In this article, You will read about UST and Luna daily burned and vice versa. Also, you will see the total amount and total number burned in the charts.

All data from this presentation is from January 1st, 2022, until April 22, 2022.

What will you read?

What is Luna?

Luna (LUNA) and TerraUSD (UST) are two native tokens of the Terra network, a blockchain-based project developed by Terra Labs in South Korea.21 Mar 2022

Method

When UST is trading above $1, arbitrageurs can burn $1 of LUNA to mint 1 UST and sell UST on the open market for a profit. When UST trades below $1, then arbitrageurs can buy UST on the market at a discount and swap it for $1 worth of LUNA. This profit extracted through burn-mint LUNA-UST incentivizes users to take part in stabilizing UST.

I used terra.swaps table to find all swaps between UST to LUNA and vice versa. Only native swaps cause burn and mint. The terra.swaps already filter only native swaps.

You will see charts in three parameters. since 2022-01-01:

• Total amount of burn and mint

• Total amount of burn and mint in USD

• Total number of burn and mint

UST - LUNA

In theory, When native swaps from UST to LUNA happen, UST burn and LUNA mint. So in the below charts, You can see the total daily amount of UST burnt, and the total amount of LUNA minted.

LUNA - UST

The chart below shows the total swaps from UST to LUNA from January 1st until April 20th, 2022.

There are some trends on this chart:

• The most swapped day is Feb 7th. More than 6500 swaps happened that day.

• We can see another trend on April 17th with 3037 swaps and Jan 28th with about 2K swaps.

• From Feb 12nd until March 12nd, the total number of swaps decreased significantly.

As we know, the total amount of UST and LUNA are almost the same. When you swap UST to LUNA, UST burn, and LUNA mint. The below chart shows this theory precisely.

It's time to look at UST burnt from January until April.

As you can see in the below chart, There are too many up and down in the total amount of UST.

• The massive amount of UST burnt on March 9th.

• From Feb 23rd until March 9th, the total amount of UST burnt has increased.

• From March 10th until March 25th total number decreased. Although during that days you can see an increased amount but the average of the total amount is decreased

• There are some days that the total amount increases. Like Jan 22nd, Jan 28th, February 24th, February 28th, and March 28th.

• There are some days in January and February when the total amount decreased.

• The average of Burnt and minted increased in April and has a better average in comparison to the previous month.

According to the below chart, You can see the total amount of LUNA minted from January 1st until April 20th.

Because of Terra's mechanism, Trends are the same as UST burnt. When the total amount of burnt UST increased, The total amount of minted LUNA increased too. So trends are the same.

As you read, I examined UST to Luna swaps. Now it's time to go through LUNA to UST swaps.

The chart below shows the total swaps from LUNA to UST since 2022-01-01. There are too up and down in the chart.

• From March 29th until April 5th, the total number of swaps increased significantly. More than 40K swaps happened in that time.

• There are three days in which total swaps are above 4K. Jan 16th, Jan 24th, and April 20th.

• From January 29th until Feb 10th, the total amount of swaps decreased.

What the above and below charts say to us:

• The wave of the increasing amount of UST and LUNA started on Feb 11th and continues until now. Although there are some days, the total amount dropped. Like April 7th until April 11th.

• From Jan 29th until Feb 10th total amount decreased.

• With 165M UST minted, the highest amount occurred on March 8th.

• About 2.7M LUNA burnt on Feb 24th. Also, 2.4M Luna burnt happened on Feb 18th.

• During the high amount of burnt and minted, On Feb 20th decreased.

Thank you for reading

Written by Heess

where

Discord_id: hess#0890

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twitter_id : @hessaminanloo