3.0 The UST Bank Run

3.1 UST Swap Volume: In and Out

The chart belows shows the amount of UST flown from wallets acquiring or dumping UST via swaps. On may 6th, we can see that there is a large surge in volume for both swaps directions.

2.0 UST peg failure

The chart below shows the peg of UST on Ethereum. It has started to slightly fall off its peg on April 22nd, but began to significantly plummet beginning May 10th.

3.2 From UST to which Stablecoin?

The Volume of UST being swapped into Other stables shows an increase during May 8th, which is around the date where UST peg fails on Ethereum. USDC shows that it becomes the stables of choice when bailing from UST, followed by USDT.

From the Pie chart above, it visualizes the amount of UST dumped for other stablecoin. USDC dominates by being the majority of swapped for from UST. USDT holds 8.16% and the reset were a meager sub 1%. This shows how dominant USDC as the stablecoin of choice among Solana users, at least amongst those who held UST.

3.3 UST Holders that swapped for Other Stable coins

Since April 1st, USDC were popular and still is, stablecoin safe haven among UST holders on Solana. Even USDT manage to only capture the attention of 1338 UST holders. PAI, USDH and UXD only managed to win not even 500 UST holders.

1.0 Introduction

During the UST depeg last week, it has caused a bank run as everyone tries to claim their 1 UST for (about 1 dollar worth of) other stablecoins. This has caused massive sell of UST , essentially causing large supply and lower demands. This devalues further the UST as stablecoin, worsen its peg issue. This has also impacted UST holders on Solana. This article studies the Stablecoin dynamics on Solana Ecosystem, beginning 1st April