The Terra ecosystem's algorithmic stablecoin, UST, has briefly lost its parity with the US dollar due to the withdrawal of more than 2.2 billion UST from the Anchor protocol in less than two days.
In particular, the cryptocurrency's price yesterday stood at $0.98, while it is currently up to $0.995, according to CoinGecko.
The Anchor community voted in March in favor of a proposal that would change the deposit rate by up to 1.5% depending on the size of the performance reserve.
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According to SmartStake, over the last month, the volume of the project's reserves has decreased by almost 44% to 180.45 UST.
It must be noted that Anchor has suffered similar incidents in the past. For example, in February, the protocol reserve was almost completely depleted. To prevent the collapse, non-profit Luna Foundation Guard (LFG) donated 450 million UST to the project.
However, this time there has been no capital injection. In early May, the interest rate on deposits at Anchor was reduced to 18% for the first time. Now its value is even lower: 17.87%.
Because of this, users have started to withdraw assets from the protocol en masse.