TerraUSD (UST) climbed to a high of US$0.84 on Thursday after Terra proposed a network upgrade to increase the blockchain’s native token LUNA, in hopes to save its algorithmic stablecoin’s peg to the greenback.  

See related article: Run on UST cuts the ground from under Terra’s feet

Fast facts

The UST is minted by locking LUNA, meaning Terra intends to concede LUNA’s value to steady the UST rollercoaster.In a series of tweets, Terraform Labs founder Do Kwon said the increased LUNA supply will be sold on the open market in order to raise funds and rescue the UST peg. 

However, LUNA had dropped to almost US$3 by the time Kwon announced the recovery measure, and is trading at US$0.75 at press time, according to CoinGecko data.Kwon added Terra is also seeking external capital sources. 

The UST fiasco has led to market-wide concerns in regard to the feasibility of algorithmic stablecoins in tumultuous market conditions.UST was trading at US$0.72 at press time

See related article: Terra’s UST fiasco cited by Yellen, who warns about stablecoins

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