Luna Classic community is looking for options to peg back stablecoinsđ
1/15 đš Re-pegging Terraâs small stablecoins: The fastest way to rebuild confidence? Letâs break it down. đ§”đ #Crypto #Terra #USTC #LUNC
2/15 While everyone focuses on USTCâs massive supply (8.19B), the real opportunity lies in low-supply stablecoins that are far easier to re-peg! đĄ
3/15 đ The top small-cap stablecoins with the lowest total supply:
âą CHTC (15,766 CHF) đšđ
âą EUTC (62,541 EUR) đȘđș
âą CATC (19,074 CAD) đšđŠ
âą HKTC (36,449 HKD) đđ°
âą NOTC (31,028 NOK) đłđŽ
4/15 Why focus on these?
â Lower supply â Easier to restore peg
â Requires less liquidity to stabilize
â Builds confidence before tackling bigger assets like USTC
5/15 đ„ Step 1: Burn excess supply
âą If any of these stablecoins were over-issued, controlled burns can quickly restore balance
âą With a supply under 100K, even modest burns could have a huge impact!
6/15 đ Step 2: Liquidity pools (LPs) for arbitrage
âą LPs allow traders to buy below $1 and sell above $1
âą If liquidity is deep enough, arbitrage will naturally restore the peg
âą Market makers can support this with incentives
7/15 âïž Step 3: Demand & Utility
âą Creating real use cases for small-cap stables ensures lasting stability
âą Example: Payments, DeFi integrations, on-chain Forex trading
âą A pegged stablecoin is useless without demand!
8/15 đ Step 4: Market Maker Support
âą Working with CEXs & DEXs to establish peg support
âą If an entity offers to back-stop price deviations, the peg becomes more resilient
9/15 đ Step 5: Governance & Treasury Reserves
âą A treasury can hold USD, BTC, or other assets as backing
âą This helps stabilize price movements if arbitrage alone isnât enough.