Algostables
I guess it is time to talk about algorithmic stablecoins again. Terra, or UST, is an algorithmic stablecoin whose price is maintained by an arbitrage relationship with another cryptocurrency, Luna. One UST is supposed to be worth one US dollar, and one UST can always be exchanged for a floating quantity of Luna with a market value of $1. If a UST is trading at $0.99, you can buy it for $0.99 and then exchange it for $1 worth of Luna, making an instant profit. If it is trading at $1.01, you can buy $1 worth of Luna (for $1) and ...
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