LUNA/UST Paradigm Heating Up! Near to Launch Algorithmic Stablecoin USN on April 20, Offering 20% Annualized Returns

Rumors have it that the public blockchain Near will launch the algorithmic stablecoin USN on April 20. By the time of writing, the NEAR token has surged nearly 30%.

UST Model Fermenting! Near May Introduce Algorithmic Stablecoin USN

The emerging public chain Terra, through its native token LUNA, burns and mints algorithmic stablecoin UST, coupled with the fixed-rate protocol Anchor to provide a basic model for staking UST to earn high returns; this has led to huge success for LUNA, making UST the fourth-largest stablecoin and the largest algorithmic stablecoin.

Although there were market concerns that if the fixed-rate protocol Anchor could not be sustained, it might cause funds to exit, leading to UST runs and LUNA collapse. However, with the stabilization efforts of the UST stabilizing institution LFG Foundation injecting a large amount of funds to boost confidence, Anchor transitioning to semi-dynamic rates, and reserve assets including BTC, AVAX, among other measures, the scale of UST continues to grow, and LUNA has even reached new highs.

Twitter personality Captain Kole Crypto Insiders founder stated that Near will launch its native algorithmic stablecoin on April 20, collaborating with other well-capitalized stablecoins and offering around a 20% annualized return. This new initiative aims to drive capital circulation within the Near ecosystem, attracting more funds from other public chains.

The article also compares the market value of TerraLUNA, estimating Terra's current market value at around $40 billion, while Near's market value is $10 billion. Based on recent plans, its market value may appreciate by at least 100% in the coming months.

Previously, the Russian public chain Waves, which adopted a similar LUNA/UST model, continuously inflated the market value of its algorithmic stablecoin USDN through lending protocols. After the price of collateral public chain token WAVES plummeted, leading to insolvency and massive runs, it became a recent negative case; recently, Terra has diversified its collateral assets and continued to collaborate with other public chains and algorithmic stablecoin alliances to enhance the long-term stability of UST; it is evident that replicating the LUNA/UST model successfully requires other corresponding conditions.