Terra’s UST Becomes Default Stablecoin On Leading Avalanche-based DEX
Pangolin has made Terra’s UST its default stablecoin
Pangolin, a decentralized exchange powered by the Avalanche blockchain, has made TerraUSD (UST) its default stablecoin.
When you sign in, you are now used by default to $UST.
This is part of our commitment to support decentralized stable algo coins that continue to push the boundaries of innovation in our space. pic.twitter.com/ZMxUR2UpH6
— Pangolin 🔺 (@pangolindex) February 4, 2022
The move underscores the project’s commitment to supporting decentralized algorithmic stablecoins, according to a recent Twitter announcement Friday.
In late January, Pangolin launched the $180 million “Avalanche Rush” incentive program, securing $2 million in AVAX rewards.
UST, which launched in September 2020, has a market cap of $11.2 billion. It became the largest decentralized stablecoin after the flip of DAI.
At the time of writing, UST’s total valuation represents 50% of Luna’s market cap. The price and stability of the stablecoin depends on the performance of the native Terra (LUNA) token.
MakerDAO founder Rune Christensen recently described UST as a: “solid Ponzi,” predict that the Terra ecosystem will crash and burn as the broader cryptocurrency market turns south.
Unlike DAI, UST functions as a purely algorithmic stablecoin, meaning that the dollar peg is maintained using arbitrage games.
In late January, Anchor, the top savings protocol on Terra, began to lose its reserves due to declining loan demand. This, along with the Wonderland disaster, put selling pressure on the LUNA token, which has lost nearly 50% of its value this year.
Still, UST, which has now become the most widely used algorithmic stablecoin, has managed to maintain its peg thus far.