How Much Brokkr Managed to Salvage During The Terra Crash?
The Terra crash devastated the entire ecosystem, wiping out individuals, projects, and institutions. It sparked the whole DeFi downfall we’ve seen in the last months.
Many projects didn’t make it, and only several survived and Brokkr is between them! In this report, we share all financial information from the Terra crash period, and the decisions we did.
Let’s start with how much we raised during the IDO to get the whole picture.
Raised funds during the IDO
- Whitelist Sale — March 30, 2022
Raised 1,203,223 UST
- Thorstarter IDO — April 1, 2022
Raised 2,747,253 UST
- StarTerra IDO — April 4, 2022
Raised 1,455,652 UST
In all stages we raised an astonishing 5,406,128 UST for the Brokkr Treasury!
In all IDO rounds, Brokkr has raised almost 5.5m UST! It is an amazing result we didn’t expect. It’s humbling to have a such strong community. You are also one of the reasons why we pushed so hard to switch chains and survive.
Seeding pool on Astroport
Then we continued to seed a pool on Astroport with the discovered price on Thorstarter — BRO = 0.19 UST
• 960,000 UST + 5,000,000 BRO
• Seeding $BRO price = 0.19 UST
The Terra Grande Crash Timeline
UST de-pegging was always a potential risk of having a token on Terra. The first small de-peg on April 26 was the first orange flag.
May 7, 2022
UST dropped 4% in price compared to USD, but it quickly stabilized back to 1:1 with USD. Many thought UST would hold its peg, but we remained cautious.
May 9, 2022
UST has de-pegged by more than 25%, it bounced back a bit, but never fully recovered. We were torn between two options. We could stay in UST as we strongly believed in the ecosystem, the community, and hope for the best. Or do something.
After tough discussions, we ultimately decided — It’s not acceptable to lose the funds we just raised together with the trust of people put in us. With zero funds would be hard to build Brokkr.
May 11, 2022 — 3m UST sold
3,000,000 UST have been transferred to various CEXes and exchanged for USDC, BUSD, and USDT. Unfortunately, part of the raised funds was still unavailable to us due to being processed and we couldn’t exchange everything.
May 12, 2022 — 1.45m UST sold
60% UST de-peg. We moved the remaining 1,450,000 UST from the IDO funds to CEXes to sell. We only kept the liquidity on Astroport for one more day if anyone wanted to sell their $BRO tokens and escape the madness.
May 13, 2022 — 557k UST sold
We took a snapshot of all $BRO holders and withdrew the liquidity on Astroport and funds bonded to the Brokkr Treasury. In total 557,000 UST + 9.6m BRO. That’s 403,000 UST less and 4.6m BRO more than what we seeded the pool with. That changed due to selling pressure, letting us withdraw more BRO but less UST.
Over the 3 days, we sold around 5m UST
Average price: 1 UST = 0.44 USD
Final Brokkr Balance
$2,220,000 has been recovered!
We recovered $2,220,000 out of 5,400,000 UST, and this time split in USDC, BUSD, and USD.
Brokkr has a runway for at least 18 months!
It is a substantial loss, but the most important thing is that Brokkr survived! And we want to reassure you: Brokkr has a runway for at least 18 months!
We salvaged the funds to be able to continue building. You’ve seen the new Investment app, and you have seen the new website. This is just the beginning of the new Brokkr that will be better than ever and will ship the best crypto investment app!
The next BIG thing is the AVAX $BRO token relaunch and airdrop of the new tokens! Coming in the next 2 weeks!
If you haven’t done that yet, link your Terra wallet with your Avalanche wallet to migrate your Terra $BRO to Avalanche $BRO!