Terra, the Liquidity is Knocking on the Door.
Third blog post on the subject of Terra USD and Luna Classic. This post we will be focusing mainly on the re-peg of USTC. Bear with me as I like to keep it short and sweet; any confusion please refer to prior posts.
The time has come. Binance is priming a liquidity pool with the introduction of pairs $USTC/FDUSD and $USTC/TRYB. FDUSD is Hong Kong dollar custodial (China). TRYB is Turkish Lyra custodial (Turkey). East wind fiat is coming for Terra USD. They want the supply and they will take it. These coins will be pivotal in keeping Terra afloat with liquidity. Business to business is handled.
Retail inflow comes in a much different fashion. In order to get retail money there must be indirect demand for the coin. Mint Cash was released a week ago. An L3 application available on Terra Classic. Permitting a 1:1 redemption on USTC, currently trading at 5c (20x). Mint cash will act as LunaFoundationGuard once did, a Bitcoin reserve, or “insurance” to maintain peg. The ex-anchor developers have automated this process. Their first goal is to blackhole the Terra USD supply. Allowing for redemption of this mint cash will, in turn, burn USTC supply. This already kickstarted speculation; as more news releases, demand will rise. People can call it what they want, but will fold at the sight of the price chart, and the meme of repeg pre-instilled everywhere.
Everyone’s utility of the coin will be used on the Binance Smart Chain on an L3, Ambit Finance, which we all know so well. The UI/UX will be clean, presentable, and easy to use. API Integration to the actual Binance exchange will be expected shortly after. APY will be highly profitable on the lending side. This will be a good income play and will drive utility for the long term.
B2B handled, retail handled, path forward handled. With the Bitcoin ETF approval approaching it will indirectly give an American green light at the reserve, or “insurance" of USTC, Bitcoin. I fully expect LUNC to mass burn during the re-peg process in order to combat market conditions, as well as mass burn when the market making mechanism is back in play with USTC. Mint cash will decrease USTC supply drastically. At that time retail will want to mint more of it in order to use both Ambit on Binance Smart Chain and Anchor on Terra Chain. When adoption for these DeFi apps run up due to high APY, LUNC will be highly deflationary and profitable long term. December looks bright. Will be reporting when necessary.