š§ What is Forex Protocol in Terra Classic ā and the role of USTC
Forex Protocol is a basket of stablecoins from different countries, operating within the blockchain.
š Euro, yen, yuan, pound, rupee, and other currencies
š each represented by its own Classic-stablecoin
š everything is exchanged directly, without banks and SWIFT
Essentially ā a digital currency market within Terra Classic.
š± And where does USTC fit in?
USTC is not just a former stablecoin.
In this system, it plays the role of the center of the basket:
⢠through USTC, other currencies are balanced
⢠through it, clearing and settlements occur
⢠it connects the entire basket into one system
š„ Why this gives value to USTC
If USTC is used:
⢠not as a $1-stable
⢠but as a unit of account for the entire basket of currencies
then its value:
⢠no longer has to be $1
⢠depends on the volume of settlements, not on the peg
š This is how reserve assets work, not regular stablecoins.
Not "if", but "when" everything works, it will be š„ for both the price of USTC and the market.
$USTC $LUNC $LUNA #TerraClassic #ForexProtocol #VilsX #TerraOracle #DeFi