Terra Classic Advocates Propose Plan to Re-Establish USTC’s Peg With US Dollar, Token’s Value Surges by Over 9%

Terra Classic Advocates Propose Plan to Re-Establish USTC's Peg With US Dollar, Token's Value Surges by Over 9%

Almost 12 months back, terrausd (UST), an algorithmic stablecoin, suffered a detachment from the U.S. dollar, causing the Terra ecosystem to crumble shortly thereafter. At present, supporters of the Terra Classic blockchain community are deliberating on a plan to revive the ecosystem by re-establishing the once-stable token’s peg with the U.S. dollar. In response to the proposed development, the value of UST, renamed USTC, has escalated by more than 9% in the past 24 hours.

Terra Classic Community Plans to Take Action to Restore USTC’s Peg With USD

Terra Classic blockchain supporters aim to revive the algorithmic stablecoin’s ecosystem by restoring the token USTC’s value parity with the U.S. dollar. A Terra Classic community member using the pseudonym “Redlinedrifter” submitted the proposal, affirming that Do Kwon’s decentralized money creation was a positive initiative but that “serious issues need to be addressed” for the community to re-establish the token’s value peg with the U.S. dollar.

USTCUSDT chart by TradingView

Redlinedrifter presented the “Divergence Protocol” idea, which “operates by applying an algorithmic/dynamic fee equivalent to the difference between the peg and the market price.” The innovative mechanism would implement a dynamic fee structure to impose a fee proportional to the deviation between the $1 peg and the token’s market value. The divergence fee structure represents a fresh strategy to tackle previous challenges that hindered the USTC’s ability to maintain its U.S. dollar peg.

This is not the first time members of the Terra community have proposed revamping Do Kwon’s stablecoin idea. In October 2022, a new “soft-pegged stablecoin” concept built on the Terra Phoenix network was introduced in a white paper. Following the news of USTC’s revitalization plan, the once-stablecoin asset has increased in value by 9% against the U.S. dollar. After reaching a low of $0.0195 per unit on Friday, USTC has risen to a high of $0.0218 per coin by 1:15 p.m. Eastern Time.

What do you think of Terra Classic’s proposed Divergence Protocol to re-establish USTC’s value parity with the U.S. dollar? Do you believe this innovative approach will solve the challenges faced by algorithmic stablecoins? Share your thoughts in the comments section below.



from Bitcoin News https://ift.tt/kL3WD7n

Comments

Post a Comment

Popular posts from this blog

13 Years Ago Today, Satoshi Nakamoto Published the First Forum Post Introducing Bitcoin

Image
13 years ago today, the creator of the Bitcoin network, Satoshi Nakamoto published the inventor’s first forum post on the P2P Foundation website. The forum post called “Bitcoin open source implementation of P2P currency” introduced the e-cash system to the members of the advocacy and research forum focused on peer-to-peer dynamics in society. The First of 3 February 2009 Forum Posts Introducing Bitcoin There was three occasions in February 2009 when Satoshi Nakamoto introduced the inventor’s Bitcoin white paper and open source codebase to the P2P Foundation forum members. The occasion on February 11, 2009, was the first time the creator of Bitcoin publicly announced the project using the P2P Foundation forum. Prior to these instances during the month of February, Nakamoto leveraged the email system tethered to the cryptography mailing list hosted on metzdowd.com . The introductory forum post is quite fascinating, and the inventor also leaves a link to the software’s first version
Read more

ATPBot Launches the Easiest Automated Crypto Trading Bot for Investors

Image
PRESS RELEASE. ATPBot, the renowned leader in quantitative trading strategy development, proudly introduces its revolutionary auto trading bot to the cryptocurrency market. This cutting-edge bot boasts a user-friendly interface and a proven set of features, designed to cater to both novice and seasoned traders alike. ATPBot leverages the power of artificial intelligence to create and implement winning quantitative trading strategies. Supported by rigorously tested and proven methods, the bot offers meticulous backtest data, instilling investors with confidence in their trading endeavors. The auto trading bot simplifies the complex trading landscape into just three steps: Connect, Select, Run! By connecting to a crypto exchange API, users can effortlessly choose a strategy and set the investment amount. With a single click of the “Run” button, the AI bot takes over, tirelessly working 24/7. ATPBot’s brilliance lies in its constant strategy adjustments, fueled by extensive histori
Read more

Jupiter’s JUP Token Makes a Grand Entry With $700M Airdrop on Solana Blockchain

Image
Jupiter successfully launched its JUP token. The airdrop, one of the largest in crypto history, distributed an astounding $700 million worth of JUP tokens to almost a million wallet holders. Jupiter’s JUP Token Airdrop Distributes to Nearly a Million Users The cryptocurrency world witnessed one of the largest token airdrops in its history on Jan. 31, as Jupiter, a Solana-based decentralized trading aggregator, launched its native token, JUP. The event distributed approximately $700 million worth of JUP tokens to nearly a million wallets. Jupiter’s founder, known pseudonymously as weremeow on X, announced the launch details in a forum post, revealing that the initial circulating supply of JUP would be 1.35 billion tokens, a reduction from the previously projected 1.7 billion. This adjustment brought the total supply to 10 billion JUP tokens, split evenly between team and community wallets. The airdrop constituted 10% of the total supply, amounting to 1 billion JUP. The distributi
Read more