What Is Terra? The Blockchain for Stablecoins Explained
It will logically go lower despite the supply balancing smart contracts. There is no natural stopping point because Luna (and, by extension, UST) isn’t worth anything – it was something made up as well. In this case, one UST token would always be worth $1 USD of Luna and can be freely exchanged whenever you want. Whenever you exchange one for the other, smart contracts reduce the amount outstanding of the token that you are selling and increase the [...]
