Ad
CryptoSlate on X
Catch the latest in crypto by following us on X. Stay informed on the go.
Follow @cryptoslate
 Ad
News
Marathon Digital warms 80,000 Finnish homes with heat generated from Bitcoin mining Coinbase believes tokenization, DeFi will be key themes in 2025 amid pro-crypto policies EU’s upcoming crypto rules could impact liquidity due to USDT delistings Tether’s $775 million Rumble investment sparks stock 35% surge SEC Commissioner predicts early improvements for crypto ETFs under new leadership
Terra USTC surges 66% following approval to re-peg to $1 Terra USTC surges 66% following approval to re-peg to $1 Christian Nwobodo · 2 years ago · 1 min read
News ▸ ▸ Stablecoins

Terra USTC surges 66% following approval to re-peg to $1

The Terra Classic community has passed a proposal to relink LUNA Classic and the de-pegged USTC stablecoin.

Christian Nwobodo
Feb. 3, 2023 at 11:25 am UTC
1 min read
Updated: Feb. 3, 2023 at 11:25 am UTC
Terra USTC surges 66% following approval to re-peg to $1

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Join Japan's Web3 Evolution Today

Terra Classic Stablecoin Terra UST (USTC) has surged over 66% following a governance approval to re-peg the stablecoin.

Similarly, Terra Classic (LUNC) is also up 17.3% on the news, according to CryptoSlate data.

On Jan. 3, the Terra Classic community passed a proposal to relink LUNA Classic and the de-pegged USTC stablecoin.

Proposal to relink LUNC and USTC

Following the collapse of Terra empire in May 2022, the algorithmic stablecoin UST and sister token LUNA collapsed below zero. In efforts to restore the ecosystem, the tokens were rebranded LUNA Classic (LUNC) and USTC.

The LUNC community has considered several proposals in efforts to restore USTC to peg. In the meantime, the proposal to relink USTC and LUNC has received governance approval.

The community proposal seeks to restore USTC to peg through a combination of strategies which includes:

  • Holding reserves in multiple assets and currencies.
  • Implementing a buyback and burn mechanism to regulate the supply and demand of USTC.
  • Paying out interest in US dollars to incentivize holders to keep USTC when it is below peg and charge interest when the price is above peg.
  • Integrating multiple oracle system that provides exchange rate data to reduce the risk of manipulation by a single oracle.

USTC is currently trading at $0.0399, however, the community is optimistic that the approved proposal will help restore the token to $1.

Mentioned in this article
TerraClassicUSD Terra Classic
Posted In: , Stablecoins
Author

Christian Nwobodo

Journalist at CryptoSlate

Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.

Latest Terra Stories
Do Kwon’s extradition mired in controversy after Montenegro’s ex-Justice Minister alleges corruption

Do Kwon’s extradition mired in controversy after Montenegro’s ex-Justice Minister alleges corruption

Legal 3 months ago

Former Justice Minister Andrej Milović called on the US to pressure Montenegro's Prime Minister to ensure a comprehensive investigation of Terra's collapse.

Terraform Labs secures court approval to wind-down operations after settling with SEC

Terraform Labs secures court approval to wind-down operations after settling with SEC

Stablecoins 3 months ago

US Bankruptcy Judge Brendan Shannon approved Terraform's bankruptcy plan in Wilmington, Delaware, giving a green light to the wind-down.

Galois Capital hit with SEC charges for failing custody requirements

Galois Capital hit with SEC charges for failing custody requirements

Regulation 4 months ago

The charges and settlement are related to the hedge fund getting nearly $40 million stuck during FTX's collapse.

3AC liquidators file lawsuit against Terraform Labs seeking $1.3 billion in damages

3AC liquidators file lawsuit against Terraform Labs seeking $1.3 billion in damages

Legal 4 months ago

3AC liquidators have been aggressively pursuing avenues to recover funds for creditors since the firm's collapse.

Latest Press Releases
View All

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Featured Story

Advertise Here

In this article

TerraClassicUSD USTC (24h)
$0.02113 -7.34%
Vol: $34.54M MCap: $189.09M

TerraUSD (UST) is a decentralized and algorithmic stablecoin on the Terra blockchain.

More about TerraClassicUSD
Terra Classic LUNC (24h)
$0.00011 +4.8%

Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.

More about Terra Classic
 Ad
CryptoSlate on Substack cryptoslate.substack.com
Daily digest of top crypto stories and market insights. Never miss out.
Join 90k+ subscribers