Crypto exchange OKX has discontinued margin and borrowing services for Terra ecosystem tokens such as Luna (LUNA), Anchor (ANC) and Mirror (MIR) and would end spot listings against TerraUSD (UST) later Friday, the company confirmed in an email to CoinDesk.
OKX will end the exchange-traded UST market at 10:00 a.m. UTC on May 13, 2022 for Bitcoin (BTC), Avalanche (AVAX), Solana (SOL) and Ether (ETH).
The lending function for Terra ecosystem tokens LUNA, ANC and MIR was closed after 04:00 UTC on Friday. Margin trading was suspended and all market orders were cancelled. In addition, perpetual swaps were suspended at 8:00 UTC.
"Seismic moves in the crypto market like we've seen this week usually lead to some pretty brutal lessons," Lennix Lai, director at OKX, said in an email. "We are seeing a flight away from direct investment in DeFi protocols in the wake of the UST collapse."
"The reality is that centralized exchanges are set up to provide a much higher level of protection to users no matter what the markets do," Lai added.
UST slumped as low as 22 cents earlier this week amid a bank run. Prices of the related LUNA token fell 99.7% to pennies on Thursday, after topping $60 earlier in the week.
LUNA and other tokens continue to trade on crypto exchanges FTX and Gate as we write. Popular exchanges like Binance suspended trading on Thursday, citing risks to users.