RABIT Weekly news (W3 May 2022)

• The chain crisis that started at Terra ended at Tether, also known as the Crypto Market's Lehman Moment
  • Doubts over UST's reserves lead to a defecation and a crash in LUNA
  • Terra dumps BTC in possession of UST to defend against Pegging, causing price drops
  • Market jitters lead to a plunge in algorithmic stable coins and DeFi protocol coins
  • On top of that, NASDAQ's fall, which came in April when the U.S. CPI exceeded expectations, added to the chaos
  • Meanwhile, China's third-largest real estate developer Sunac defaults on dollar bonds
  • This leads to the de-pegging of tethers, and the chaos in the market goes to extremes
  • Once BUSD/USDT, USDC/USDT soared to 1.2
  • Tether Announces "Swapping 1.02 Billion USDT from TRC-20 to ERC-20 and AVAX," Puts All Chaos to Sleep and Reaches Market-wide Rebound
  • U.S. Treasury Secretary Janet Yellen said, "We are aware of UST's bank run issue, and Stablecoin's regulations are necessary to prevent this and protect consumers."
  • SEC is likely to be investigating Terra → Citadel connection will be revealed
• Microstrategy CEO Twitter
  • Approximately 130,000 BTC, flat unit price $30,700
  • Have $20.5 billion in loans
  • $410 billion worth of collateral conditions, 115,019 BTC as collateral
  • LTV is 25%, margin call conditions are 50% of LTV
  • "Once again, we'll never sell out."
• Coinbase, $430 million loss in 1Q (Sales : $1.16 billion < Expected : $1.5 billion)
• RABIT’s performance
  • (During the Lehman moment of the Crypto Market)
  • BTC: Periodic return, once recorded to approximately -33%
  • RABIT’s ‘HODL B’ bot: Approximately +3%
  • RABIT’s ‘BART U’ bot: Approximately +14%
  • RABIT’s ‘Funding U’ bot
    • Expected return is similar to DeFi's expected return on deposits
    • However, Funding U bot is free from DeFi protocol risks

RABIT: https://rabit.bot

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