What is terrausd (Ust)?

TerraUSD (UST) is an algorithmic stablecoin, which means the cost of minting is equal to the face value of the minted stablecoins. It uses LUNA, Terra’s native cryptocurrency, as a reserve asset. In other words, if you want to mint one TerraUSD, only $1 worth of Terra’s LUNA token is burned out of the system.

What is Ust & how does it work?

Instead, UST — or “terraUSD” — is created by destroying a sister token, known as luna, using smart contracts, lines of code written into the blockchain. “If you’ve got, say, $405, and you burn one luna, you should be able to mint 405 of the UST stablecoin,” Carol Alexander, professor of finance at the University of Sussex, explains.

Is terrausd a stablecoin?

They will debut TerraUSD on Bittrex Global in September 2020. TerraUSD has outperformed numerous stablecoin competitors in the market since then, including GUSD (Gemini) and PAX (Paxos). Terra is TerraUSD’s own blockchain, which Terraform Labs created (a subsidiary of Terra Alliance). Do Kwon is the CEO of Terraform Labs.

How does terrausd work?

Terra works by using a few easy to handle protocols. This allows the users to access the key features of TerraUSD. These features include: To provide the best experience to its users, TerraUSD makes the best use of existing technologies. Since it’s an algorithmic stablecoin, the minting cost is equal to the recently minted stablecoins.