The “road to hell is paved with good intentions,” but that’s no comfort to the many people who have lost all their money as a result of the estimated US$50 billion Terra UST/Luna crash, a crash that took place in just three short days. A decentralized stablecoin designed as the ultimate payments system “combining the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin” that didn’t require any financial collateral seemed fine in principle, but when it stopped working, human collateral damage was the end result, both in terms of loss of savings and devastation of lives.
