UST had an impressive LFG fund which was the collateral for LUNA, this fund had tens of billions of dollars in bitcoin. The main problem was that UST was giving an unrealistic interest rate, almost 20%. At that rate, you need a constant inflow of new money. It was more like some kind of pyramid scheme, where the pyramid lives if there is a constant inflow of new money. Because of the problems in tokenomics, LUNA faced hyperinflation and even a huge fund could not save the situation. Apparently they realized that the situation cannot be saved and it is easier to sell off all bitcoins than to try to keep UST from de-peg.
Yet the unrealistic interest rate was used to attract people to locked their token on the protocol without reviewing the implication of what they did, more like a genocide and greed and they all fell for it.
All success here is based only on human vices. If an investor is promised a high return, the investor's critical thinking is turned off and he is ready to take his money anywhere, as long as he is promised big winnings. Not all investors are like this, but a lot of them are.
I just think that UST was a test protocol that was poorly designed during the bullrun, it would have been better during a time like this when there there is no too much greed and excitement.
UST is an algorithmic stablecoin, and all algorithmic stablecoins have shown their complete failure and subsequently many companies abandoned such projects, and those companies that had already managed to launch their algorithmic coins quickly abandoned them, for example, NEAR.