TerraUSD $UST
What it is: A decentralized stablecoin that was originally designed to maintain a 1:1 peg to the US dollar. UST operates on the Terra blockchain and uses an algorithmic mechanism to maintain its stability.
Use case: UST was initially popular in the DeFi space but faced a significant collapse in May 2022, which led to major challenges in its stability. It’s a cautionary tale in the crypto world, highlighting the risks of algorithmic stablecoins.