- If UST goes above one dollar, more UST is created by burning a dollar’s worth of luna for each new UST. If UST goes below one dollar, UST is burned and luna is created.
- The main engine of demand for UST is to lend it to Terra’s Anchor Protocol, a separate system, for cryptocurrency traders to use.
- That’s not for lack of effort from the cryptocurrency world, whose endgame appears to be to make cryptocurrency systemic and leave the government as the bag-holder of last resort when the tottering heaps of leverage fall down.
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