Is Terra Luna sustainable?

It’s the largest holder of UST (with above 50% of the total supply) and without its attractive APY, Luna won’t hold on its own at the current price. The huge interest rate offered isn’t sustainable in a bear market or during significant crashes .8 Oca 2022

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What is Terra USD backed by?

(It has others pegged to different world currencies.) It maintains its peg to the U.S. dollar through a network of arbitrageurs , who buy and sell Terra’s volatile cryptocurrency, LUNA (also, confusingly, known as Terra), which is the seventh-largest cryptocurrency as of March 2022.

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Why is Luna Terra good?

Terra seeks to set itself apart through its use of fiat-pegged stablecoins, stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies . It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand.

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How does Terra Luna make money?

Who made LUNA Coin? LUNA is the native token of Terra, a blockchain developed by the Korean firm Terraform Labs. A total of $32m was raised to fund this development through the private sale of LUNA Coin . Investments came from centralised sources including Binance, Huobi, and OKEx.

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