When it comes to the death spiral of LUNA, you must first know the anchor protocol, which allows users to obtain an annualized 19.41% static income.
This is a very rare rate of return, because the normal annualized return of stablecoins is only about 5%, which means that if you get UST interest from bank loans, you can make a lot of money, provided it does not collapse.
But in fact, on May 6th, someone calculated the UST interest rate and calculated that the funds in the interest pool would be exhausted by May 25th, but in fact it did not last until that day, on the 10th. has collapsed.
Due to the problem of transaction depth, once there is a large amount of intensive selling pressure in a short period of time, it will cause the UST to break off the anchor, and because the UST fails to return to the anchor in time, the anchor panic will ferment.
Since there are 18 billion US dollars of UST funds on the anchor, when such a large amount of funds flees collectively, the UST de-anchoring is even more serious.
More importantly, BTC fell sharply that night, and altcoins fell sharply. The foundation could only sell BTC to support the market, which caused BTC to continue to fall and fell into an infinite loop.
The most terrible thing is that UST has not been able to return to the anchor, and the confidence of investors has been damaged.
After experiencing this death spiral, many people have been hit hard.
Because mature investors understand that LUNA is issued indefinitely, you do not know where the bottom line is, so no one dares to hold LUNA. When you think you are buying the bottom line, you find that the bottom line keeps dropping until you run out of money.

The Bear Market is being fought by Aptos (APT), High Street (HIGH), and RenQ Finance (RENQ)
INTRODUCTION As long as the crypto market keeps going up and down, many investors