A popular crypto figure, WSB Trader Rocko, recently proclaimed that the algorithmic stablecoin USTC has brought the trader into the Terra community, unveiling his excitement for the Terra Classic’s proposal for a potential re-peg event, the USTC Test Environment.
On May 23, the Terra Classic (LUNC) L1 team announced its plans to create a test environment, exploring the various strategies the platform could adopt to ease the USTC re-peg. It was the L1 team Project Manager LuncBurnArmy who publicized the matter via his official Twitter page; he informed his followers that the project is based on parity and it would begin only when the upgrade to parity is achieved.
As per the official report, the project doesn’t require any additional community funds and would only utilize the already existing fund which is allocated for the team. Notably, the key objective of the L1 team to execute the event is to restore USTC’s peg to the US dollar. In addition, the team also intends to reduce LUNC’s extensive supply.
Thrilled by the news, WSB Trader Rocko, took to Twitter to share his excitement, as well as pointing to the risk of a “death spiral”:
$LUNC Prop to create USTC Test Environment for the repeg is up, Algo stablecoin is what got me into Terra community initially so really excited for this! Hope it can have the right controls to prevent a death spiral! 🙏🙏🙏https://t.co/rX9jfJf4Ln
— WSB Trader Rocko 🚀🚀🚀 (@traderrocko) May 26, 2023
Interestingly, there have been a lot of strategies that the L1 team has already taken into consideration. For instance, the team has proposed to use a divergence protocol to subject the investors who sell the asset below $1 to a penalty. Accordingly, the test environment would check the practical side of these proposals; it also would analyze how differently the strategies could be executed in different market conditions.
The crypto enthusiast’s tweet opened a space for crypto aspirants and traders to share their thoughts on the matter. While some of the community members opined about the necessity of more Algo stablecoins, others talked about their favorite stablecoin in the Terra ecosystem.
