This dashboard provides some rudimentary analysis on how stable terra's stablecoins really are. We start off by analysing UST and the n show that most stablecoins' performance are highly correlated to each other and are caused due to similar events.

Looks like most of the deviations are tight (up to 1%), it also seems like black swan events cause the price go off by 4-5%. This might be due to people panic-selling UST causing an excess supply. As UST goes through these black swan events and comes out stronger it is likely people will tend to panic sell less and just wait for it to go back to its value.

UST Peg

Other Stables

The graph below proves our postulate that the peg deviation of the stablecoins are extremely correlated with each other (the deviation is computed by using the average value of the stablecoins in USD over a period of 6 months as the peg value since we don't have their actual values in their fiat equivalents). The maximum seems to be somewhere close to 7% which is slightly higher than the deviation of UST.

It also seems like as KRT's usage has grown in Korea its deviation from the peg has decreased. Other stables that haven't see as much adoption seem to have higher deviations from the peg. It is likely that with more on-chain adoption of stablecoins we will see lower peg deviations!

Let us now look at the other stablecoins in the terra ecosystem. The exact value of each stablecoin vs its pegged fiat currency doesn't seem to be available in the data, for example, to calculate the KRT vs KRW peg we'd need to be able to calculate KRT price in KRW (which is not known to us). As a proxy, we compute the average price of each stablecoin in USD across the last 6 months and measure the deviation from that price.

The important thing to note from the graph below is that all stables seem to be highly correlated with each other. The deviations off peg not only happen at the same time but also seem to be of similar size percentage-wise (we can see that on the graph based on the regions where the stablecoin values changed a lot like Feb 2021 and right before Apr 2021).

It does look like as the adoption and activity on Terra has grown UST has been able to maintain its peg better.

Now, let's figure out how often the value of UST is significantly off its peg by bucketing the deviation into buckets of size 1%:

The graph below drives the point made by the previous graph home. We see the highest deviations on a daily basis for UST are around 5% or 0.05 (note: this is a deviation from the peg in either direction on an absolute scale):

Let's start off by looking at the peg for UST in a very simple graph. This graph is a starting point showcasing the deviation of the value of 1 UST around 1 USD. As we can see there are certain times where the value of 1 UST has been 4-5% off its peg but has luckily returned to its equilibrium value of 1 USD each day (this data has been averaged across the price of UST for the whole day to keep things from being too laggy, all future data in this dashboard will also have similar treatment for consistency):