🔥$USTC to a New Stablecoin: A Path Toward to 1$ Recovery

💱 USTC → USTR → UST1 (Stablecoin)

Convert USTC to USTR then once USTR trades above $1, users can:

Swap USTR → UST1 inside the CMM

UST1 is fully collateralized and designed for a tight peg around:

$0.95 – $1.05

Early UST1 is not sold publicly. It is minted and used by the CMM to buy yield-bearing assets.

🧱 Why This System Is Different

• Entire mechanism runs on Layer 2

• Conversion is partial only participants convert

• USTR value grows as the CMM buys and burns supply

• When USTR rises above $1, a permanent $1 price floor is created

• UST1 is minted only when collateral is strong

This creates a slow, safe, collateral-based recovery model.

🧠 Who Built the Model?

The system is designed by Ceramic, creator of CZUSD, a stablecoin that:

• Has operated for 4+ years

• Survived attacks

This experience forms the backbone of UST1’s stability design.

🔄 Conversion Phase

• Before launch on December 29

 1 USTC = 1 USTR

• On launch day December 29

 1.5 USTC = 1 USTR

• After 100 days

2.5 USTC = 1 USTR

Participation remains optional

⚖️ Risk & Opportunity

This is experimental nothing guaranteed.

But potential benefits include:

• Best rates for early converters

• USTR appreciation as demand grows

• Gradual UST1 distribution based on collateral strength

High potential reward, but requires patience.

🌍 The Bigger Picture

If successful, Terra Classic gains:

• A fully collateralized stablecoin

• A stable economic engine

• Long-term USTC value recovery

• Renewed ecosystem utility

All built without relying on L1 validators and without repeating the algorithmic design failure.

🔗 Useful Links

Preregistration:

https://ustr.preregister.ust1cmm.com/

Leonardo (official updates):

https://x.com/LeonardoLUNC

Ceramic Telegram:

https://t.me/plasticann

#USTC #TerraLabs