TerraClassicUSD
USTC
Evaluation Score
Overall rating on a scale of 0-10
Crypto Token Health Score Explained
Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.
AI Analysis
Comprehensive evaluation of the token
USTC (TerraClassicUSD) Overall Evaluation
Development & Community
– Active development is modest with ~3–5 commits/week and a small, 2–3 person core contributor base (5/10).
– Community support is solid: steady social-media growth, active Discord/Telegram engagement, grassroots governance and burn campaigns (7/10).
Tokenomics & Market
– Algorithmic mint-and-burn peg with LUNC; no external collateral leaves USTC exposed to depeg under stress (5/10).
– Weak liquidity, intense competition from USDC/USDT/DAI, and lingering trust issues post-2022 collapse (4/10).
Team, Governance & Security
– Fully community-driven governance via LUNC stakes, no formal core team, potential voter apathy (6/10).
– No dedicated, recent third-party audits of the peg mechanism; past ecosystem exploits and design failure in 2022 remain a red flag (3/10).
Conclusion
USTC remains operational and well-integrated in Terra Classic DeFi, but systemic depeg, security, and trust risks are high. Its algorithmic model has yet to prove resilience under severe market stress.
Detailed Analysis by Category
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About TerraClassicUSD (USTC)
TerraClassicUSD (USTC)
Symbol: USTC
Blockchain: Terra Classic
Type: Algorithmic Stablecoin
Overview
TerraClassicUSD (USTC) is a decentralized algorithmic stablecoin on the Terra Classic network, engineered to maintain a 1:1 peg with the US dollar. USTC supply is adjusted via an on-chain mint-and-burn mechanism with Terra Classic’s native token (LUNC), enabling transparent and permissionless stability without reliance on external collateral.
Key Features
- Algorithmic Peg: USD stability maintained through arbitrage incentives between USTC and LUNC.
- Decentralized Protocol: Fully on-chain mechanism governed by the Terra Classic community.
- Governance: Token holders can participate in proposals and protocol parameter updates.
- DeFi Integration: Supported across Terra Classic–based decentralized finance applications.
Applications
- Stable Medium of Exchange: Seamless payments and settlement within Terra Classic.
- Liquidity Provision: Pair with LUNC and other assets in automated market makers.
- Collateral for DeFi: Use USTC as collateral in lending, borrowing, and yield-farming protocols.
Keywords: TerraClassicUSD, USTC, algorithmic stablecoin, Terra Classic, LUNC, decentralized finance, stable medium of exchange
Similar Rated Tokens
More for DeFi Investors
- Yield Farming Analysis: Discover the best tools and strategies for maximizing your returns from yield farming in DeFi.
- AI vs Fundamentals: See how Token Vitals combines AI crypto price prediction with fundamental analysis for a balanced investment perspective.
- Risk Scores Explained: Learn how our crypto risk scores differ from traditional credit scores and what that means for your portfolio.
- On-Chain Metrics: Understand which on-chain metrics matter most when investing in tokens and how to use them effectively.
- US Investor Analytics: Access crypto analytics designed for US investors, including features to help with tax tracking and compliance.
- Finding Value: Explore our data-driven lists to uncover top undervalued DeFi tokens for 2025 and beyond.