Overview

TerraClassicUSD (USTC) was initially launched as an algorithmic stablecoin within the Terra ecosystem, intended to maintain a 1:1 peg with the US dollar by using a market-module mechanism that coordinated supply and demand with LUNA (now LUNC). This design aimed to provide a decentralized, fiat-pegged digital asset for use across the Terra blockchain. However, during the collapse of the Terra ecosystem in May 2022, the automated peg-maintenance logic failed, resulting in the complete de-pegging of USTC. Since then, USTC has transitioned into a freely traded, volatile digital asset, with its value driven purely by market demand and supply rather than any algorithmic mechanism. Despite losing its status as a stablecoin, USTC still plays a significant role in the Terra Classic ecosystem, where it is used in decentralized finance (DeFi) protocols, as a medium for paying gas fees, and as a trading pair on both centralized (CEXs) and decentralized exchanges (DEXs). The ongoing development and economic discussions surrounding USTC are actively held within the Common governance forum, keeping the community engaged in shaping its future utility and models.

Whitepaper & Documents