Luna Classic community is looking for options to peg back stablecoinsšŸ‘‡

1/15 🚨 Re-pegging Terra’s small stablecoins: The fastest way to rebuild confidence? Let’s break it down. šŸ§µšŸ‘‡ #Crypto #Terra #USTC #LUNC

2/15 While everyone focuses on USTC’s massive supply (8.19B), the real opportunity lies in low-supply stablecoins that are far easier to re-peg! šŸ’”

3/15 šŸ† The top small-cap stablecoins with the lowest total supply:

• CHTC (15,766 CHF) šŸ‡ØšŸ‡­

• EUTC (62,541 EUR) šŸ‡ŖšŸ‡ŗ

• CATC (19,074 CAD) šŸ‡ØšŸ‡¦

• HKTC (36,449 HKD) šŸ‡­šŸ‡°

• NOTC (31,028 NOK) šŸ‡³šŸ‡“

4/15 Why focus on these?

āœ… Lower supply → Easier to restore peg

āœ… Requires less liquidity to stabilize

āœ… Builds confidence before tackling bigger assets like USTC

5/15 šŸ”„ 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 šŸ”„ 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 āš–ļø 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 šŸš€ 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 šŸ›  Step 5: Governance & Treasury Reserves

• A treasury can hold USD, BTC, or other assets as backing

• This helps stabilize price movements if arbitrage alone isn’t enough.

#altcoins #LUNC #SECStaking #LUNCcommunity #Binance