In the most recent development, hope seems renewed for the collapsed ecosystem algorithmic stablecoin, TerraClassicUSD (USTC), formerly Terra USD (UST). The latest expansion got hinted at by a prominent community member, Redline Drifter.
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By displaying a snapshot in an already deleted tweet, Redline disclosed the progress made with top Decentralized Exchanges (DEXs) and Centralized Exchanges (CEXs), especially concerning the implementation of the recently suggested USTC re-peg proposal. Redline wrote, “A direct line of communication has been opened between Binance and the USTC Quant Team.”
“Of What Significance Is The Established Communication Between Binance And The USTC Quant Team?” – Redline’s Insight
Read Also: Binance Initiates 11th Terra Classic Token Burn, Removes 2.65 Billion LUNC from Circulation
The strategic line of communication reportedly got developed to tackle Binance’s issues regarding a proposed divergence tax protocol, especially as the community seems desperate to achieve parity with $1.
“We’re investigating the infrastructure issue in detail and will be looking to see if we can provide the solution or possibly apply the divergence algo differently to avoid the issue,” Drifter remarked.
Divergence Protocol Remains Key In Achieving USTC Re-Peg
Speaking about the need to adopt the divergence protocol for USTC re-peg, Redline stated. “The divergence protocol works by charging an algorithmic/dynamic fee equal to the difference in price between the peg and market price.”
Furthermore, Redline presented a proposal, using collected fees to repurchase LUNC tokens and burning them to cut down the token’s massive supply.
Drifter emphasized the need to implement his proposed dynamic protocol across every crypto market actively trading USTC, including on and off-chain CEXs and DEXs crypto outlets.
Progress On USTC Re-Peg Journey: Any Rejection So Far?
Redline confirmed the significant progress recorded in the push for USTC re-peg, especially involving incorporation on top DEXs and CEXs platforms. Top exchange platforms like Kucoin, Huobi, Binance, MEXC Global, and Terraswap have acknowledged their interest in the re-peg initiatives.
Per Drifter, Kucoin technical team is on the verge of accepting the re-peg proposal, noting that the Quant team had finalized discussions with Binance, Kucoin, and Terraswap DEX.
While platforms like Uniswap, OKX, Kraken, and Superex exchanges are still mute on what they think of the re-peg initiative, there has been no record of rejection so far, which is commendable and impressive.
Read Also: LUNC Path to $1? Binance Announces Support for Terra Classic Upgrade to Increase Burn Tax
Feasibility Of A $1 Price Level For LUNC
After its collapse, the Terra Classic-based crypto project has been working on initiatives to revive the Luna Classic. The re-peg idea is one such project that could go a long way in re-establishing LUNA’s market standings if it could gain parity with $1.
In addition to earning a $1 parity using LUNC, the relaunch of Terra Classic’s Terraport DeFi platform could result in an unprecedented surge in LUNC’s market worth.
On the other hand, LUNC token burns and staking are both vital in the revival project. Notably, Binance has been crucial in LUNC’s monthly burn scheme, which culminated in the burning of over 2.6 billion total LUNC coins. In addition, Classy reportedly opt for burning 100% on his validator’s commission until year-end.
LUNC Price Movements: How Impressive?
Per CoinGecko, LUNC’s price today is $0.00009060, reflecting a surge of 7.5%, and currently on 4,378 watchlists. The past week saw LUNC register a price high and a market low of $0.00009272 and $0.00007912, respectively.
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