### What is TerraClassicUSD (USTC)?

TerraClassicUSD (USTC) is a decentralised algorithmic stablecoin that was originally designed to maintain a 1:1 peg with the US dollar. It operates on the Terra Classic blockchain and was previously known as TerraUSD (UST) before the collapse of the Terra ecosystem in May 2022. 

### How does TerraClassicUSD (USTC) work?

USTC uses an algorithmic stability mechanism involving its counterpart, LUNC (Luna Classic), to manage price stability. The protocol implements a "mint and burn" mechanism:  
- When USTC’s price is below $1, users can burn 1 USTC to mint $1 worth of LUNC.  
- When USTC’s price is above $1, users can burn LUNC to mint USTC.  

This algorithm was intended to maintain USTC’s dollar peg. However, since the de-pegging event in May 2022, USTC has ceased functioning as a stablecoin.

### What are the potential use cases for TerraClassicUSD (USTC)?

USTC has various use cases within the Terra Classic ecosystem and decentralised finance (DeFi), including:  
- **Medium of Exchange**: Used for transactions within DeFi protocols.  
- **Collateral**: Serving as collateral for lending and borrowing platforms.  
- **Trading**: Acting as a trading pair on decentralised exchanges.  
- **Yield Farming**: Providing liquidity for farming and staking rewards.  
- **Cross-Chain Transfers**: Facilitating value transfers across blockchain networks.  

Industries like DeFi, cryptocurrency trading, and digital payments have integrated USTC in the past, although its utility has significantly diminished post-collapse.

### What is the history of TerraClassicUSD (USTC)?

USTC was launched as **TerraUSD (UST)** in September 2020 by Terraform Labs, co-founded by **Do Kwon** and **Daniel Shin**. Initially a promising algorithmic stablecoin, it saw widespread adoption in DeFi. Key milestones include:  
- **September 2020**: Launch of TerraUSD (UST).  
- **May 9, 2022**: UST lost its dollar peg, collapsing from $0.9 to $0.154 by May 13.  
- **May 25, 2022**: Community vote to create a new Terra blockchain without UST.  
- **May 27, 2022**: UST rebranded as USTC and moved to the Terra Classic blockchain.  

### Evolution of TerraClassicUSD (USTC)

USTC began as an innovative stablecoin but experienced a catastrophic collapse during its de-pegging event in May 2022, leading to a massive loss of trust and value. While it continues to exist on the Terra Classic blockchain, it no longer functions as a stablecoin, and its market role has significantly diminished. The event serves as a cautionary tale in the challenges of algorithmic stablecoins.

### Notable Partnerships and Updates

- **Partnerships**: Initially partnered with Bittrex Global for its launch.  
- **Updates**: The May 2022 collapse led to its rebranding and the creation of the Terra Classic blockchain.  


UST Classic

Tether

USDC

Tether Gold

PAX Gold

USDD

TrueUSD

EURC

Terra Luna Classic

Reserve Rights

Lista USD

Magic Internet Money

Pax Dollar

Gemini Dollar

Frax

Liquity USD

XSGD

Alchemix USD

UST Classic (USTC)

Similar Coins

USDT

USDC

XAUT

PAXG

USDD

TUSD

EURC

LUNC

RSR

LISUSD

MIM

USDP

GUSD

FRAX

LUSD

XSGD

ALUSD

Resources

UST Classic (USTC) Price Index

UST Classic Price

Trading volume

Market cap

Resources