$LUNC: Binance Adds Terra Classic’s $USTC to Borrowable Assets List
Leading cryptocurrency exchange Binance has announced that Terra Classic’ TerraClassicUSD ($USTC) to its list of borrowable assets, effectively making it an asset the exchange’s millions of users can borrow to use in their trading activity.
According to Binance’s announcement, $USTC is now available on the cryptocurrency exchange’s Binance Loans platform, which “ provides a large range of options for supported crypto assets, interest rates, collateral assets, and maximum loanable limits based on market conditions and internal risk management.”
Binance Loans currently offers users a wide number of borrowable assets including major cryptocurrencies like Bitcoin, Ethereum, Cardano, Solana, USDt, USDC, and more. To take out a loan, users must provide collateral to take out a loan.
The Terra Classic community, which has been battling for increased adoption and even created a petition to get listed on cryptocurrency exchange Coinbase, celebrated Binance’s move, with Terra Classic validator Lunc DAO suggesting Binance “known that $USTC is the key to unlocked value in the $LUNC ecosystem.”
Binance know that $USTC is the key to unlocking the value in the $LUNC ecosystemhttps://t.co/g0gVcCiprf— 🔥⚛️𝕃𝕌ℕℂ 𝔻𝔸𝕆⚛️🔥 (@LUNCDAO) October 13, 2022
The original Terra ecosystem collapsed earlier this year and later rebranded to Terra Classic, while a new, forked blockchain took the Terra brand with it. When Terra’s ecosystem collapsed, its circulating supply jumped from 340 million tokens to 6.9 trillion, and to combat the inflation $LUNC supporters have added a 1.2% tax burn on all transactions conducted on the network.
Terra Classic’s price surged earlier this month after Binance announced it will implement the burn mechanism to burn all trading fees on $LUNC spot and margin trading pairs. As reported, Binance CEO Changpeng Zhao noted the exchange burned around 5.6 billion LUNC tokens on its first burn, at the time worth over $1.8 million.
Earlier this week Tobias Andersen, a blockchain engineer and senior developer at Bitcoin Suisse AG, submitted a proposal that outlines a solution to the problem of the uncollateralized TerraClassicUSD token. The developer’s proposal would recapitalize USTC via quantitative easing and quantitative tightening, with the use of “partitioned pools” and other solutions.
The cryptocurrency community is bullish on Terra Classic in the long run, as price estimates provided on CoinMarketCap have revealed that the $LUNC community expects to see the cryptocurrency’s price surge over 500% by the end of the year.