imo the problem with UST vs DAI was not under vs over collateralisation, but rather that Luna supporting UST had its value tied to UST adoption. On the other hand, DAI is collateralised by things like Eth, which could also in theory crash, but get their value from a much wider ecosystem than just DAI - hence one potentially avoids the circularity.
For a great read on this and more, check out Vitalik's post: https://vitalik.ca/general/2022/05/25/stable.html
Re:The Depegging of UST
by pcthrowaway on Monday June 06, 2022 @02:16AM
(#31637685)
I second the recommendation to learn about Uniswap. Uniswap was really the beginning of the defi explosion of the last couple of years
For AMMs, same applies to Uniswap. Their whitepapers(V1,V2,V3) are both accessible and formal enough to be useful.
Also this paper from Curve https://curve.fi/files/stableswap-paper.pdf
Projects like Terra and Anchor are messy enough (some might say willfully misleading and opaque) that you want to be able to recognize lingo and patterns (and, ideally, source code) to come out with somewhat useful results. In some cases, you'll need to be monitoring their Discord, Twitter, and/or Telegram groups to follow them properly - though in those cases, I've taken that as enough of a red flag in itself to disqualify the entire project from my attention.