Binance, the leading cryptocurrency exchange, has added Terra Classic’s TerraClassicUSD ($USTC) to its list of borrowable assets, thereby making it an asset that the exchange’s millions of users may borrow to use in their trading activities.
$USTC is now accessible on Binance’s Binance Loans platform, which “provides a large range of options for supported crypto assets, interest rates, collateral assets, and maximum loanable limits based on market conditions and internal risk management.” according to the statement.
Binance Loans now provides customers with a diverse range of borrowable assets, including popular cryptocurrencies like as Bitcoin, Ethereum, Cardano, Solana, USDt, USDC, and others. Users must offer collateral in order to obtain a loan.
The Terra Classic community, which has been fighting for increased adoption and even started a petition to get listed on cryptocurrency exchange Coinbase, welcomed Binance’s move, with Terra Classic validator Lunc DAO stating that Binance “known that $USTC is the key to unlocked value in the $LUNC ecosystem.”
The original Terra ecosystem broke earlier this year and was later renamed as Terra Classic, while the Terra brand was taken over by a new, forked network. When Terra’s ecosystem disintegrated, its circulating supply increased from 340 million tokens to 6.9 trillion, and to fight the inflation, $LUNC supporters imposed a 1.2% tax burn on all network transactions.
The price of Terra Classic increased earlier this month as Binance declared that it will use the burn mechanism to burn all trading fees on the $LUNC spot and margin trading pairs. According to reports, Binance CEO Changpeng Zhao stated that the exchange burnt over 5.6 billion LUNC tokens on its first burn, which were valued more than $1.8 million at the time.
Tobias Andersen, a blockchain engineer and senior developer at Bitcoin Suisse AG, filed a proposal earlier this week outlining a remedy to the uncollateralized TerraClassicUSD token problem. The developer’s approach would recapitalize USTC through a combination of quantitative easing and quantitative tightening, as well as the usage of “partitioned pools” and other options.
The cryptocurrency community is positive on Terra Classic in the long run, with CoinMarketCap price projections revealing that the $LUNC community anticipates the cryptocurrency’s price to increase by more than 500% by the end of the year.