Last updated at 2022/10/04
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TerraUSD, $USTC

USD-pegged Stablecoin

KPIs & Market Data

Market Cap
$305M
Market Cap 7d %
-5.85%
Market Cap 30d %
-1.52%
Volume 24h
$16M
Volume 7d
$343M
Mechanism
Governance
Decentralized
Issuer
Luna Foundation Guard
Jurisdiction
n.a.

UST is a decentralized and algorithmic stablecoin in the Terra Ecosystem. It is pegged 1:1 to the USD through an algorithmic stability mechanism based on a mint-and-burn system with Terra's native cryptocurrency Luna. The main purpose of UST was to boost Terra's defi ecosystem which offered a high yield for UST staker. In May 2022, UST experienced a death spiral by losing its peg and the investor's confidence in its ability to regain the value of $1. This led to arbitrarily high inflation of Luna caused by the algorithm to push UST back to its peg. However, the trust of the investors could not be recovered and UST still trades significantly below the value of $1.

Risks

  • Smart Contract Risk
  • Death Spiral under adversarial conditions (Bank run scenario)
  • Loss of all funds
  • Hyperinflation of price-floating coin

$USTC Newsticker

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