Luna Classic community is looking for options to peg back stablecoins👇
1/15 🚨 Re-pegging Terra’s small stablecoins: The fastest way to rebuild confidence? Let’s break it down. 🧵👇 #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! 💡
3/15 🏆 The top small-cap stablecoins with the lowest total supply:
• CHTC (15,766 CHF) 🇨🇭
• EUTC (62,541 EUR) 🇪🇺
• CATC (19,074 CAD) 🇨🇦
• HKTC (36,449 HKD) 🇭🇰
• NOTC (31,028 NOK) 🇳🇴
4/15 Why focus on these?
✅ Lower supply → Easier to restore peg
✅ Requires less liquidity to stabilize
✅ Builds confidence before tackling bigger assets like USTC
5/15 🔥 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 🔄 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 ⚖️ 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 🚀 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 🛠 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.
