Liu, Jiageng; Makarov, Igor; Schoar, Antoinette - National Bureau of Economic Research - 2023
Terra, the third largest cryptocurrency ecosystem after Bitcoin and Ethereum, collapsed in three days in May 2022 and wiped out $50 billion in valuation. At the center of the collapse was a run on a blockchain-based borrowing and lending protocol (Anchor) that promised high yields to its...