Luna Classic community is looking for options to peg back stablecoinsš
1/15 šØ Re-pegging Terraās small stablecoins: The fastest way to rebuild confidence? Letās break it down. š§µš #Crypto #Terra #USTC #LUNC
2/15 While everyone focuses on USTCās massive supply (8.19B), the real opportunity lies in low-supply stablecoins that are far easier to re-peg! š”
3/15 š The top small-cap stablecoins with the lowest total supply:
⢠CHTC (15,766 CHF) šØš
⢠EUTC (62,541 EUR) šŖšŗ
⢠CATC (19,074 CAD) šØš¦
⢠HKTC (36,449 HKD) šš°
⢠NOTC (31,028 NOK) š³š“
4/15 Why focus on these?
ā Lower supply ā Easier to restore peg
ā Requires less liquidity to stabilize
ā Builds confidence before tackling bigger assets like USTC
5/15 š„ Step 1: Burn excess supply
⢠If any of these stablecoins were over-issued, controlled burns can quickly restore balance
⢠With a supply under 100K, even modest burns could have a huge impact!
6/15 š Step 2: Liquidity pools (LPs) for arbitrage
⢠LPs allow traders to buy below $1 and sell above $1
⢠If liquidity is deep enough, arbitrage will naturally restore the peg
⢠Market makers can support this with incentives
7/15 āļø Step 3: Demand & Utility
⢠Creating real use cases for small-cap stables ensures lasting stability
⢠Example: Payments, DeFi integrations, on-chain Forex trading
⢠A pegged stablecoin is useless without demand!
8/15 š Step 4: Market Maker Support
⢠Working with CEXs & DEXs to establish peg support
⢠If an entity offers to back-stop price deviations, the peg becomes more resilient
9/15 š Step 5: Governance & Treasury Reserves
⢠A treasury can hold USD, BTC, or other assets as backing
⢠This helps stabilize price movements if arbitrage alone isnāt enough.