Working paper · 2022

A Luna-tic Stablecoin Crash

Harald Uhlig · NBER Working Paper 30256 · NBER

⚠ The summary and findings below are the editor's working notes, pending verification against the source.

Post-mortem of the May 2022 Terra/UST algorithmic-stablecoin collapse.

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Key findings

Models the UST depeg as a run driven by loss of confidence rather than purely mechanical failure.
Highlights the fragility of algorithmic stablecoins lacking hard collateral.

Topics: Peg Stability & Runs · Design & Economics

Cite this

Harald Uhlig (2022). A Luna-tic Stablecoin Crash NBER Working Paper 30256.

BibTeX

@techreport{uhlig2022lunaticstablecoincrash,
  title = {A Luna-tic Stablecoin Crash},
  author = {Harald Uhlig},
  year = {2022},
  institution = {NBER},
  howpublished = {NBER Working Paper 30256},
  url = {https://www.nber.org/papers/w30256},
  note = {Indexed by Stablecoin Beat},
}

Indexed by Stablecoin Beat — we link to and summarise sources; we do not host copyrighted full text, and summaries are our own. · All research · Methodology