All about UST (TerraUSD) The Upcoming Listed Crypto on Tokenize

The Terra network’s native tokens, Luna (LUNA) and TerraUSD (UST), are two blockchain-based projects developed by Terra Labs in South Korea. By 22/4/2022, USDTerra would be listed on Tokenize Xchange. In this article, we will discuss how USDTerra is different from other stablecoins and its outstanding features. Let’s find out!

What is UST (TerraUSD)?

TerraUSD (UST) is the Terra blockchain’s decentralized and algorithmic stablecoin.

All of Terra’s fiat-based stablecoins, such as TerraUSD, TerraKRW, TerraEUR, and TerraSDR, are meant to preserve a balanced equilibrium. The system uses specific algorithmic spending and stablecoin usage data obtained straight from the Terra blockchain to preserve balance — and LUNA is the key to this rebalancing operation.

>>>Read more: Why stablecoins are important?

Terra is developed by South Korea-based Terraform Labs, founded in 2018 by Do Kwon and Daniel Shin. Terra launched the first TerraUSD (UST) coin on Bittrex Global in September 2020.

Terra’s development team has more than 70 members. Among them are many mathematicians, scientists, and financial experts from technology companies and large institutions such as Apple, Microsoft, and the Federal Reserve Bank of New York. Some of the main members stand out such as:

• Do Kwon: The co-founder and CEO of Terra. Before Terra, he also founded Anyfi, a media networking company. He used to be a software engineer at Microsoft and Apple.
• Daniel Shin: The co-founder of Terra. Daniel has many years of experience and expertise in the field of e-commerce. He is also the founder and CEO of TicketMonster, Korea’s leading e-commerce platform. He is also currently a board member of Fast Track Asia.
• Evan Kereiakes is in charge of financial research for Terra. Evan worked for 7 years at the Federal Reserve Bank of New York. He is also a Japanese portfolio manager of foreign exchange reserves.

How UST (TerraUSD) works

“Terra is the hot dot among the cool kids in crypto right now,”  says Matt Hougan, chief investment officer at Bitwise Asset Management. “People love the team behind Terra, and they love all the various applications being built on it right now.”

Terra recently overtook Ethereum as the second-largest DeFi protocol, with approximately $18 billion in total value locked, according to data provider DeFi Llama.

As an algorithmic stablecoin of the blockchain network Terra, in order to avoid the effects of cryptocurrency market volatility, Terra maintains the value of UST by ensuring that its supply and demand are always in balance. 

Terra use LUNA  coin as a price stabilization method for the algorithm that generates the UST coin. To generate 1 UST, the user needs to burn an amount of LUNA worth 1 USD and vice versa. Simply put, users will burn LUNA to mint UST and burn UST to mint LUNA.

This mechanism helps to ensure that the value of the UST will always be stable against the US dollar. This is also one of the characteristics that distinguish UST from other stablecoins like USDT or USDC.

Reasons why you should buy UST (TerraUSD)

High stability and scalability

UST is an algorithmic stablecoin, which is stabilized through its LUNA burning mechanism and money market. With this unique mechanism, the value of UST will always be stable around 1 USD regardless of whether the demand for this coin increases or decreases.

This makes it possible for DeFi projects using UST as a means of payment to scale up without fear of UST price volatility affecting their applications, products, and services.

While the market supply of LUNA was around 410 million in June 2021, the Terra platform’s coin burns, which use an equilibrium mechanism, can destroy up to 58 million LUNA at once. Terra is able to regulate its stablecoin monetary policy with solid levers thanks to a total supply of little under one billion LUNA coins, but it is still subject to supply fluctuation.

Simple and easy exchange

In addition to TerraUSD (UST), Terra also issues many other stablecoins including TerraCNY, TerraJPY, TerraGBP, TerraKRW, TerraEUR and TerraSDR for use in many different markets. The Terra ecosystem’s stablecoins all share a similar liquidity pool, allowing users to convert between them fast and easily at a smaller expense.

Provide passive income

The Terra ecosystem also includes a development platform and blockchain-agnostic architecture that enables software engineers to create their own protocols and decentralized applications (dApps) on top of the Terra network. 

Anchor Protocol, which provides incentive staking yield services, and Mirror Protocol, which allows synthetic asset generation and usage, are two of the most popular decentralized finance (DeFi) protocols based on Terra.

With Anchor Protocol, users can avail of loan and savings features at an increased interest rate of 20%/year. Other stablecoins such as DAI, USDC… through Terra’s Orion Money project can also be converted into UST and deposited into Anchor Protocol to receive interest.

How to buy UST (USDTerra)

Traders and investors are able to buy and sell TerraUSD on Tokenize Xchange from Apr22, 2022 with great benefits for users. So how to buy UST on our platform?

Step 1: Select Market on your dashboard. You will see this page.

Step 2: Click on the market you wish to buy your cryptocurrency on the tab you see on the right.

For e.g. If you wish to trade UST-SGD, click on SGD Markets tab, and under the tab, you will see UST/SGD and click Trade.

Step 3: Choose type of Buying

>>>Read more: Beginner guides: Market order, Limit order, and Stop order

3.1. Limit Buy:

A limit order will be filled at or better than a specified price. Any quantity that is not filled rests on the continuous order book until it is filled or canceled.

• Your Balance: SGD balance left in your account.
• Price per UST: Key in the price to buy for 1 UST in SGD.
• Amount UST: Key in the amount of UST to buy.
• Time In Force: Good Till Cancelled (GTC): Your order will stay on the order book until they have been completely filled or until you manually cancel them.

3.2 Market Buy

A market order is an order that will be executed immediately and in full by buying or selling from the bids and asks in the order book.

• Your Balance: SGD balance left in your account.
• Market: Your order will be filled immediately at the best market price at the time of your order.
• Amount: Key in the amount of BTC to buy.
• Sell: Once the Amount is filled correctly, you may click on “Buy BTC” to confirm your Total Bid.

Step 4: Confirm your order.

You will see a confirmation window. Check all details carefully. Please see the trading commission fee here. Click “Confirm” to proceed or “Cancel” to cancel the transaction.

After confirming the order, you will see a green notification at the top of the page indicating that your order has been successfully placed.

Step 5: Your order will be matched automatically. You may view your order by selecting “Orders” and “Finished Orders”.

Under “Finished Orders”, you are able to view your completed orders.

NOTE: How to cancel buy order:

Click on “Pending Orders” to view all of your pending orders. 

Each order will show detailed information such as Date, Market, Side, Order Type, Price, Total Units, Amount and Filled.

For orders that are still pending, you can click on “Cancel” to cancel your order. 

TerraUSD will be available for Tokenize users from Apr22, 2022

TerraUSD (UST) will be available for trading on Tokenize Xchange from 22/04/2022 for all users.

Especially, TerraUSD (UST) will be available exclusively for Premium/Platinum members in our Market and Crypto Earn from 22nd April 2022. The yields for UST in our Crypto Earn feature will be as follows:

– UST with 100 TKX staked: 14%

– UST without 100 TKX staked: 10%

Make sure you have upgraded your membership to Premium/Platinum to enjoy this exclusive offer and many more opportunities in the future.

*Kindly note that the Deposit and Withdrawal wallet functions are to be announced again.