What are the differences between terra stable coins and other stable coins in the market?

3 answers

• Dec 25, 2021 · 3 years ago
  Terra stable coins, such as TerraUSD (UST), are unique in that they are built on the Terra blockchain. This blockchain utilizes a dual-token system, with the stable coin being pegged to a fiat currency like the US dollar. Other stable coins, like Tether (USDT) or USD Coin (USDC), are typically built on different blockchains, such as Ethereum. The choice of blockchain can impact factors like transaction speed and fees.
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• Dec 25, 2021 · 3 years ago
  When it comes to stability, terra stable coins aim to maintain a stable value by utilizing algorithmic mechanisms and a decentralized governance model. This means that the stability of terra stable coins is not solely dependent on a centralized entity or a reserve of fiat currency. On the other hand, other stable coins may rely on a centralized entity to hold reserves, which can introduce counterparty risk.
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• Dec 25, 2021 · 3 years ago
  From the perspective of BYDFi, a popular decentralized exchange, terra stable coins provide an additional option for users looking for stable assets to trade. The integration of terra stable coins on BYDFi's platform allows users to access the benefits of the Terra blockchain, such as fast and low-cost transactions. This can be particularly advantageous for traders who value efficiency and cost-effectiveness.
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