Please note, this is a STATIC archive of website www.coindesk.com from 28 Feb 2023, cach3.com does not collect or store any user information, there is no "phishing" involved.
$0.02137342
24H %
-4.29%
24H Low
$0.02102485
24H High
$0.02315948
DownloadIcon
TO

Linear
Log

About TerraUSD

Sector

Currency


Industry Group

Stablecoin


Industry

Stablecoin



The TerraUSD price is $0.02, a change of -4.29% over the past 24 hours as of 3:11 p.m. The recent price action in TerraUSD left the tokens market capitalization at $209,610,489.69. So far this year, TerraUSD has a change of -97.88%. TerraUSD is classified as a Currency under CoinDesks Digital Asset Classification Standard (DACS).


TerraUSD (UST) is a stablecoin hosted by the Terra network and created by South Korea’s Terraform Labs. TerraUSD is one of a number of Terra stablecoins pegged to key currencies. (Another example is TerraKRW, pegged to the South Korean won.)

The coins are all pegged to their respective currencies algorithmically, instead of using reserves of fiat currency. The algorithm employs Terra’s governance token luna (LUNA.)

UST price

The stability of the TerraUSD price is maintained indirectly via the “base” TerraSDR coin, which is pegged to the value of the International Monetary Fund’s (IMF) special drawing rights (SDR). The SDR is simply a unit of account defined in terms of other currencies including the U.S. dollar and the euro. SDRs were created by the IMF in 1969 to assist states struggling with financial liquidity. The SDR is useful for Terra because it shows lower volatility than any given currency trading against another.

The Terra system commits to be the counterparty to anyone wanting to swap TerraSDR with luna at the target exchange rate. For instance, if a TerraSDR was trading cheaper than one actual SDR, then a user would be able to profit by swapping one TerraSDR with the system in return for one SDR’s worth of luna. This swap would push down the supply of TerraSDR and push its price back up towards the target.

This means the system mints new LUNA in order to buy back TerraSDR when the price of TerraSDR falls below a certain level. It burns the TerraSDR that it acquires in doing so. Conversely, it mints new TerraSDR to sell when the price rises too high, then burns the LUNA it gets paid.

This, in turn, pegs the values of all of the other Terra stablecoins, because users are always permitted to exchange TerraUSD and the rest for TerraSDR at the effective market exchange rate between the underlying currencies and SDR.

How does UST work?

The Terra network is a proof-of-stake (POS) blockchain, meaning a randomly selected validator proposes a new transaction block after “staking” some of their luna coins. If a certain number of other validators attest to the block’s validity, the proposer is rewarded. Otherwise, that person may lose his or her stake.

The network rewards validators through a small fee from every Terra transaction. The transaction fees and the validator rewards are denominated in TerraSDR.

The Terra blockchain hosts a decentralized application (dapp) called Anchor, which takes deposits in Terra stablecoins and aims to pay a stable interest rate in a marketplace characterized by volatility. Anchor also offers loans with staked crypto assets from major proof-of-stake blockchains as collateral and passes on a variable fraction of the yield those stakes generate to its depositors.

Other dapps on the Terra network include Ozone, an insurance product, and Mirror, through which users can take on exposure to U.S. equities without actually buying them.

Key events and management

South Korean national and Stanford computer science graduate Do Kwan founded Terraform Labs in 2018.

In July 2021, the company raised $150 million from investors including Arrington XRP Capital, Pantera Capital, Galaxy Digital and BlockTower Capital. The funding went to Terra’s Ecosystem Fund, which sponsors projects on the Terra blockchain. Prior to that, the company had raised $25 million in January of the same year from a similar pool of investors.

Do Kwan was served with a subpoena by the U.S. Securities and Exchange Commission (SEC) in September 2021, asking him to testify to the regulator regarding Terra’s Mirror Protocol. The following month, he and his company sued the SEC alleging the subpoena had been improperly served and that the SEC had failed to keep its investigation confidential because Kwan had been served in person at a conference.

Also in September 2021, the Terra blockchain completed its Columbus-5 upgrade, which allowed users to transfer Terra assets onto other blockchains including Ethereum and Solana.

In November 2021, a popular vote of the Terra community decided in favor of burning almost 89 million LUNA tokens and minting 4 million to 5 million TerraUSD coins. This was designed to stimulate the growth of the Ozone insurance protocol on the Terra network and led to a fresh surge in the value and market capitalization of LUNA.


Previously Aired
CDTV logo

Quantum Economics Bitcoin Analyst Jason Deane joins "All About Bitcoin" to discuss his markets outlook as the lending arm of crypto investment bank Genesis Global Trading is temporarily suspending redemptions and new loan originations in the wake of FTX’s collapse. Plus, a conversation with Castle Island Ventures Partner Nic Carter about why proof of reserves could help to win back public trust in crypto.

$209.61M

$16.45M


TerraUSD Price

24H Open
$0.02225930
24H Change
$-0.00095498
52 Week Low
$0.00590900
52 Week High
$1.06
All Time High
$1.09
Returns (YTD)
-97.88%

TerraUSD Market Stats

Total Supply
9.81B
Max Supply
N/A
24H Value Transacted
N/A
30D Volatility
1.42
24H Transaction Count
N/A
24H Average Transaction Fee
N/A

About TerraUSD

Sector

Currency


Industry Group

Stablecoin


Industry

Stablecoin



The TerraUSD price is $0.02, a change of -4.29% over the past 24 hours as of 3:11 p.m. The recent price action in TerraUSD left the tokens market capitalization at $209,610,489.69. So far this year, TerraUSD has a change of -97.88%. TerraUSD is classified as a Currency under CoinDesks Digital Asset Classification Standard (DACS).


