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UST stablecoin struggles to maintain $1 parity amid crypto market turbulence

The algorithmic stablecoin UST, which is part of the Terra crypto ecosystem, is struggling to maintain parity with the dollar following a Saturday market event.
During the market event, the price of UST hit a low of $0.9857 on Binance against USDT. This trading pair is the most voluminous for UST, with $1.36 billion in volume reported in the past 24 hours.

As previously reported by The Block, UST is an algorithmic stablecoin, meaning that it relies on market incentives to maintain its peg. In addition to a burn mechanism involving the LUNA token, which is used as part of Terra’s governance process, UST is also backed by an ever-increasing reserve of digital assets like bitcoin that can be used to defend the stablecoin’s market parity with the dollar.
It’s unclear at this time precisely why the market event took place. Crypto researcher Mika Honkasalo noted a significant swap of UST for USDC, another stablecoin, on Curve. In fact, following the loss of parity, many UST holders have

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