An earlier algorithmic stablecoin on the Terra blockchain. Created by Terraform Labs in 2018 and co-founded by South Korean crypto entrepreneur Do Kwon. TerraUSD (UST symbol) was designed as a payments system. On the TerraUSD blockchain, native UST tokens were matched with native LUNA tokens, and both were adjusted to keep UST in equilibrium. This is the approach of an "algorithmic" stablecoin.
Perhaps LUNAtic Was Clairvoyant
Fans of TerraUSD were known as LUNAtics; however, one may wonder if that moniker was psychic. In May 2022, the blockchain made headlines when UST plummeted from close to one dollar to less than 10 cents, and LUNA, which once reached over $116, fell to near zero.
LUNA Was Reborn
Very quickly, Do Kwon hard forked the original chain, which became Luna Classic (LUNC symbol). A new LUNA token, which resides on a Cosmos chain, is not tied to TerraUSD. See
stablecoin.