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Pangolin has made Terra’s UST its default stablecoin
Pangolin, a decentralized exchange powered by the Avalanche blockchain, has made TerraUSD (UST) its default stablecoin.
If you log in you’ll now be defaulted to use $UST.
This is part of our commitment to support decentralized algo stable coins that continue to push the boundaries of innovation in our space. pic.twitter.com/ZMxUR2UpH6
— Pangolin 🔺 (@pangolindex) February 4, 2022
The move underscores the project’s commitment to supporting decentralized algorithmic stablecoins, according to a recent Twitter announcement made on Friday.
In late January, Pangolin launched the $180 million “Avalanche Rush” incentive program, securing $2 million in AVAX rewards.
UST, which was launched back in September 2020, has a market cap of $11.2 billion. It became the biggest decentralized stablecoin after flipping DAI.
At press time, UST’s total valuation constitutes 50% of Luna’s market cap. The price and stability of the stablecoin depend on the performance of the native Terra (LUNA) token.
MakerDAO founder Rune Christensen recently described UST as a “solid Ponzi,” predicting that the Terra ecosystem will crash and burn if the broader cryptocurrency market turns south.
Unlike DAI, UST functions as a purely algorithmic stablecoin, which means that its dollar peg is maintained with the help of arbitrage plays.
In late January, Anchor, the top savings protocol on Terra, started bleeding its reserves due to waning borrowing demand. This, along with the Wonderland disaster, exerted selling pressure on the LUNA token, which has lost nearly 50% of its value this year.
Yet, UST, which has now become the most widely used algorithmic stablecoin, has so far managed to maintain its peg.