The Anchor protocol was originally designed to offer an interest rate of 3.6%, but just a week before release, it was raised to 20% to attract more investors, the main developer said in an interview with Korean media. exit JTBC.
“I didn’t know it would come out with such a high interest rate. Set 20% just a week before release,” said an employee who is only referred to as Mr. B in the Korean-language report.
“I thought I was going to break from the start. (I designed it) but it collapsed 100%.”
Mr. B said that the platform was designed to only offer an interest rate of 3.6% and this was a key component in keeping the Terra ecosystem stable as it took into account the available funds in the Anchor War Chest.
However, Mr. B revealed that developers learned a week before launch that plans had been changed, instead giving investors access to a very high 20% interest rate to lock their UST stablecoins in the Anchor protocol.
JTBC also claims to have received internal project documentation developed by Terraform Labs that talked about attracting investors with high interest rates.
The developer said he tried to discuss the matter with Terra Luna founder Kwon Do Hyun shortly before the launch in April 2019.
“Just before the release, I proposed to CEO Kwon Do Hyun to lower the interest rate, but it was not accepted.”
The law is deciphered, May 30 – June 6: the consequences of Terra in China, Japan and South Korea.
The plummeting of Terra (LUNA) and the algorithmic stablecoin UST led to plans by the South Korean government to set up a new Digital Assets Committee in June to oversee the country’s crypto industry and be responsible for policy preparation and oversight.
Do Kwon was summoned to a parliamentary hearing on the issue in South Korea in mid-May.
He also found himself in a quandary after court documents revealed that he dissolved Terraform Labs Korea just days before the LUNA crash.
In May, the South Korean authorities were also reported to have issued subpoenas to Terraform Labs employees to investigate whether there had been deliberate price manipulation and whether the tokens had gone through the proper listing procedures.
Despite this, the co-founder of Terra managed to restart the collapsed network on May 28 with a new network called Terra 2.0 (Pheonix-1) aimed at resurrecting the fallen Terra (LUNA) and TerraUSD (UST).
Credit : cointelegraph.com