I guess many of you heard the news about UST going down all the way to ~ 0.60 and even Janet Yellen commented on it. So, can someone please explain it why it happened to UST? What is wrong (?) with it?
the beginning of the problem was because bitcoin crashed. UST is an algorithmic stablecoin backed by the terra(LUNA). when bitcoin crash, luna also followed and this also impacted UST. to keep it stable they use Luna to backed ust. but the scenario didn't go well, ust kept falling and luna couldn't hold it. as a result UST and luna fell very deep.