Terra is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. Luna is the reserve currency of the Terra platform. It has three core functions: i) mine Terra transactions through staking, ii) ensure the price stability of Terra stablecoins and iii) provide incentives for the platform’s blockchain validators.
For the second time in 48 hours, the stablecoin was volatile and lost its stable price of USD $1. Terra announced early measures to protect the UST peg.
The stable algorithmic currency currency is a medium of exchange that defines value. native to the ecosystem Earth seems to be experiencing difficulties in maintaining its price parity with the U.S. dollar. The media CoinDesk first reviewed.
Dos segunda vez en las últimas 24 horas, USD Land (UST) has been volatile, falling below its stable USD $1 level. CoinMarketCap The asset has fluctuated 1.2% in the last 24 hours, dropping as low as $0.983 this Monday morning. As of press time, its price has yet to touch the dollar and remains around $0.99.
UST had already registered a drop during Saturday, when the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. The stable currency recovered slightly on Sunday, but seems to face difficulties in maintaining the $1 price.
The phenomenon repeats itself this Monday shortly after the Luna Foundation Guard (LFG), a non-profit organization that supports the Earth , to announce his intention de lend USD $750 million in Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. of its reserves with the aim of ” ayudar a proteger “UST’s parity with the dollar.
UST is based on its token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. brother LUNA to maintain its 1:1 link to the US dollar through a set of minting and chain-burning mechanisms. While the decoupling is not the first (nor is it the largest) in the history of Earth fluctuations of this kind are not ideal for a stablecoin .
This is the first time that UST has shown signs of volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. after the creator of the Earth Do Kwon, announced a strategy to back up the stablecoin with reserves in Bitcoin and other cryptocurrencies. LFG has been aggressively buying up bitcoins this year, reaching a treasury of USD $3.5 billion in reserves of the flagship currency.
It is unclear what factors could be causing UST’s recent instability. Over the weekend, the asset recorded several substantial liquidations on some decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance platforms (DeFi), causing some users to speculate that it was a coordinated attack to take down the stablecoin.
- Terra to lend USD $750 million in Bitcoin from its reserves to protect UST parity
- Terra buys more Bitcoin and reaches short-term goal: already holds $3.5 billion in BTC
- Terra bought more than 4,000 bitcoins for USD $170 million over the weekend and plans to diversify Solana
Article by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva