Warning: don’t buy the 99.99% dip

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The way the algorithm works for the mechanism means you can trade UST for equal value of LUNA. So the simple version is that when someone sells one UST for $0.40 then it creates another 400 LUNA if the price is at $0.001 per LUNA. And if the price is $0.0001 it will create another 4000 LUNA from that one UST.

So it might seem like a great deal and that you are buying the dip 99.99% down but the amount of coins is growing massively too. You can check their API here (link from coingecko)https://fcd.terra.dev/v1/circulatingsupply/lunaCirculating supply is now over 150 billion according to their API. over 3* as many as XRP. This will go to SHIB levels as that previously $13 billion of UST unlocks itself.

Anyway just a word of caution not to buy the dip becuase it will continue to dilute massively. I already lost some money myself buying the dip until I released how the minting mechanism works. Sorry its like 2 days too late. But hopefully this saves someone from making the same mistake.

submitted by /u/Exirr
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