU1Q528My74zXGeyA4PtV8kDE2kJqJEPq2mHsgFJutq5yPBbCKWYYxrdHg6FfZcGaeesfn4xfLzeXpm2PGW8nz6i63FzKCp94.png) **CONCLUSION** Luna and UST project is a good project but it is unfortunate that some people think is too big to fail. There is nobody the could predict that the Luna UST project will fail because the project was doing well until it was attacked. Unfortunately, Luna can never survive this attack. As of the time of writing Luna's price was $1.9 while UST's price was $0.04.