USTC is the renamed legacy token formerly known as TerraUSD or UST. It was designed as an algorithmic USD stablecoin, lost its peg in May 2022, and no verified issuer redemption claim at par exists in the post-collapse Terra Classic system.
| Symbol | USTC |
| Peg | USD |
| Backing | Algorithmic |
| Status | Active |
| Launched | 2020 |
| Networks | L1 non EVM Terra Classic |
| Specifications | Backing Algorithmic mint-and-burn relationship with LUNA/LUNC rather than fiat reserves; Luna Foundation Guard crypto reserves used during May 2022 peg-defense operations Redemption Before the collapse, the Terra protocol relied on market-module arbitrage between Terra stablecoins and LUNA. After the collapse and community governance changes, no issuer redemption claim at par was verified, and community votes later halted USTC minting and reminting. unverified |
| Use cases | DeFi collateral, Settlement |
| Depeg history | Date 2022-05-09 · Cause Loss of confidence and a run on the algorithmic UST-LUNA stabilization mechanism, followed by failed emergency reserve-defense operations unverified |
| Chain | Address |
|---|---|
| Osmosis | ibc/BE1BB42D4BE3C30D50B68D7C41DB4DFCE9678E8EF8C539F6E6A9345048894FCC |
| Terra | uusd |
## Overview USTC is the renamed legacy token formerly known as TerraUSD or UST. It was designed as an algorithmic USD stablecoin, lost its peg in May 2022, and no verified issuer redemption claim at par exists in the post-collapse Terra Classic system. ## Key Features - Post-mortem example of a failed algorithmic stablecoin - No verified fiat-reserve redemption claim - Original design relied on arbitrage between UST and LUNA - Community governance later voted to halt USTC minting and reminting ## Reserve Backing Algorithmic mint-and-burn relationship with LUNA/LUNC rather than fiat reserves; Luna Foundation Guard crypto reserves used during May 2022 peg-defense operations. ## Supported Networks Available on Terra Classic.