UST stablecoin struggles to maintain $1 parity amid crypto market turbulence

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The algorithmic stablecoin UST, which is part of the Terra crypto ecosystem, is struggling to maintain parity with the dollar following a Saturday market event.

During the market event, the price of UST hit a low of $0.9857 on Binance against USDT. This trading pair is the most voluminous for UST, with $1.36 billion in volume reported in the past 24 hours., meaning that it relies on market incentives to maintain its peg.

In addition to a burn mechanism involving the LUNA token, which is used as part of Terra's governance process, UST is also backed by an ever-increasing reserve of digital assets like bitcoin that can be used to defend the stablecoin's market parity with the dollar.

 

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Great article on $luna $ust

Yeah but did it really struggle?

$UST better come through and stay stable or the regulators are going to have a damn hay day with this.

cockroaches

Can't believe i didn't think of it myself

welp.... that didn't take long.

Lmaaaaaaao Imajin clout farming on Twitter about an arb opportunity on UST. Those of you eating up this shit (lol Tether) really need to use your critical thinking skills and start wondering who is behind all these FUD threads and why they might be feeding you this narrative.

Thats why i prefer tether over other stables

Ponzi scams don’t last.

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Source: Cointelegraph - 🏆 562. / 51 Read more »