TerraClassicUSD USTC/USD price history up to September 25, 2024

The price of Terra's algorithmic stablecoin UST collapsed severely in May 2022, declining by over 95 percent in the span of a few days. This came as a surprise to many, given the promise the stablecoin held. Simply put, Terra claimed to have created a smart contract system that can keep the price of its (stable)coin more stable than that of other digital currencies. It would do so by using an algorithm that automatically sacrifices ("burns") LUNA tokens - the cryptocurrency of the same Terra blockchain - in order to create new UST coins. This is a big deal for Decentralized Finance or DeFi, as some of the most valued segments in DeFi rely on price stability in order to function. The concept of an algorithm that automatically adds or removes supply, irrespective of sentiment, is different from other popular stablecoins such as Tether (USDT), which are either backed by the fiat currencies like the U.S. dolla or external crypto assets.

2022年5月，Terra平台推出的算法稳定币UST价格暴跌，短短几天内跌幅超过95%。这一现象出乎许多人的意料，因为该稳定币曾承诺提供更高的稳定性。简言之，Terra宣称其构建了一套智能合约系统，能够使其（稳定）币的价格相较于其他数字货币更加稳定。该系统通过自动燃烧（“销毁”）与Terra区块链同源的加密货币LUNA，以创建新的UST币来实现此目的。这对去中心化金融（DeFi）领域而言意义重大，因为DeFi中一些最有价值的领域依赖于价格稳定性以实现其功能。这种算法自动调节供需，不受市场情绪影响的理念，与Tether（USDT）等流行的稳定币不同，后者要么以法定货币如美元或外部加密资产作为支撑。