Binance and Terra Classic Team Collaborate: Accelerating USTC Re-Peg for LUNC's $1 Goal

Bombolo | News and Media

The USTC Quant Team's recent communication with Binance has injected renewed hope into the Terra Classic community. With a focus on re-pegging the algorithmic stablecoin TerraClassicUSD (USTC), previously known as TerraUSD (UST), the team's efforts could potentially revitalize the collapsed ecosystem. In this article, we'll explore the implications of this development and delve into the progress made by the Quant Team in pursuit of achieving parity for USTC with $1.

Also Read: Token Recovery and the Journey to $1: Terra Luna Classic L1TF's Ambitious Plan Unveiled

Building Bridges with Binance

Redline Drifter, a prominent community member, recently shared exciting news regarding the USTC Quant Team. According to his disclosure, the team has established a direct line of communication with Binance, the world's largest cryptocurrency exchange. Drifter's snapshot showcased the progress made with other leading centralized exchanges (CEXs) and decentralized exchanges (DEXs) in implementing the USTC re-peg proposal. This development presents a significant opportunity to address Binance's concerns regarding the proposed divergence tax protocol, while the community pushes for USTC to regain stability at $1.

USTC Re-Peg Using the Divergence Protocol

To provide context, Drifter recommends the adoption of the divergence protocol as a crucial step toward achieving a sustainable USTC re-peg. This protocol involves implementing divergence fees on USTC trades that deviate from the $1 peg. The mechanism, as explained by The Crypto Basic, charges an algorithmic or dynamic fee equivalent to the difference between the peg and market price.

Drifter proposes that the collected fees should be utilized to repurchase LUNC tokens, which would then be burned to reduce the asset's supply. For this approach to be effective, the protocol must be implemented across all USTC trading markets, including both on-chain and off-chain CEXs and DEXs.

Also Read: Burning Bright: Classy's Sphere Ignites LUNC's Path to $1 with Massive Token Burns

Progress with Exchanges and USTC Re-Peg

In the recent update by Drifter, significant progress has been made in terms of integrating the USTC re-peg mechanisms across various CEXs and DEXs. Notable exchanges such as Binance, Kucoin, Huobi, MEXC Global, and Terraswap have shown interest in and acknowledged the re-peg initiatives.

Drifter also reveals that KuCoin's technical department is currently reviewing the USTC re-peg proposal and is expected to provide further responses. Additionally, the Quant Team has engaged in initial discussions with Binance, KuCoin, and Terraswap DEX.

While exchanges like Kraken, Uniswap, OKX, and Superex have yet to fully acknowledge the USTC re-peg proposal, none of them have rejected it either. This indicates the possibility of all major trading platforms supporting the recently passed USTC re-peg proposal.

Also Read: The Rising Count of Burned Terra Classic (LUNC) Tokens Nears the 70 Billion Milestone

LUNC: A Road to Recovery?

The price of LUNC, which experienced a significant decline following the collapse of the Terra ecosystem in May, is still struggling to recover. However, strategic developments such as the USTC re-peg to $1, combined with the relaunch of the ecosystem's DeFi platform, Terraport, could potentially set the stage for a rebound in LUNC's price.

Furthermore, initiatives like token burns and staking could play a vital role in the project's revitalization efforts. For example, Classy, a validator, has decided to burn 100% of their commission until the end of the year. Binance has also been contributing to the Terra Classic community by executing monthly LUNC burns, totaling 2.6 billion LUNC in their latest burn.

Currently, LUNC is trading at $0.000084, showing some positive momentum in the past 24 hours and seven days with a surge of 1.17% and 1.27%, respectively. However, over the past 30 days, the asset has experienced a decline of over 12%.

The USTC Quant Team's communication with Binance marks a significant milestone in the pursuit of re-pegging USTC and potentially revitalizing the Terra Classic ecosystem. By employing the divergence protocol and garnering support from various exchanges, the team aims to restore stability to USTC at $1. The success of these efforts could potentially contribute to the resurgence of LUNC's price. As the community eagerly anticipates further developments, the future of USTC and its associated projects remains an area of great interest and potential growth.

Also Read: Terra Classic's Latest Update: Is LUNC on Track to Reach $1 in 2023?

FAQs

1. What is the USTC Quant Team's main objective?

The USTC Quant Team aims to re-peg the algorithmic stablecoin USTC and establish stability at $1.

2. What is the divergence protocol proposed by Redline Drifter?

The divergence protocol involves implementing fees on USTC trades that deviate from the $1 peg, with the collected fees utilized to repurchase and burn LUNC tokens.

3. Which exchanges have shown interest in the USTC re-peg proposal?

Exchanges such as Binance, Kucoin, Huobi, MEXC Global, and Terraswap have acknowledged and found the USTC re-peg initiatives interesting.

4. How has the LUNC price performed recently?

Following the collapse of the Terra ecosystem, the LUNC price experienced a significant decline. While showing some positive momentum in the past 24 hours and seven days, the asset has declined by over 12% in the past 30 days.

5. What initiatives could contribute to the revitalization of the Terra Classic ecosystem?

Besides the USTC re-peg, initiatives such as token burns and staking are expected to play a role in the revitalization of the Terra Classic ecosystem.