What is TerraUSD (UST)? Everything you need to know about UST

• What is TerraUSD (UST)?
• TerraUSD (UST) Basics
• How many TerraUSD (UST) coins are currently in circulation?
• How Secure is TerraUSD (UST)?
• How UST . works
• Outstanding Features of UST
• High stability and scalability
• Simple exchange
• Bring high passive income
• High interoperability
• Where to buy and sell UST?
• UST . Storage Wallet
• Who is the founder of UST?
• Why is TerraUSD (UST) thriving?
• summary

What is TerraUSD (UST)?

TerraUSD (UST) is the decentralized and algorithmic stablecoin of the Terra blockchain. UST is a scalable and highly profitable stablecoin for investors with a value that remains stable at a 1:1 ratio to the US dollar.

TerraUSD (UST) Basics

• Token Name: TerraUSD
• Ticker: UST
• Decimals: 18
• Blockchain: Binance Smart Chance, Ethereum, Terra (Updating)
• Token Standard: ERC-20, BEP-20
• Contract:
  • ETH: 0xa47c8bf37f92aBed4A126BDA807A7b7498661acD
  • BSC: 0x23396cf899ca06c4472205fc903bdb4de249d6fc
• Token Type: Utility, Governance
• Total Supply: 2,819,977,668 UST

How many TerraUSD (UST) coins are currently in circulation?

TerraUSD (UST) is a Stablecoin built on the Terra blockchain. The UST token has no technical support. Instead, the UST will facilitate the burning of LUNA tokens.

The UST value fluctuates because it is driven by supply and demand for the asset and the price of US dollars. When the value of UST exceeds one US dollar, LUNA holders can sell tokens under the UST. Besides, due to the increased supply of UST, the price of LUNA also increased. As supply decreases, UST tokens can be converted to Terra (LUNA). This action increases the price of UST. Therefore, when a certain amount of LUNA is burned, it creates a scarcity and increases their value.

Terra's price chart on 11/05/2022

How Secure is TerraUSD (UST)?

TerraUSD (UST) is based on US dollars and is guaranteed by Terra (LUNA). LUNA is a reserve of assets that ensures the stability and security of the UST through the seigniorage process (income received from the issuance of coins).

Miners also play an important role in the security of the Terra ecosystem. Miners participate in Proof-of-Stake (PoS), providing stability by addressing short-term demand fluctuations for Terra. After all, the need for stable mining is one of the main requirements that should be guaranteed. Therefore, TerraUSD strives to provide a stable reward in all market conditions. In this way, TerraUSD can compensate those who are maintaining and building the network.

How UST . works

As an algorithmic stablecoin, to avoid the effects of cryptocurrency market volatility, Terra maintains the value of UST by ensuring that its supply and demand are always in balance. Terra used the LUNA coin as a price stabilization method for the algorithm that created the UST coin. To generate 1 UST, the user needs to burn an amount of LUNA worth 1 USD and vice versa. Simply put, users will burn LUNA to cast UST and burn UST to cast LUNA. Thanks to this mechanism, it helps to ensure that the value of the UST will always be stable against the US dollar. This is also the factor that makes UST different from other stablecoins. 

Outstanding Features of UST

High stability and scalability

UST is an algorithmic stablecoin, which is stabilized through its LUNA burning mechanism and money market. With this unique mechanism, the value of UST will always be stable around the US$1 level regardless of whether the demand for this coin increases or decreases. This makes it possible for DeFi projects using UST as a means of payment to scale without fear of UST price volatility affecting their applications, products and services.

Simple exchange

In addition to TerraUSD (UST), Terra also issues many other stablecoins including TerraCNY, TerraJPY, TerraGBP, TerraKRW, TerraEUR and TerraSDR for use in many different markets. The stablecoins in the Terra ecosystem all share a common liquidity pool, making it possible for users to exchange between these stablecoins relatively simply and quickly with an extremely low cost.

Bring high passive income

UST can be used to generate passive income through Anchor Protocol. With Anchor Protocol, users can use loan and savings features with interest rates up to 20%/year. Anchor Protocol uses smart contracts to create a money market between lenders and borrowers to maintain the above interest rates. To put it simply, Anchor Protocol is an online platform that helps connect borrowers with lenders. The project will take most of the interest from borrowers to pay depositors.

