Introduction

A stablecoin, unlike a "regular" token, is pegged to a real-world currency, most commonly the US dollar.

Usually, a "centralized" exchange does this. Governments often oversee central exchanges, and exchange owners typically keep customers' money like a private key. So they back their stablecoin in theory, with the currency they are pegging it to. This is a big concern for decentralization advocates.

For its peg mechanism, the decentralized stablecoin leverages arbitrage opportunities embedded into the protocol's algorithm. The Ethereum DAI token is the first extensively used example.

Terra stablecoins are part of a broader family of native stablecoins known as "Terra". They represent main fiat currencies worldwide.

The coin's price deviates from its peg, creating an arbitrage opportunity to bring it back to its peg.

The movement of Luna is another concern in the Terra network.

Luna is the Terra network's native token. Validators are compensated in this money to keep the system secure. Luna must talk to the network's apps (DAPPS). To "burn" Terra, one "mints" (as detailed below).

A major difficulty for any money, digital or not, is inflation. Using Bitcoin's proof-of-work system, one can limit the amount of bitcoin that can be mined. In a "Proof of Stake" technology like Terra, tokens are obliterated rather than shifted from one address to another. This is a fire.

The UST is the monarch of stablecoin minting. Actually:

We can see the link between UST supply and Luna consumption by looking at just UST supply.

We'll need the database schema to use Flipside Terra's swap table. Here are the results and visualizations. Our work is checked by daily balances and oracle price tables.

I used swaps to depict the 700:1 UST:non UST imbalance. For all UST and non-UST burning, the total luna tokens are queried.

Method

Let's get down to the business of this dashboard! Let us begin by responding to the original query, which was fairly specific.

week that the most volume of Luna burning happened

All Luna burning transactions from the launching day are retrieved from the swap table. The amount is all that is needed to answer this particular question. However, we'll go ahead and sum everything up for the week as a whole. However, don't worry, we still have access to our clever equipment, so the total will be forthcoming. Let's get that information...

Analysis

Observation

• According to the weekly bar chart above, summits in LUNA burning occur in the first week of March 2021, followed by September 2021, November 2021, and March 2022.

Next chart

• In the following chart the suplly of UST are shown, and shows that the supply is in uptrends to now over time.  

Conclusion

• The highest burn of LUNA was executed on the first week of February 2021, which was the introduction and launch of Project Surge, according to Terra USt's Twitter tweet. 

Discord: 0xHaM☰d#8391

Introducing Project Surge

• Project Surge pays community members that start, engage in, and carry out integrations of Terra assets into DeFi protocols on various blockchains. You have the option of leveraging previous ties with projects, proposing governance recommendations, or encouraging technical debates about Terra assets.