Terra LUNA -12% Today, -35% Week

LUNA price → sub-$44. Weekly loss extends. Broader crypto sell-off slows; Terra doesn’t.

Terra Ecosystem Risk → MIM Link

Negative sentiment: Terra ↔ Magic Internet Money (MIM).
Partner Abracadabra ↔ Wonderland.

Abracadabra deposits UST → borrows MIM → stakes on Wonderland → 13000% APY.
Colin Wu explains:

Abracadabra: users deposit UST → borrow MIM → auto-swap back to UST. UST mechanism links Luna price to total locked UST. MIM problem → danger to Terra ecology.

Terra Recovery?

Uncertain. Focus: Anchor Protocol. Anchor generates highest demand for Terra’s UST stablecoin.
Anchor: earn on $UST, borrow $UST using $LUNA/$ETH collateral.
See thread: jarzombek for full correlation/yield.

Anchor Corrective Measure

Last Saturday: Anchor raised bLUNA LTV → 80%.
Anchor notes:

LTV↑ → bLUNA collateral capital efficiency↑. Needed for loan revenue↑ & borrowing competitiveness vs other protocols. Also encourages borrowing.