The Terra Classic community has proposed a new stablecoin known as $USTD. This decentralized, fully automated stablecoin aims to enhance previous models by offering a more sustainable and advantageous approach.
Key Features of $USTD
The proposal for $USTD is currently open for discussion on Commonwealth and LuncGoblins Discourse before a formal vote. Key features of $USTD include no need for locking funds to earn yield and backing by USDC/USDT reserves.
$USTD Benefits for Terra Classic
Key advantages of $USTD include dynamic and real yields generated from LP positions that surpass the previous 20% yield model. This system also enables the protocol to fund arbitrage, supporting ecosystem enhancements through the buyback and burning of $LUNC and $USTC.
Importance of $USTD for the Community
$USTD could represent a significant step toward restoring Terra Classic's position in the DeFi space, providing much greater security and the potential to alleviate legacy debts while uniting the community and creating new opportunities for involvement.
Thus, the proposed $USTD could not only improve existing models but also revitalize Terra Classic, providing a more sustainable foundation for its future development.
