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An Algorithmic Stablecoin Rebranded from TerraUSD (UST).
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Rebranded from TerraUSD (UST), TerraClassicUSD (USTC) is a decentralized algorithmic stablecoin on the Terra Classic blockchain. After the depeg of USTC in May 2022, the Terra community decided to create a new blockchain without the algorithmic stablecoins called Terra 2.0. The original blockchain is renamed as Terra Classic.
USTC is designed to be pegged to 1 USD, and in order to mint 1 USTC, 1 USD worth of the reserve asset, LUNC, must be burned. USTC's stability mechanism depends on arbitrage activities by users. For instance, when the price of USTC falls to $0.95 in secondary markets, users can purchase 100 USTC with $95 on exchanges, and redeem these tokens on the Terra platform for LUNC tokens worth $100. If the price of 1 USTC goes above $1, users can purchase USTC on the Terra platform and sell on exchanges for a profit.
As at May 31st, 2022, the total and circulating token supply of USTC is 10,269,448,617.