The Terra Classic community is buzzing with renewed hope as efforts to revitalize the collapsed ecosystem algorithmic stablecoin, TerraClassicUSD (USTC), gain momentum. In a recent development, renowned community member Redline Drifter revealed that the Quant Team focused on USTC repegging has established a connection with Binance, the world’s largest crypto exchange.
USTC To $1 With The Help Of Binance
A direct line of communication has been opened between Binance and the USTC Quant Team, marking a significant step forward in resolving Binance’s concerns regarding the proposed divergence tax protocol. The community is pushing to achieve parity for USTC with $1, and this strategic communication channel aims to address any infrastructure issues and explore alternative applications of the divergence algorithm to avoid potential problems.
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A direct line of communication has been opened between #Binance and the #USTC Quant Team.
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… pic.twitter.com/OSXixBpeuM
— RedlineDrifter (@RedlineDrifter) July 12, 2023
The divergence protocol, advocated by Drifter, plays a crucial role in achieving a sustainable USTC repeg. This protocol involves charging an algorithmic/dynamic fee equal to the difference in price between the peg and market price. Substantial progress has been made in integrating the USTC repeg mechanisms on various top centralized exchanges (CEXs) and decentralized exchanges (DEXs). Binance, Kucoin, Huobi, MEXC Global, and Terraswap have all shown interest and acknowledged the re-peg initiatives.
Drifter also revealed that KuCoin’s technical department is currently reviewing the USTC repeg proposal, indicating their intention to provide further responses. The Quant Team has already engaged in initial discussions with Binance, KuCoin, and Terraswap DEX. These developments bring hope for the revival of the LUNC price, which suffered a significant decline following the collapse of the Do Kwon-founded Terra ecosystem in May and has yet to recover.
USTC To Revitalize
To facilitate the project’s revitalization, strategic initiatives such as the USTC repeg to achieve parity with $1 and the relaunch of the ecosystem’s DeFi platform, Terraport, is underway. Additionally, burns and staking activities are being leveraged to support the Terra Classic community. Classy, one of the validators, has decided to burn 100% of his commission until year-end. Binance has also been actively executing monthly LUNC burns, with their latest burn totalling 2.6 billion LUNC.
At the time of writing, the LUNC token is trading at $0.000084. While LUNC has shown positive momentum in the past 24 hours and seven days, with a surge of 1.17% and 1.27%, respectively, it has experienced a decline of over 12% in the past 30 days. However, with the progress being made in the USTC revitalization efforts, coupled with the upcoming relaunch of Terraport and other positive initiatives, there is optimism for a potential rebound in the LUNC price.
Disclaimer: The information provided in this news article is based on the disclosed details and discussions within the Terra Classic community. Cryptocurrency investments carry inherent risks, and readers should exercise caution and conduct their research before making any investment decisions.