Historic bAssets Price Movements

    This entry will answer the following questions: What is the most bLuna has dipped in a X second window (based on bLuna price oracle timing)? Focus on the events of the Black swan event in mid-May. Make the default size of the window 30 seconds. - How much has bLuna drifted from its Luna peg? - How much has bEth dipped in a 30-second window? - How much has bEth drifted from the Ethereum Price?

    bAssets are a special kind of tokens unique and particular to the Terra Ecosystem. They are used as collaterals for getting loans on Anchor Protocol; a leading platform for deposit-and-borrow activities on Terra. Only 2 bAssests exist at the moment: bLUNA & bETH.

    As the names suggest, these two are based on LUNA & ETH proper. The "b" stands for "bonded", in which the user is bonding these tokens into the protocol to use as collateral. Users have to mint bLUNA & bETH on the platform using their LUNA and (m)ETH tokens.

    In theory, bLUNA-LUNA are pegged to each other in a 1:1 ratio, and the same goes for bETH-ETH. An Oracle is responsible for keeping this peg. But issues can arise causing this peg to drift away from the given ratio, this may include flash market crashes and sudden mass sells.

    Introduction

    The Most bLUNA dipped into (within a 30 Sec Window)

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    bLUNA-LUNA Peg Drift

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    The following figure explores the bLUNA-LUNA peg. We notice the May crash theme recurring again.

    Notable volatility within the peg was witnessed around three periods:

    1- During the May Crash.

    2- The first week of August 2021.

    3- The Last week of September 2021.

    Looking at the figure, we notice that the biggest dip was on the 23th of May 2021, a time when the whole crypto market was embroiled in a big crash.

    bLUNA became 4.27$ at its lowest point, coming down from 18.31$ some 3 weeks ago, suffering from a loss of about 75%.

    Average bLUNA-LUNA Peg

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    In order to further quantify the "amount" of peg drift, bLUNA-LUNA peg was averaged 3 times to see how it is performing:

    1- For the past year.

    2- For the past six months.

    3- For the past three months.

    The Most bETH Dipped into (Within a 30 Seconds Window)

    On 22 September 2021, bETH dipped to 2737$ marking its biggest dip since its inception into the Terra Ecosystem.

    bETH was around 3960$ on 3 Sep 2021 marking its highest high within the covered period. The fall was a costly 30%.

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    bETH-ETH Peg Drift

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    All in all, there was a general consistency with this peg. One exception is a spike on 24 September, in which it dipped to less than 0.94 ratio. From the figure, it seems that most of the peg was ranging between 1.01 and 0.98.

    Average bETH-ETH Peg

    To explore further the stability of the peg, its average for the past three months was queried.

    Since bETH is fairly new, only 3 months were averaged to provide an insight of the peg's mean.

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    General Table for Data

    The following is a general table containing all the important data on bETH, ETH, bLUNA and LUNA utilized in this entry.

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