The live price of TerraUSD today is $0.02 USD. TerraUSD is up 0.00% in the last 24 hours compared to $USD. TerraUSD has a live market cap of $ USD, and a circulating supply of UST.
What Is TerraUSD (UST)?
TerraUSD is a stablecoin that was created to deliver value to the Terra community. It is a scalable, yield-bearing coin that is value-pegged to the US Dollar. TerraUSD offers users a higher level of scalability, interest rate accuracy, and interchain usage than other stablecoin leaders like Dai.
TerraUSD’s benefits have made it a standout stablecoin competitor. UST fulfills the conditions of DeFi protocols it employs without sacrificing scalability due to its minting mechanism. UST may also be easily integrated into digital wallets by allowing users to pay with TerraUSD. TerraUSD has shown its strength in DApps, for example. Digital platforms that create fungible synthetic assets and track real-world asset prices rely on UST as a pricing reference.
In September 2020, TerraUSD (UST) was launched in collaboration with Bittrex Global, and it has since earned a bad reputation for being the most scalable stablecoin. UST is compatible with LUNA, Terra’s non-stablecoin cryptocurrency, or used as a stand-alone token.
Who Are the Founders of TerraUSD?
In April 2019, Do Kwon and Daniel Shin founded Terra (LUNA). In September 2020, they launched TerraUSD on Bittrex Global. Since that date, TerraUSD has been more successful than many other stablecoins in the market, such as GUSD (Gemini) and PAX (Paxos). Terra is built on its own blockchain, called Terraform Labs.
Terraform Labs was founded by Do Kwon, a former software engineer at Microsoft and Apple. He previously led Anyfi, a business that provided decentralized technology for wireless mesh networks. Kwon is one of the Forbes 30 Under 30 entrepreneurs to watch in 2019.
Daniel Shin is a talented economist and entrepreneur. He co-founded Fast Track Asia, a startup incubator. He also co-founded and led TMON (Ticket Monster), a South Korean e-commerce platform.
What Makes TerraUSD (UST) Unique?
- Enhanced Scalability
- TerraUSD is a stablecoin that has a value equal to the face value of minted stablecoins. To issue 1 TerraUSD, you need to burn 1 LUNA reserve asset. This allows TerraUSD’s monetary policy to scale nearly without limits, helping DeFi projects reach their full potential.
- Easy Exchange
- The different stablecoins in the Terra ecosystem all share the same liquidity. This means that you can exchange TerraUSD for TerraKRW (the stablecoin pegged to the Korean Won) with minimal fees.
- Passive Income Potential
- You can also use TerraUSD to get passive income by using Anchor’s stable interest rates. Anchor is a lending protocol that promises a 20% return on UST savings. You will also get rewards in PoS chains for holding Terra, which helps to keep the stability of the coin. This makes it possible to have a reliable interest rate.
- Interoperability
- The Dropship bridge protocol connects blockchain ecosystems. Dropship helps TerraUSD be integrated into numerous platforms, like DeFi and Dex. Most importantly, Dropship helps move assets between chains. The Luna coin helps stabilize the value of TerraUSD. This is important because it guarantees a stable cost of UST.
TerraUSD is the first decentralized stablecoin that offers interest earnings, great scalability, and easier interchain movement.
Anchor Protocol Yield Reserve Top Up
Anchor Protocol is a decentralized savings protocol that pays low-volatile yields on deposits in TerraUSD. The Anchor yield (around 19.5%) comes from rewards for staking major proof-of-stake blockchains and from interest paid by borrowers. The community believes it could be the reference interest rate in crypto.
Anchor’s total deposits have grown from $2.5B in early December 2021 to over $6.5B currently. Over $10B worth of UST is currently locked up in the protocol, as people are piling on to take advantage of the attractive yields during the market downturn. As a result, concerns over the protocol burning through its yield reserve (at around $2M a day) to maintain high benchmark returns have grown. On Feb. 18, 2022, the founder of Terra, Do Kwon announced an Anchor yield reserve top-up of $450M. The yield reserve now sits at over $500M.
How Many TerraUSD (UST) Coins Are There in Circulation?
TerraUSD (UST) is a stablecoin that is built on the Terra blockchain. The UST token does not have any technical support. Instead, the creation of the UST is facilitated by burning LUNA tokens.
The UST (United States Treasury) value goes up and down because it is based on how much people want it and how much the US dollar is worth. When the UST is worth more than a dollar, people can sell their LUNA tokens for UST. As an extra bonus, because there are more UST tokens, the price for LUNA is also going up. But when people want to make money by selling their UST tokens, Terra (LUNA) can be bought with them. This brings the price of the UST back down to its target level. This action burns a certain amount of LUNA, which makes it scarcer and increases its value.
As of June 2021, there is a limited supply of about 1.93B UST coins. These coins are known for their scalability and functionality, making them one of the most notable stablecoins in the cryptocurrency market.
How Is the TerraUSD Network Secured?
TerraUSD is pegged to the price of a dollar. This means that it always has the same value as a dollar. Terra is an asset reserve that ensures the stability and security of the UST through the seigniorage process (income received from an emission of money).
The TerraUSD protocol is designed to provide stability by providing stable rewards to miners in all economic conditions. This way, TerraUSD can provide compensation to those who protect and build the network.
Where Can You Buy TerraUSD (UST)?
To buy TerraUSD, you need to have Bitcoin or Ether. You can use these currencies to swap for UST on the exchanges where the token is listed. These exchanges include KuCoin, Uniswap (V2), Bittrex, Bitfinex, Gate.io, PancakeSwap (V2), Sushiswap, Terraswap, 1inch Exchange, MEXC, OpenOcean, DODO BSC.
