Leading cryptocurrency exchange Binance has announced that Terra Classicā TerraClassicUSD ($USTC) to its list of borrowable assets, effectively making it an asset the exchangeās millions of users can borrow to use in their trading activity.
Leading cryptocurrency exchange Binance has announced that Terra Classicā TerraClassicUSD ($USTC) to its list of borrowable assets, effectively making it an asset the exchangeās millions of users can borrow to use in their trading activity.
According to BinanceāsĀ announcement, $USTC is now available on the cryptocurrency exchangeās Binance Loans platform, which āĀ 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.ā
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 aĀ petition to get listed on cryptocurrency exchange Coinbase, celebrated Binanceās move, with Terra Classic validator Lunc DAO suggesting Binance āknown that $USTC is the key to unlocked value in the $LUNC ecosystem.ā
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. WhenĀ Terraās 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 Classicās 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 theĀ time worth over $1.8 million.
Earlier this week Tobias Andersen, a blockchain engineer and senior developer at Bitcoin Suisse AG,Ā submitted a proposalĀ that outlines a solution to the problem of the uncollateralized TerraClassicUSD token. The developerās proposal would recapitalize USTC via quantitative easing and quantitative tightening, with the use of āpartitioned poolsā 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 theĀ cryptocurrencyās price surge over 500% by the end of the year.Ā