The Terra ecosystem already includes over 15 stablecoins, such as TerraUSD (UST) and TerraKRW (KRT).

But before understanding what are the Terra stablecoins and what is their purpose, let’s define what is a stablecoin.

A stablecoin is a new class of cryptocurrencies that attempts to offer price stability. A stablecoin is pegged to another asset class, such has fiat currency or gold to stabilize its price.

The most popular stablecoin at the moment is USDT, supposedly backed by real-life assets. It is important to understand that most of the stablecoins on the market right now are centralized.

Terra stablecoins changes the game in this regard.

1. What are Terra stablecoins?

2. How does Terra work?

TerraUSD is highly scalable, more decentralized, and transferable between blockchains thanks to Terra’s interoperability.