Formerly known as TerraUSD (UST), it is an algorithmic stablecoin.
Terra ClassicUSD (USTC)
TerraClassicUSD (USTC) is a decentralized algorithmic stablecoin on the Terra Classic blockchain, rebranded from TerraUSD (UST). As a result of the depeg of USTC in May 2022, the Terra community decided to create a new blockchain without algorithmic stablecoins.Terra 2.0. The original blockchain is renamed as Terra Classic.
Users can trade 1 USD of Luna for 1 USTC by using the market swap feature of Terra Station. If 1 USTC is trading at 1.01 USD, traders can trade 1 LUNC for 1 USTC. The market burns 1 USD of LUNC to produce 1 USTC. The user then sells their 1 USTC for 1.01 USD, profiting .01 USD through arbitrage. Arbitrage continues until UST price reaches USD price, maintaining Terra's peg. This process is similar if USTC falls below a dollar value.
As at May 31st, 2022, the total and circulating token supply of USTC is 10,269,448,617.
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