Type of Stable Coin: Algorithmic

Who’s behind the project: Terraform Labs is behind the Terra blockchain, UST stable coin, and the LUNA token. Also the creators of Mirror Protocol and Anchor

Reserve / Peg Mechanism:

UST uses a seigniorage mechanism to maintain it’s peg, relying on arbitrage participants to keep the peg balanced, this is accomplished by using a two token system, LUNA and UST. Luna is the native token for the Terra Blockchain and absorbs the volatility of the expansion and contraction of the UST supply. UST can be traded in for $1 of LUNA regardless of the price of UST, this mechanism of seigniorage encourages arbitrage traders to enter the market to buy UST and burn it to mint LUNA whenever the price is low and to burn LUNA to mint UST when the price is high.

Dashboard of Assets in Reserve: https://datastudio.google.com/u/0/reporting/b31cc9e5-c54c-4418-a6ce-b332c57e82e9/page/4YBqC?s=or-T7NeGLew

Where can it be used:

Terra Blockchain, Ethereum, Binance Smart Chain, Osmosis, Secret, Injective, Cosmos, Avalanche, Fantom, Polygon, and Moonbeam

Places to borrow or lend:

Anchor Protocol, FTX, Curve, Fuse, and most defi related lending and borrowing platforms; UST is everywhere.

Closing Comments:

UST has become the largest decentralized stable coin in crypto market and has moved onto most chains as a preferred form of stable coins in the Defi universe. UST and LUNA have a lot of support and a lot of doubt about how the protocol will react during time of high volatility. Recently Terra Labs has been buying Bitcoin to use in the reserves to defend the peg of UST.