USTCC Overview
A 101.5% Over-Collateralized USD Stablecoin for Terra Classic
1. What USTCC Is
USTCC is a USD stablecoin built on Terra Classic designed to reduce USTC supply while providing a stable digital dollar for the ecosystem.
- 1 USTCC is redeemable for 1 USDC
- Over-collateralized from launch
- Initial collateral ratio: 101.5%
2. Why USTCC Exists
USTC currently trades around $0.006 with more than 5.5 billion tokens in circulation.
USTCC introduces a system where every mint automatically:
- Buys USTC
- Burns USTC
- Locks USTC in a vault
This reduces circulating supply and helps rebuild trust.
3. Core Objectives
- Deliver a 101.5% over-collateralized USD stablecoin
- Generate continuous buy, burn, and lock pressure on USTC
- Enable easy adoption with USDC-only minting (protocol handles USTC)
- Integrate with Terra Classic DeFi for real utility
4. Collateral Structure
| Collateral Type | Role |
|---|---|
| USDC | Primary backing |
| USTC | Secondary backing locked in governance vault |
Total backing per USTCC = 101.5%
5. Minting Process (Per 1 USTCC)
To mint 1 USTCC, three actions are required.
Step 1 — Deposit Primary Collateral
Deposit 1.00 USDC stored in the USDC vault.
Step 2 — Pay USTC Premium
Deposit $0.01 worth of USTC sent directly to the USTC vault.
Step 3 — Pay Buyback Fee
Pay 0.01 USDC fee. The protocol swaps this to USTC on a DEX.
- 50% burned permanently
- 50% stored in the USTC vault
Result After Minting
- $1.00 USDC
- $0.015 USTC value
Total collateral = 101.5%
6. Redemption Rules
- Burn 1 USTCC → receive 1 USDC
- Minimum redemption: $10,000 USTCC
- Daily redemption cap: 25% of circulating supply
7. USTC Vault Management
- Stores all USTC premiums and buyback USTC
- Auto-liquidation triggers if collateral falls below 101%
- Governance controls future vault usage
8. Impact on USTC Supply
For every $1,000,000 USTCC minted:
| Action | Value |
|---|---|
| USTC Bought | ~$10,000 |
| USTC Burned | ~$5,000 |
| USTC Vaulted | ~$5,000 |
Resulting Effects
- Buy pressure on DEX markets
- Permanent supply reduction via burns
- Reduced circulating supply via vault locking
9. Key Design Principles
- No new USTC is minted
- Fully collateralized model
- Rising USTC price increases USTC acquired per fee
- Deflation effect compounds over time
10. Benefits
- Strong backing using USDC
- Simple minting process
- Continuous USTC deflation pressure
- Compatible with Terra Classic DeFi
11. Risks and Mitigations
| Risk | Mitigation |
|---|---|
| USTC volatility | Auto-liquidation and governance top-ups |
| Low adoption | Incentives and DeFi integrations |
| Oracle and swap risks | TWAP oracles and multi-DEX routing |
| Smart contract risk | Full audits before launch |
12. Summary
USTCC is a fully collateralized USD stablecoin that automatically buys, burns, and locks USTC every time new supply is minted. This creates continuous supply reduction while providing a stable USD asset for the Terra Classic ecosystem.
