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![AmitFlux Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1476019637854691331.png) Amit S [@AmitFlux](/creator/twitter/AmitFlux) on x XXX followers
Created: 2025-07-17 06:21:21 UTC

2️⃣ The algorithmic magic 🪄

UST was a stablecoin without cash or crypto backing.
Instead, it stayed at $X using code-by burning/minting $LUNA.

Here’s the idea:
If UST > $X → Mint LUNA, burn UST
If UST < $X → Burn LUNA, mint UST

This mint-burn model was the heart of Terra.


XX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1945730522061398162/c:line.svg)

**Related Topics**
[$luna](/topic/$luna)
[coins stablecoin](/topic/coins-stablecoin)
[terra 20](/topic/terra-20)
[coins defi](/topic/coins-defi)

[Post Link](https://x.com/AmitFlux/status/1945730522061398162)