Terra, Luna and UST: How we got here

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Terra, Luna and UST: How we got here
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ICYMI: Terra, Luna and UST: How we got here

The historic de-pegging of the TerraUSD stablecoin this week sent shockwaves through the financial world.Crypto history was made this week as one of the most popular stablecoins, TerraUSD lost its peg to the US dollar and then, over the course of a few days, collapsed to below $0.30.

As of writing, UST is now trading at around $0.68 on Binance against Tether’s USDT, the most voluminous trading pair for UST. And Luna, Terra’s native asset that is supposed to help UST maintain its peg, is down to around $1.25, from $84 a week ago. Traditional stablecoins like Tether’s USDT and Circle’s USDC are said to be backed by cash and other assets. There are also crypto-collateralized stablecoins, most prominently Maker's Dai.

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