TLDR Crypto 2022-05-11

Boba Network has implemented single-token gas payments on its blockchain using the BOBA token. Users will still have the option to use ETH for gas payments, but they receive a 25% discount for using BOBA. Boba Network scales Ethereum with fast transactions and fees up to 60 times lower. Users are able to purchase BOBA at market rates to pay for transactions through an emergency swap option.

The Luna Foundation Guard is looking to raise over $1 billion to help restore UST's dollar peg. UST recently fell to 60 cents before bouncing back up to around 90 cents. Several firms are reportedly in talks for a deal that would allow them to purchase LUNA at a 50% discount with a one-year lockup. Do Kwon, the founder of Terraform Labs, will be announcing a recovery plan for UST in the near future.

The web3 ecosystem is growing fast. There are now over 18,000 active open source devs. While the US had first-mover advantage, it has lost its lead in web3 software developers. India and Russia are showing the biggest relative growth. This article looks at data from open source repositories to determine the location of developers to see how web3 development has grown around the world.

Algorithmic stablecoins are subject to destabilizing bank runs, and the only way to defend against this is a strong, active team that performs open market operations. Decentralized stablecoins are required for a decentralized economy as their backing store can't be confiscated or frozen. There is only room in the market for one algorithmic stablecoin, and that would be the stablecoin with the biggest value and the most battle-tested team.

UST is a decentralized algorithmic stablecoin. Algorithmic stablecoins are valuable because they are scalable, decentralized, and have improved capital efficiency. Many DeFi protocols have exposure to UST, so failing to restore the peg could have huge ramifications across the entire market. Even if UST's peg is restored, it is likely that the market will lose trust in the stablecoin, making the LUNA recovery long and drawn out.

LUNA and UST have both expanded and contracted around 7%. Terra's automatic market maker is designed to hold LUNA and UST in perfect balance. The swap fee sits at around 1-2% and is determined by how quickly participants want to burn UST. Staked LUNA rewards are paid out the same regardless of price, so if LUNA drops, the reward value rises. At the current rate of burning, the UST peg is likely to return to normal within two days.

DAI, a stablecoin backed by collateralized debt positions, was only able to maintain stability after being deployed on the 3pool. Its ability to maintain its peg relies heavily on the 3pool, which essentially pegs DAI's price to USDC and USDT. UST was one of the biggest contributors of total value locked to the 3pool. $150 million worth of UST was withdrawn from the 3pool to create the 4pool, creating an opportunity for someone to attack the network and destabilize UST's peg.

Azuki's founder recently shared that they were involved in several NFT projects that some have labeled as rugpulls. This resulted in the NFT collection's floor price dropping by 45%. The Azuki NFT collection has been declining over the past month, but it was partly due to the crypto and NFT markets crashing across the board. Azuki's founder has denied the rugpull allegations, saying that the projects were just unsuccessful.

LUNA dropped 65% in 24 hours. The token began its collapse after UST lost its peg. UST's fall has renewed calls from US government officials for stablecoin regulations. Binance has temporarily stopped withdrawals of LUNA.