89 [THOR] IL Protection By Pool
Observations
Last Week
With the collapse of Terra last week, we saw the Terra UST pool payout a ton of IL protection. However, surprisingly the BUSD pool paid out the most IL protection. This is surprising because this is a stablecoin which means that the drop in price of RUNE was the reason for so much IL protection paid out.
BUSD dominates here with ~45% compared to UST with ~36% which is similar to the weekly timeframe we saw above.
The BUSD pool dominated about ~49% of the IL protection paid out last month with the UST pool close behind at ~35%.
Conclusion
Why did BUSD pool pay the most IL protection? esp. more than UST
BUSD paying out the most IL is very surprising but I think it's most likely because of the general distrust of stablecoins with the crash of UST. After the UST crash started, the Terra chain was paused for adding or removing liquidity while Binance chain was not. Therefore, I think a lot of people took out capital from the BUSD pool while UST was paused.
If the Terra integration had not been paused, then we would have likely seen the UST pool be much much higher.