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As per the latest reports, the Terra collapse earlier in May was not the work of a single big player but a total of seven wallets pointed by on-chain data from Terra to Ethereum. The report also mentioned that the hackers or attackers do not have any kind of involvement with the UST de-pegging.
The report titled “Demystifying TerraUSD De-Peg” is an attempt by Nansen to reach the root cause of the Terra crash. The attack was executed by a group of seven well-funded wallets within the Terra ecosystem. The researchers at Nansen studied on-chain data between 7 -11 May and traced the starting of the Anchor protocol on the Terra ecosystem.
The seven wallets- first began extracting UST liquidity from Anchor. Afterward, they move the liquidity to Ethereum through Wormhole bridge and were later swapped for other stablecoins on
Curve’s liquidity pools. At last, arbitrage opportunities were propped out because of the inefficiencies between Curve and various other exchanges which resulted in the de-pegging of TerraUSD.
These ‘Seven’ Wallets Are Involved In Terra’s Crash: Says Report
The report flagged the following wallets:
- 0x8d47f08ebc5554504742f547eb721a43d4947d0a (EIP 1559 User)
- 0x4b5e60cb1cd6c5e67af5e6cf63229d1614bb781c (Celsius)
- 0x1df8ea15bb725e110118f031e8e71b91abaa2a06 (hs0327.eth)
- 0xeb5425e650b04e49e5e8b62fbf1c3f60df01f232 (Heavy Dex Trader)
- 0x41339d9825963515e5705df8d3b0ea98105ebb1c (Smart LP: 0x413)
- 0x68963dc7c28a36fcacb0b39ac2d807b0329b9c69 (Token Millionaire / Heavy Dex Trader)
- 0x9f705ff1da72ed334f0e80f90aae5644f5cd7784 (Token Millionaire)
The Collapse Is No Attack
Further, the report states that a small portion of individuals even found the vulnerabilities that led to the collapse of the ecosystem:
The report concludes that the on-chain study disapproves of the narrative that destabilizing UST is the work of one “attacker” or “hacker.” Rather, it is revealed that a “small number of players identified and arbitraged vulnerabilities” relating to the shallow liquidity of the Curve pools that ensure the security of the UST’s peg to the other stablecoins
The report is expected to assist security protocols on blockchains to avoid such a situation from happening again. The vulnerabilities pointed out in the reports must be corrected in time if such an attempt in the future.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
