#TradingPairs101

Great! Let’s break it down in the context of #TradingPairs101 — a hashtag often used to explain or educate about crypto token pairs.

💡 #TradingPairs101: What Happened with UST/LUNA?

UST / LUNA was a famous trading pair and an example of an algorithmic stablecoin system. Here's how it worked (and failed):

ElementPurposeMechanismUSTStablecoin (pegged to $1)Maintained peg algorithmically, not with real dollars.LUNAGovernance + balancing tokenBurned or minted to help UST maintain its peg.

❗ What Went Wrong?

When UST lost its peg in May 2022, panic set in.

The system minted massive amounts of LUNA trying to re-peg UST.

This led to hyperinflation of LUNA and a complete collapse of both tokens.

$40+ billion in market value was wiped out in days.

📊 Compared with Other Pairs:

PairTypeKnown CollapseFEI / TRIBEAlgorithmic, but didn’t implode as severelyAMPL / FORTHElastic supply model, not a major collapseUSDN / WAVESAlso had issues, but not as catastrophic✅ UST / LUNAMassive 2022 collapse — correct answer

So in a #TradingPairs101 lesson, **UST/LUNA