TerraUSD (UST) is a stablecoin hosted by the Terra network and created by South Korea’s Terraform Labs. TerraUSD is one of a number of Terra stablecoins pegged to key currencies. (Another example is TerraKRW, pegged to the South Korean won.)

The coins are all pegged to their respective currencies algorithmically, instead of using reserves of fiat currency. The algorithm employs Terra’s governance token luna (LUNA.)

UST price

The stability of the TerraUSD price is maintained indirectly via the “base” TerraSDR coin, which is pegged to the value of the International Monetary Fund’s (IMF) special drawing rights (SDR). The SDR is simply a unit of account defined in terms of other currencies including the U.S. dollar and the euro. SDRs were created by the IMF in 1969 to assist states struggling with financial liquidity. The SDR is useful for Terra because it shows lower volatility than any given currency trading against another.

The Terra system commits to be the counterparty to anyone wanting to swap TerraSDR with luna at the target exchange rate. For instance, if a TerraSDR was trading cheaper than one actual SDR, then a user would be able to profit by swapping one TerraSDR with the system in return for one SDR’s worth of luna. This swap would push down the supply of TerraSDR and push its price back up towards the target.

This means the system mints new LUNA in order to buy back TerraSDR when the price of TerraSDR falls below a certain level. It burns the TerraSDR that it acquires in doing so. Conversely, it mints new TerraSDR to sell when the price rises too high, then burns the LUNA it gets paid.

This, in turn, pegs the values of all of the other Terra stablecoins, because users are always permitted to exchange TerraUSD and the rest for TerraSDR at the effective market exchange rate between the underlying currencies and SDR.

How does UST work?

The Terra network is a proof-of-stake (POS) blockchain, meaning a randomly selected validator proposes a new transaction block after “staking” some of their luna coins. If a certain number of other validators attest to the block’s validity, the proposer is rewarded. Otherwise, that person may lose his or her stake.

The network rewards validators through a small fee from every Terra transaction. The transaction fees and the validator rewards are denominated in TerraSDR.

The Terra blockchain hosts a decentralized application (dapp) called Anchor, which takes deposits in Terra stablecoins and aims to pay a stable interest rate in a marketplace characterized by volatility. Anchor also offers loans with staked crypto assets from major proof-of-stake blockchains as collateral and passes on a variable fraction of the yield those stakes generate to its depositors.

Other dapps on the Terra network include Ozone, an insurance product, and Mirror, through which users can take on exposure to U.S. equities without actually buying them.

Key events and management

South Korean national and Stanford computer science graduate Do Kwan founded Terraform Labs in 2018.

In July 2021, the company raised $150 million from investors including Arrington XRP Capital, Pantera Capital, Galaxy Digital and BlockTower Capital. The funding went to Terra’s Ecosystem Fund, which sponsors projects on the Terra blockchain. Prior to that, the company had raised $25 million in January of the same year from a similar pool of investors.

Do Kwan was served with a subpoena by the U.S. Securities and Exchange Commission (SEC) in September 2021, asking him to testify to the regulator regarding Terra’s Mirror Protocol. The following month, he and his company sued the SEC alleging the subpoena had been improperly served and that the SEC had failed to keep its investigation confidential because Kwan had been served in person at a conference.

Also in September 2021, the Terra blockchain completed its Columbus-5 upgrade, which allowed users to transfer Terra assets onto other blockchains including Ethereum and Solana.

In November 2021, a popular vote of the Terra community decided in favor of burning almost 89 million LUNA tokens and minting 4 million to 5 million TerraUSD coins. This was designed to stimulate the growth of the Ozone insurance protocol on the Terra network and led to a fresh surge in the value and market capitalization of LUNA.


Market Analysis
Social Analysis

Trending Assets

Bitcoin Calculator

Last Updated on 11/17/22 3:11 PM

CoinDesk’s Bitcoin and Cryptocurrency Calculator determines the exchange rates between major fiat currencies and cryptocurrencies – including BTC, BCH, ETH and XRP to USD, EUR, GBP, IDR and NGN – with up to six decimal places of accuracy. Conversion rates are based on CoinDesk’s Bitcoin Price Index and the price indices of other digital assets. World currency prices are based on rates obtained via Open Exchange Rates.


Latest About TerraUSD

CoinDesk - Unknown
Decoupling of Lido’s Staked ETH Differs From Stablecoin Collapse, CoinShares Says

Staked ether (stETH) will trade at a discount until withdrawals are enabled, the report said.

CoinDesk - Unknown
CoinDesk - Unknown
First Mover Asia: Celsius Risks Triggered Crypto Crash, Says Huobi Group CFO; Bitcoin Wobbles but Doesn't Break Post-Rate Hike

Lily Zhang told CoinDesk the lending platform's problems were ill-timed following the collapse of the terraUSD stablecoin, and crypto prices could decline further; major altcoins regain ground.

CoinDesk - Unknown
CoinDesk - Unknown
Goldman Sachs Says DeFi’s Interconnections Can Increase Systemic Risk

Contagion risk related to UST’s depegging hit staked ether (stETH) because of Lido’s exposure to the Terra ecosystem, the bank said.

CoinDesk - Unknown

Disclaimer
Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results. CoinDesk is an independently managed media company, wholly owned by the Digital Currency Group, which invests in cryptocurrencies and blockchain startups. DCG has no operational input into the selection or duration of CoinDesk content in all its forms.