{"id":35235,"date":"2022-06-03T16:43:16","date_gmt":"2022-06-03T16:43:16","guid":{"rendered":"https:\/\/harchi90.com\/the-ust-mystery-of-wallet-a\/"},"modified":"2022-06-03T16:43:16","modified_gmt":"2022-06-03T16:43:16","slug":"the-ust-mystery-of-wallet-a","status":"publish","type":"post","link":"https:\/\/harchi90.com\/the-ust-mystery-of-wallet-a\/","title":{"rendered":"The UST mystery of Wallet A"},"content":{"rendered":"
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Jump Trading’s crypto arm has not covered itself in glory in the terra-luna implosion. But the trading firm has now published an interesting postmortem into the debacle. <\/p>\n
If it is to be believed, the owner of the Ethereum address 0x8d47F08EBc5554504742f547eb721a43d4947D0A and Terra address terra1yl8l5dzz4jhnzzh6jxq6pdezd2z4qgmgrdt82k (‘Wallet A’) has some questions to answer. The whole report is interesting, but especially what it considers the first fatal blow, on May 7.<\/p>\n
According to Jump Crypto’s Nihar Shah and Maher Latif, the crucial events happened on a trading pool called Curve over a 75 minute window late on Saturday, May 7. For reference, Terraform Labs is the company of Do Kwon, the person behind the algorithmic stablecoin terraUSD (UST), and USD Coin (USDC) is a rival stablecoin.<\/p>\n
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At 21:44 GMT, Terraform Labs (TFL) withdrew $ 150 million in UST liquidity. This made the Curve pool relatively balanced, but much smaller.<\/p>\n
At 21:57, a relatively-inactive account (\u201cWallet A\u201d) swapped $ 85 million UST for USDC in this pool. (This was the largest swap transaction in that particular Curve pool ever.) Such an action pushed the Curve pool out of balance again.<\/p>\n
From 22:32 – 22:38, another account (\u201cWallet B\u201d) swapped $ 75 million UST in the pool across three transactions. By this point, the pool was severely imbalanced.<\/p>\n
At 10:52 PM, Terraform Labs withdrew another $ 100 million in UST liquidity. This made the pool slightly more balanced, but it was still heavily imbalanced and – more critically – tiny at this point, leaving it vulnerable to even small transactions.<\/p>\n
At 22:59, Wallet B swapped another $ 25 million UST in the pool.<\/p>\n
After 23:00, there was a flurry of activity in the Curve pool. Appendix A. 1 briefly explores those transactions, but an excellent research note recently published by Nansen.ai should be consulted for more depth on both those and other transactions.<\/p>\n<\/blockquote>\n
Here’s how it played out that Saturday night:<\/p>\n