What are terrausd (Ust) & Terra (Luna)?

Ahead, we explain TerraUSD (UST) and Terra (LUNA) - the two main coins of the Terra blockchain. What is Terra (LUNA)? As per Terra’s white paper, the founders wanted to fulfill what Bitcoin originally set out to be: a peer-to-peer electronic cash system.

What is Luna (Luna)?

LUNA was a key piece to this system and was described as a staking or protocol token. The blockchain had implemented a dual token system between the stablecoin TerraUSD (UST) and LUNA to achieve this aim. USTs were minted by burning LUNA and could also be swapped for LUNA.

What happened to Terra Luna?

Click here for an in-depth price prediction for Terra Luna 2.0. After the TerraUSD stablecoin – now the TerraClassicUSD stablecoin – stopped being stable in relation to the US dollar, meaning that the value of UST had become depegged, the LUNA cryptocurrency collapsed.

How does Luna & Ust work?

However, in the case of LUNA and UST, it works slightly differently. In the Terra ecosystem, users can always swap the LUNA token for UST, and vice versa, at a guaranteed price of $1 – regardless of the market price of either token at the time.