The Block's Director of Data Research: Jump Crypto Loses Hundreds of Millions of Dollars from this $UST Depegged Event

Igor Igamberdiev, Director of Data Research at The Block, tweeted that Jump Crypto tried to defend the $UST peg a week ago and spent $682.5M+ on various stablecoins. They were adding one-side liquidity in $USDC since the Curve $DAI/$USDC/$USDT pool was already imbalanced. In addition, Jump Crypto spent the minted LP tokens on the withdrawal of $UST from the pool. Then, Jump Crypto practically did not transfer $UST to Terra for arbitrage at 10pm UTC on May 9. On May 12, Jump Crypto finished native swaps on Terra turning 640m $UST into 221m $LUNA. Received coins were delegated to 5 validators (including Orion Money, Hashed, DSRV, Everstake and SmartStake). In addition, Igor Igamberdiev also stated that Jump Crypto failed to keep the peg despite the use of capital almost equal to the entire $UST pool size and lost at least hundreds of millions of dollars in this event.