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A soft-pegged stablecoin to be built on Terra, after the UST decline

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  • About five months ago, the stablecoin terrausd (UST) depegged from its $1 uniformity which caused darkness to the crypto community.
  • On November 2, USTC is selling for $0.03 per unit, and the destroyed Terra blockchain space shifted to a fresh network known as Phoneix blockchain. 

After the introduction of the Terra 2.0 network, a new native crypto namely terra (LUNA) 2.0 was also launched. After this de-pegging of the stablecoin, which caused damage to the whole crypto community. A DeFi project named Capapult Finance has revealed that it is planning to introduce a new “soft-pegged stablecoin” created on the Terra network which is named “Solid.”

The white paper of the project

The white paper of the project elaborates on Solid as an “over-collateralized and fully decentralized soft-pegged stablecoin on Terra.” Dissimilar to the initial Terra blockchain white paper which is co-authored by Do Kwon, the authors of the white paper are portrayed by the six alpha-numeric digits of two addresses — 0x7183,3A2k4j.

On October 19, the white paper emphasizes that there is a requirement for stable assets in the defi space, but fiat-supported stablecoins do not eliminate it, as per the authors of the white paper.

In line with the paper, Solid will be minted by a collateralized debt position scheme identical to Makerdao, and the client deposit interest gain guaranter and borrow the stablecoin. The process also works next to Capapult Finance’s governance token CAPA, and the project declares to draw honesty and faith to Web3, and connect with us on our way to a completely decentralized space.”

Solid states that it proposes low irregularity and more firmness by the interest-gaining collateral kept on the Capapult protocol. 

The website of Capapult protocol says that the application is “coming soon.” At the press time, the economy of complete stablecoin is estimated at $146.44 billion and the top two stablecoins are fiat-supported crypto assets. Two projects inside the stablecoin finance that support a CDP method, or over-collateralized scheme, contain Makerdao’s DAI and Tron’s USDD.

It is noteworthy that many crypto enthusiasts have trust that the beginning of the strict crypto winter was charged by Terra’s expiration. Some of the allegations pointed at Terraform labs officers such as Do Kwon, and unsuccessful projects such as the defi lending platform Anchor, have additionally hurt the community’s trust in the Terra space. 

At the same time, the website of Capapult Finance gives you an assurance that the project will draw honesty and faith to Web3,” it will be very fascinating to witness that the crypto community believes in a stablecoin made on a cracked blockchain system such as Terra.

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