If the amount collected from the borrower is not enough to maintain the 20% interest rate for the depositor, Anchor Protocol will use the money in its reserve fund to make up the shortfall. Conversely, if the amount collected from the borrower is higher and there is still a balance after interest payment, that amount will be transferred back to the Anchor Protocol fund.

Other stablecoins such as DAI, USDC… through Terra's Orion Money project can also be converted into UST and deposited into Anchor Protocol to receive interest.

High interoperability

With Terra Bridge, users can use UST to participate, experience many decentralized applications and services on different blockchain platforms such as Ethereum , BNB Chain, Solana, Harmony , Osmosis ...

Where to buy and sell UST?

Currently, you can trade UST on many major cryptocurrency exchanges that list this token such as Binance, FTX, OKX, KuCoin, Uniswap, Terraswap …

UST . Storage Wallet

There are several types of wallets that support TerraUSD (UST) storage, such as Terra Station Wallet, Ledger, MathWallet, MetaMask, etc.

Who is the founder of UST?

Terra is developed by South Korea-based Terraform Labs, founded in 2018 by Do Kwon and Daniel Shin. Terra launched the first TerraUSD (UST) coin on Bittrex Global in September 2020.

Terra's development team has more than 70 members. Among them are many mathematicians, scientists and financial experts from many large technology companies and institutions such as Apple, Microsoft or the Federal Reserve Bank of New York. Some of the main members stand out such as:

• Do Kwon : He is the co-founder and CEO of Terra. Before Terra, he also founded Anyfi, a media networking company. He used to be a software engineer at Microsoft and Apple.
• Daniel Shin : He is the co-founder of Terra. Daniel has many years of experience and expertise in the field of e-commerce. He is also the founder and CEO of TicketMonster, Korea's leading e-commerce platform. He is also currently a board member of Fast Track Asia.
• Evan Kereiakes: He is in charge of financial research for Terra. Evan worked for 7 years at the Federal Reserve Bank of New York. He is also a Japanese portfolio manager of foreign exchange reserves.

Daniel Shin (left), Do Kwon (right)

Why is TerraUSD (UST) thriving?

In the past time, the Terra ecosystem has made great progress. As of March 2022, Terra's Тotal value locked (TVL) has reached US$23.3 billion, second only to Ethereum. LUNA coin has a market cap of 33.77 billion USD and is about to create a new ATH after growing more than 146 times since January 2021. Besides, the capitalization of UST also increased from 180 million USD at the beginning. in 2021 to more than 13.5 billion US dollars as at present.

Some of the reasons why the Terra ecosystem in general and the UST coin in particular have grown so strongly can be mentioned as:

• UST and Terra stablecoins are used as a means of payment at CHAI, a popular payment app in South Korea and Southeast Asia. Money in the CHAI app is connected to the money in the user's bank account. Through the blockchain technology of the Terra platform, users can transfer money and pay in a fast, simple way with extremely low costs.
• In 2021, Terra received $175 million in investments from major investment funds such as Galaxy Digital, Coinbase Ventures, Pantera Capital, Hashed, etc.
• Terra released updates that reduced the supply of LUNA as well as enabled the IBC feature that allows the coins/tokens on its platform to interact with other platforms on the Cosmos Hub and Secret Network. Besides, Terra also supports Wormhole V2 bridge to help connect this platform with other blockchain platforms such as Solana, Ethereum, Avalanche...
• On November 10, 2021, Terraform Labs decided to burn 88.7 million LUNA to mint more USTs to increase the supply of this stablecoin.
• Developing the Anchor Protocol project, Orion Money helps attract money from other stablecoin projects to Terra and UST.

summary

Hopefully with the above information, readers have a better view of the TerraUSD (UST) coin and the Terra ecosystem. UST is the first stablecoin that provides the ability to generate passive income with high interest rates up to 20%/year and the ability to move and exchange between different platforms while maintaining stability and reliability. high expansion. Thereby giving users many new and unique experiences, which previous stablecoin projects have not been able to do. This deserves to be an investment option not to be missed by any investor, especially those who have faith in the future development of the Terra ecosystem.

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