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In summary, LFG has gone from having $3.1 billion in their reserves a week ago to now having roughly $87M. Which means they spent roughly $3 billion defending the UST peg and UST still collapsed.
Steps for a gud decentralized stablecoin:
1.) Mechanism
2.) Utility
(2) serves as a positive feedback loop to (1), but as soon as (1) fails in an edge case (2) disappears. This can be seen with $UST and $ANC, was a great experiment to watch unfold.