Dear readers: The collapse of Luna & UST is a major event in the cryptocurrency market in recent times. In this article, we analyze the reasons for this crash and discuss how similar incidents can be prevented in the future. 1. Event overview In May 2022, Luna & UST experienced a sharp drop. Some market analysts believe the crash was caused by erratic online transactions. They point out that the Luna protocol requires token liquidity to store its stablecoin, UST. However, in the case of a sud...