- The stablecoin UST belonging to the blockchain Terra has managed to place itself in the fifth position of capitalization in the stablecoin market.
TerraUSD (UST) the blockchain’s decentralized and algorithmic stablecoin Terra has managed to position itself in the fifth tin of stablecoins by market capitalization.
TerraUSD was launched in September 2020, in collaboration with Bittrex Global, with the aim of offering a scalable solution for DeFi at a time when other leading stablecoins face severe scalability issues.
What makes UST different from the other stablecoins?
A decentralized stablecoin
One of the main characteristics that stand out of UST is its decentralization Since unlike, the main stablecoins such as Tether, USDC and BUSD are operated by centralized organizations.
For its part, Circle is the consortium in charge of issuing USD Coin (USDC), and Tether is responsible for issuing the leading stablecoin, USDT, while the third stablecoin BUSD is part of the Binance exchange.
Crypto asset backup
Another important feature of UST is that like DAI, it is backed by other digital assets While the leaders USDT and USDC are backed by centralized assets such as US Treasuries, cash and corporate bonds, while BUSD is backed 1: 1 by dollars that are guarded by the crypto company Paxos, according to Decrypt.
The fact that UST is backed by other assets makes it more complex to confiscate or hamper the underlying assetsThey are vitally important in allowing each stablecoin to remain pegged to the dollar.
TerraUSD mintage
For mining or minting a Terra UST, users have to burn LUNA, Terra’s native token which is used on the blockchain to cover transaction fees and participate in governance.
UST by Terra
Terra is an accredited network for layer 1 smart contracts developed using the Cosmos software development kit and is currently the fourth largest blockchain enabled for layer 1 smart contracts, behind only Ethereum, Solana and Cardano. behind Cardano, Solana and Ethereum.
Terra’s UST is practically a newborn asset, since it went on the digital market last September and its growth is due to a series of recent developments that the blockchain has led to revolved around adjustments in the burning mechanism of the protocol.
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