Against the background of the collapse of the native token LUNA and the algorithmic stablecoin UST, Terra validators stopped the blockchain for the second time in one day. The step was explained by the need to develop a “recovery plan” for the network.

On May 12, validators were already shutting down the network to prevent “administration attacks” made possible by LUNA’s dramatic depreciation. The assignment function was turned off and work continued on the same day.

This time, Terraform Labs did not say what action the company would take to remedy the situation. The initiatives presented earlier did not save ecosystem assets from almost completely depreciation.

On May 10, the UST lost parity to the US dollar – the stablecoin was never able to return the stablecoin. According to CoinGecko, it is trading around $0.13 at the time of writing.

The price of the LUNA cryptocurrency used to issue the UST has dropped almost 100% in the past seven days. On May 6, the asset was valued at more than $80 – at the time of this writing it was priced at $0.0000059 (Binance exchange).

One of the measures proposed by the developers included expanding LUNA’s base pool and increasing its cryptocurrency emission. This will allow the so-called required amount of UST to be withdrawn from circulation faster.

Activation of the offer resulted in the number of LUNA in circulation exceeding 6.5 trillion coins. According to SmartStake, the UST offer is worth 11.3 billion.

Against the backdrop of the drop in the price of the native Terra token, cryptocurrency exchanges began to restrict asset-related transactions. On May 12, Binance delisted LUNA perpetual contracts paid into the underlying asset.

On May 13, the platform removed almost all trading pairs with LUNA and UST from the spot market. The exchange allowed users to sell their holdings for BUSD.

After the trading platform’s decision, the network recorded a massive stream of LUNA to Korean exchanges.

The massive surge of LUNA has led to price monitoring issues on the Chainlink decentralized oracle network that many DeFi projects use to run.

The Venus Protocol landing page reported a loss of $13.5 million. Chainlink’s oracles settings do not allow them to show the price of LUNA below $0.1 (the actual cost at the time was about $0.01). Attackers took advantage of this – they contributed millions of coins to the platform, using it as collateral.

A similar exploit was also reported by the Blizz Finance protocol on the Avalanche blockchain. It is not known what damage was done to the project.

Recall that CoinDesk journalists learned that Do Kwon was one of the anonymous co-founders of the crashed algorithmic stablecoin Basis Cash.