A top point of discussion in the Terra ecosystem is whether UST will keep its peg. UST is the largest algorithmic stablecoin, with a market capitalization of $15.7 billion. As an algorithmic stablecoin, UST is pegged to the US dollar but isn’t backed 1:1 by assets. It is considered controversial because of the “ponzinomics” it benefits from, but this is also what helps stabilize its price. Because it’s unbacked, there is a small chance it “de-pegs” from the value of a dollar. This is only lik...

A top point of discussion in the Terra ecosystem is whether UST will keep its peg. UST is the largest algorithmic stablecoin, with a market capitalization of $15.7 billion. As an algorithmic stablecoin, UST is pegged to the US dollar but isn’t backed 1:1 by assets. It is considered controversial because of the “ponzinomics” it benefits from, but this is also what helps stabilize its price. Because it’s unbacked, there is a small chance it “de-pegs” from the value of a dollar. This is only lik...