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2024
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TVL
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.
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