From Orion9R:. Quick Update for LUNA, UST LPs.
11 May 2022, 23:42
From Orion9R:
Quick Update for LUNA, UST LPs
THORChain is neutral to the assets on it, as long as they are not malicious to the Protocol. There is no reason for nodes and Community to not continue to support the chain and afford it it's privileges, such as Impermanent Loss Protection.
Due to recent events, Luna and UST LPs have incurred substantial Impermanent Loss.
THORChain provides Impermanent Loss Protection (ILP) to liquidity providers to help mitigate risks to providing liquidity on THORChain. Rune from the Protocol Reserve funds this coverage.
Luna and UST pools are miss-priced due to Terra halt.
Using market prices (coingeko) the following liability can be calculated:
Current ILP Liability for THORChain
UST: 108,556 RUNE
LUNA: 203,522 RUNE
TOTAL: 312,078 RUNE
Current Reserve Balance
111,312,196 RUNE
(Standby Reserve: Additional 60,000,000 RUNE)
Terra ILP Liability 0.28% of Current Reserve.
Even in extreme circumstances THORChain’s design can mitigate impacts to LPs ⚡ 💪
Terra is still halted. Expect more updates as the situation develops. 🫂 🌙
Thanks for your patience in these crazy times.
script:
More on how THORChain ILP works:
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