![]() The largest stablecoins are Tether (USDT) and USD Coin ( USDC), each of which commands a market cap of $80 billion and $52 billion, respectively.Īfter sheer price performance, LUNA has also just become the most-staked cryptocurrency, overtaking Ethereum and Solana, according to data pulled from Staking Rewards. UST is the crypto market’s largest decentralized stablecoin (meaning it’s not backed by a singular entity nor can its reserves be easily blacklisted or frozen) and the fourth-largest stablecoin overall. This destroys UST, reduces supply, and, theoretically, pushes the value of UST back to $1. ![]() This mechanism helps keep UST pegged to the dollar, for whenever it falls below its peg, market participants are incentivized to swap the discounted UST for LUNA. The opposite is also true: In order to create $1 worth of LUNA, users must destroy $1 of UST. Terra’s other token, LUNA, serves as a staking and governance token, letting users vote and make proposals about how the protocol should be improved.īoth tokens are also deeply interconnected too.Įach time $1 worth of UST is minted, an equivalent amount of LUNA is destroyed. ![]() The project has attracted significant attention of late due to the steady rise of its native U.S dollar-based stablecoin, UST. Terra is a crypto network built using the Cosmos software development kit (SDK). ![]()
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