Relationship between IMF and Terra:

The IMF has expressed concerns about Terra's algorithmic fixing mechanism. The IMF argued that the mechanism could be fragile, causing the value of the IHR to fall sharply. The IMF also argued that Terra's DeFi applications could pose risks to financial stability.

Terra has taken steps to address the IMF's concerns. Terra added more reserves to stabilize the UST and developed risk management protocols for DeFi applications.

The relationship between the IMF and Terra is complex. While the IMF recognizes Terra's potential risks, it also sees its potential to promote financial inclusion and innovation using blockchain technology.

Some of the IMF's concerns regarding Terra are:

The algorithmic fixing mechanism may be fragile and cause the value of the UST to drop sharply.

Terra's DeFi applications may pose risks to financial stability.

Terra's governance may be centralized.

Terra has taken steps to address the IMF's concerns:

It added more reserves to stabilize the UST.

Developed risk management protocols for DeFi applications.

It is working to make governance more decentralized.

The relationship between the IMF and Terra continues to develop. The IMF continues to monitor Terra's potential risks, while Terra continues to take steps to address concerns.