Opinion: 91% of Anchor users slept through the UST incident

The withdrawal of $1.42 billion from the Anchor protocol on May 7 touched 11,400 addresses. These calculations were provided by SplitBrick DAO founder Pedro Ojeda.

Here are the TOP wallets that withdrew from Anchor on 5/7/22.

Net = Withdrawal amount — Deposit amount.
1% in this pie chart = $12M UST.

But real question is, was UST/Anchor a safe haven during market panic?

16,000 addresses interacted with Anchor, let’s find out…🧵
1/8 pic.twitter.com/JUQR4FPW6z

— Pedro Ojeda (@pedroexplore1) May 8, 2022

According to his estimate, 5,371 users deposited $224.6 million, and the remaining 90.9% did not take any action.

Ojeda questioned whether Anchor is safe in the face of market turmoil.

At the start of May, the deposit rate on Anchor was reduced to 18%. On May 7, as a result of notable withdrawals, the Terra stablecoin ecosystem briefly lost its peg to the US dollar.

The median inflow that day stood at $1,000, with withdrawals twice as large.

The distribution of funds movements shows that for 99% of addresses, the sums were below $1 million.

75% of the total amount was accounted for by 182 wallets — 1% among those who transacted with the protocol, or 0.1% of the total number of users.

According to the analysis, withdrawals from the protocol do not threaten UST’s stability. Users can undertake arbitrage to buy the LUNA token tied to the stablecoin.

Adding an additional data array for the next day did not alter Ojeda’s view. Two new addresses withdrew $220 million and $330 million.

87% of protocol users either took no action or deposited funds. The median withdrawal amount rose, but only marginally.

In each category, 75% of the value again came from sums over $1 million: withdrawals from 292 of 22,852 addresses, deposits from 41 of 8,097 addresses.

Retail investors withdrew only $200 million of the $3 billion, and deposited $45 million of the $344 million. It would be incorrect to talk about a massive outflow, the expert noted. Additionally, three of the top-10 wallets that withdrew funds from the protocol later partially returned them. Other major participants still hold ‘millions’ in Anchor.

\”This led me to conclude that they were simply paying down loans or buying the dip,\” the expert concluded.

Here are more top withdrawers bringing money back to anchor.

Furthermore, some did not re-deposit but still have millions in Anchor. Leading me to assume they were just paying loans or buying the dip.

#5 #7

9/9 pic.twitter.com/tS2lvhzmrp

— Pedro Ojeda (@pedroexplore1) May 8, 2022

ForkLog explained in a recent exclusive how Anchor’s problems could affect Terra’s economy:

As reported, Tether’s chief technology officer Paolo Ardoino warned that algorithmic stablecoins with high capitalization are dangerous for the market.

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