Well no surprise this happened to UST, their dollar peg is just a mint burn algo to for correction but wild market fluctuations will definitely put it to the test as we've seen here.

I think it's a cool idea but in long term practicality I don't see how you can rely on it. Crashes aren't all the same and this wasn't even a big one, how long until you can confidently say this crash won't affect it? Would you really leave all your holdings in UST/LUNA knowing this is possible?

If Luna Foundation Guard (aka the federal reserve of UST if this context) has to come out and save the day then they don't really have a functional product and it's a just a business desperately trying to stave off bankruptcy. What's the difference to our modern economy?