Terra USTC surges 66% following approval to re-peg to $1
Terra Classic Stablecoin Terra UST (USTC) has surged over 66% following a governance approval to re-peg the stablecoin. Similarly, Terra Classic (LUNC) is also up 17.3% on the news, according to CryptoSlate data.
Current USTC price is about 4 cents.
The community proposal seeks to restore USTC to peg through a combination of strategies which includes:
the one that caught my eye...
Paying out interest in US dollars to incentivize holders to keep USTC when it is below peg and charge interest when the price is above peg.
When will tokenomics "experts" figure out that incentives do nothing, on their own, to stop malicious crashes - when the incentive to hurt is stronger than to earn.
Also, to "charge interest" sounds like pick pocketing value.
We shall see. Those users who got caught out in various swap pools as both coins mooned at them, and who haven't dumped them, will be praying this re-peg comes through, as would even end up in profit!
wake up!
I'm not sure how effective their strategy is, they need to rebuild trust with the community, but bad actors are bad actors.
mmm... trust is not an algorithm. Whoever is designing it needs to get the maths right, as there is no money to fully collateralise it - and now with many other pegged coins too.
Like I said, the incentive to destroy a competitor - or just for lulz - may be stronger than any incentives design for "good rational actors" - I think that's just obvious, so coins need to also stress-test for malice.
Yep, stress-testing must include pure malice without immediate profits.