EUTC Repeg Whitepaper: Rebuilding USTC on Terra Classic
Introduction
After the collapse of USTC in May 2022, the Terra Classic community has worked tirelessly to keep the ecosystem alive. The EUTC Repeg Plan aims to rebuild USTC through a transparent, modular, and sustainable strategy.
Constraints and Considerations
The plan was developed under several technical, political, and economic constraints, including:
- Technical limitations: No reliance on centralized stablecoins, no access to fiat bridges, and limited oracle diversity.
- Governance reality: The need to operate with transparency, with every module tied to community voting and on-chain accountability.
- Layer 1 first: To avoid smart contract risks and performance bottlenecks, core functions are designed as Layer 1 modules.
What is EUTC?
EUTC is a new euro-pegged stablecoin that:
- Is collateral-backed at 150% minimum
- Is minted and managed through Layer 1 modules
- Is governed by the Terra Classic community
- Has its initial collateral come from on-chain assets: LUNC, USTC, EUTC itself
Core Architecture: The Modular Approach
The EUTC system consists of five Layer 1 modules:
1. Collateral Management Module
2. Collateral Yield Module
3. Divergence Fee Module
4. Liquidity Pool Management Module
5. Oracle System Strengthening
Economics
The EUTC system:
- Does not burn LUNC to mint EUTC
- Does not use an algorithmic loop to determine value
- Requires every EUTC to be backed by €1.50 in real on-chain assets
Implementation Timeline
The plan unfolds in three phases:
1. Preparation and Pool Deployment
2. Stabilization and Automation
3. Adoption and Growth
Conclusion
The EUTC Repeg Plan is a structured, auditable, and scalable solution for rebuilding USTC. The community is encouraged to read, challenge, and improve the plan to create a better future for Terra Classic.
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