Below lists the Top 10 address that holds UST as of 30th March 2022. The top being the Anchor Market followed by 2 unknown address that cant be found on the Terra blockchain explorer. Overall, Anchor protocol holds most of the UST in Terra and only few recognizable user made it into this list. That is aside of the 2 mystery address.

1.0 Introduction

Stablecoins is a form of crypto asset that is designed to follows the price real world fiat money such as US Dollars. Stablecoins that is successful to trace its real world counterpart is said to be kept at peg. When it fails to trace its fiat pair, it is said to lose its peg.

Why stablecoins?

Stablecoins are popular because it is much "stable" in relation to real world paper money. This allows user to shift a portion of their portfolio to avoid crypto assets volatility. various products to offer yields in stablecoin has also popped up in the last few years, thus giving DeFi the role of digital bank for crypto community.

How stablecoin works?

There are various mechanism for stablecoins to keep its peg with its fiat pairs. This section gives example of some of the stablecoins product to show the peg mecahnisms.

1. USDT

USDT is a centralized stablecoin by Tether. USDT peg mechanism is that they are allegedly backed by real world fiat USD reserve. So for every 1 USDT, there is 1 USD in Tethers reserve. This stablecoin has the largest Volume due to its dominance in CEXs and Ethereum.

2. DAI

DAI is a collateralized stablecoins. colateralization is a mechanism where user put 1Dollar worth of crypto assets like wBTC, or WETH, to mint 1 DAI. There are only limited crypto assets that can be use as collateral to mint DAI.

3. UST

UST is an algorithmic stablecoin or algo-stablecoins. The mechanism to keep its peg is the burning of 1 USD worth of LUNA to mint 1 UST. There are limited supply of LUNA and the burn LUNA cannot be retrieved. Thus it uses basic supply and demand mechanism where the more UST is minted, the higher the value of LUNA

2.0 Findings

What entities are the Top Holders of Stablecoins? (UST vs DAI)

2.1 UST

2.2 DAI

The top 10 holders of DAI were majority of "address" and only one contract address. "Address" here can be any things, either and escrow account, treasure reserve, bots or even users. The only smart contract address here is a "DAI ETH" contract.

3.0 Conclusion

The top holders of UST are Anchor Protocols, where various address related to Anchor and smart contract address were in the top 10 lists while ony 1 user address can be found. The top 10 holders of DAI are mostly entities ( either a treasury, bots or escrow account) and only 1 smart contract address