Warning: don’t buy the 99.99% dip


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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