Primer on Stablecoins & Lessons from UST collapse: Stablecoins need utilityOn May 9, the Terra USD (UST) stablecoin in the Terra ecosystem showed the first signs of “depegging”. The value of UST is algorithmically secured to the price of the US Dollar — that is, 1 UST should always be equal to 1 USD. That started changing, fast. In around 12 hours, the value of UST plunged from 0.99 USD to 0.76 USD. On the back of assurances from Terra founder Do Kwon, the price rose to 0.93 USD before precip...

Primer on Stablecoins & Lessons from UST collapse: Stablecoins need utilityOn May 9, the Terra USD (UST) stablecoin in the Terra ecosystem showed the first signs of “depegging”. The value of UST is algorithmically secured to the price of the US Dollar — that is, 1 UST should always be equal to 1 USD. That started changing, fast. In around 12 hours, the value of UST plunged from 0.99 USD to 0.76 USD. On the back of assurances from Terra founder Do Kwon, the price rose to 0.93 USD before precip...