Community TERRA (CUST) (CUST) Token Crypto Analytics & User Data

Community TERRA (CUST)

Community Terra (CUST) is a collateralized low volatile coin which is algorithmically pegged to dollar value. CUST is designed to address the challenges of a decentralized economy. It emerged as a solution following the death spiral of Terra LUNA. In order to achieve decentralization, Community Terra utilizes LUNC as collateral to mint new CUST tokens.

To mitigate the risks associated with excessive minting during periods of unhealthy volatility, proper risk factors have been implemented. Minting of CUST tokens is enabled only during stable market conditions, ensuring a controlled approach. CUST is equipped with additional control mechanisms to manage volatility, allowing for the rebalancing of funds between collaterals and volatile control funds in order to maintain a peg of $1.

Although the crypto markets are inherently volatile, occasional price fluctuations may occur within the range of $0.9 to $1.1. However, the price of CUST is expected to predominantly hover around the $1 mark. Arbitrary traders can leverage these opportunities to increase their holdings during organic market conditions, contributing to the stability of CUST's value in proximity to $1 through the continuous inflow of funds from swap fees.

Categories: Algo-Stables, Asset-backed Tokens, Collateralization, DeFi, DEX, Finance / Banking, Stablecoins

Report incorrect data for Community TERRA (CUST)

AlphaGrowth offers the latest in crypto analytics and user data for the Community TERRA (CUST) (CUST) cryptocurrency. Updated every 24 hours, our live Community TERRA (CUST) TVL and user graph provide the most accurate data available. Our social media metrics are also second to none, so you can track the success of the Community TERRA (CUST) project and how many users are engaging.

Should I buy CUST?

Should I buy CUST? We can’t tell you that legally but look below and DYOR. We have Community Growth, price momentum and TVL charts on CUST to help make that determination. Most importantly at AlphaGrowth we believe utility drives token value and we are the leading provider on the question what can I do with CUST Token

Community TERRA (CUST) Twitter Followers

2024 Year founded

Community TERRA (CUST) Crypto Metrics Charts

If you are looking for the latest Community TERRA (CUST) charts and metrics check below. We have charts covering a range of stats such as Community TERRA (CUST) TVL, Community TERRA (CUST) Price, Community TERRA (CUST) Social Media followers and more.

Community TERRA (CUST) Twitter followers

One way to get an idea of which cryptocurrencies are most popular is to look at the amount of Twitter followers each one has. Community TERRA (CUST) currently has None followers on Twitter. Track Community TERRA (CUST) historical followers by checking the below chart.

Community TERRA (CUST) Twitter Followers

Community TERRA (CUST) Competitors

A great way to understand Community TERRA (CUST) is to compare similar crypto projects to Community TERRA (CUST) by Categories, Chains, TVL, followers and more. We compare Community TERRA (CUST) and update data every 24 hours to give you the latest Alpha and similar projects.

Community TERRA (CUST) Competitors

FAQ on Community TERRA (CUST) & CUST Token Crypto Analytics & User Data

What is Community Terra? edit

Community Terra is a collateralized low volatile coin, with its value algorithmically pegged to the US dollar. The price of CUST is determined by the LUNC collaterals and the total supply of CUST.

What is the objective of CUST? edit

To achieve the vision of decentralized money, through decentralized assets. However, decentralized assets carry the risk of high volatility. Hence, a control mechanism is necessary to effectively utilize them in all market conditions. There will be a very low volatility, however, it would be a negligible value.

Will CUST maintain its peg at all times? edit

As the cryptocurrency markets are known for volatility, CUST cannot be pegged to 1$ at all times when using decentralized assets as collaterals. Hence, CUST will exhibit a low volatility, ranging from $0.99 to $1.01 during organic market conditions. Arbitrary traders can take advantage of these conditions by swapping LUNC for CUST and vice versa, thereby enhancing their portfolios. A portion of the swap fees collected is utilized to stabilize the price of CUST, aiming to bring it back to $1 based on an algorithm. During extreme market conditions, the swap protocol will be automatically disabled to prevent excessive minting of CUST and protect its price. This precaution ensures that traders looking to leverage such situations do not cause severe impacts. Once the price of LUNC returns to the normal range, the swap protocol will be automatically reactivated based on the defined conditions. However, when the swap protocol is disabled, CUST can still be traded for other assets on exchanges.

How is CUST different from UST (former)? edit

CUST has additional control mechanisms to avoid death spiral and to automatically rebalance itself with a portion of funds distributed to control volatility.

What happens to CUST price when swap is disabled? edit

When swap is disabled due to extreme market conditions, there is a possibility that the price of CUST can decrease to as low as $0.9 or increase to as high as $1.1 when there are no available funds in the volatile control pool. To address this, we are actively working on TERRAPEXC, a public exchange, where a portion of trading fees will be consistently directed to the volatile control pool. This measure aims to prevent extreme price fluctuations in CUST. Only the SWAP protocol will be disabled, preventing the minting of new CUST into circulation. However, a backend job, will be responsible for rebalancing the funds between collaterals and the volatile control pool to maintain the CUST price close to $1.

Is this the final version? edit

No. There are 3+ control mechanisms that are specifically not designed for the off-chain simulation. However, these mechanisms will be integrated into the on-chain protocol. Additionally, we will also examine the current fund transfer mechanism between VCF & CF, improving it based on on-chain requirements. Feedback from users will be collected during this simulation, and further enhancements will be implemented before executing it on-chain.