USTD – Decentralized & Fully Automated Yield-Bearing Stablecoin on Terra Classic Blockchain - Whitepaper v.0.1
Concept by RedlineDrifter & REDniks
Disclaimers:
Legal and Regulatory Notice:
This whitepaper is provided for informational and conceptual purposes only and does not constitute an offer or solicitation to purchase, sell, or redeem USTD tokens through regulated channels.
The USTD is fully decentralized and is offered solely as a utility token and is not a security, with no promise or guarantee of profit. All yield returns are entirely subject to market dynamics and the underlying smart contract mechanics. In other words, yields are not fixed or guaranteed and may vary according to liquidity, arbitrage opportunities, and other decentralized market forces. Additionally, all protocol decisions—including those affecting yield parameters—are made collectively via the decentralized governance framework of Terra Classic, ensuring that no single party has the authority to guarantee or manipulate returns. Prospective investors and users should conduct their own independent research and consult with qualified legal and financial advisors before engaging with USTD.
USTD, as described herein, is not currently compliant with the Markets in Crypto-Assets (MiCA) Regulation, and therefore, no regulated purchase or redemption of USTD tokens is being offered to EU persons. Until such time as USTD meets all applicable MiCA requirements—including issuer accountability, reporting obligations, and consumer protection standards—it shall not be made available for trading or redemption in any EU-regulated market or platform. Prospective investors and users in the EU are advised to consult with their own legal and financial advisors before engaging with USTD, as the regulatory status of this asset in the EU remains subject to change and may impact its availability and use under local laws.
General Information & No Investment Advice:
This whitepaper is provided solely for informational purposes and does not constitute investment advice, a solicitation, or an offer to buy or sell any securities, tokens, or other financial instruments. The content herein is intended to describe a concept for a decentralized yield-bearing stablecoin (USTD) built on Terra Classic (LUNC) and should not be interpreted as financial or legal advice. Readers are strongly encouraged to conduct their own independent research, consult with qualified legal and financial advisors, and consider their personal circumstances before making any investment decisions. The authors, contributors, and affiliated parties expressly disclaim any and all liability arising from the use or reliance on the information contained in this whitepaper.
Forward-Looking Statements:
This whitepaper contains forward-looking statements regarding the anticipated performance, future yields, network adoption, and potential benefits of USTD. Such statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual outcomes to differ materially. No representation or warranty is made, and no undertaking is given, that any forward-looking statements will prove to be accurate. Investors should not place undue reliance on these forward-looking statements, and are advised to consider the risks carefully before making any decisions.
Overview:
USTD is a next-generation stablecoin built directly on Terra Classic L1. Unlike previous attempts, USTD is conceived as a completely new stablecoin with additional long-term side goal of revitalizing USTC. It is designed not only to preserve a 1:1 peg with the US Dollar by being fully collateralized by fiat-backed stablecoins (USDC/USDT) but also to reward its holders with attractive yields—all delivered automatically through periodic airdrops.
USTD leverages Terra Classic’s high throughput, low fees, and robust governance framework (which governs all Terra Classic protocols) to offer a secure, transparent, and efficient solution for both retail and institutional investors.
Key Highlights:
Stable & Yield-Bearing:
• Every USTD token is minted 1:1 against USDC/USDT, and the deposited collateral is deployed into low-risk, high-liquidity decentralized pools. Approximately 20% APR (on average) is generated from these pools. Approximately 50% of the yield generated is distributed directly to USTD holders as regular on-chain airdrops.
Automatic Yield Distribution:
• Unlike many yield-bearing protocols that require additional staking, USTD automatically distributes yield via regular on-chain airdrops.
Transition from USTC:
• USTD is introduced as a completely new stablecoin designed to fill the space of the currently defunct USTC. This initiative is both a fresh start with enhanced security, transparency, yield mechanics and profit generation for Terra Classic, but also in long run tool to revive USTC.
Integrated Governance:
• USTD is fully integrated into Terra Classic’s on-chain governance. All decisions, upgrades, and risk management measures affecting USTD are managed by Terra Classic Governance, ensuring alignment with the broader ecosystem.
Robust Security:
• By being fully backed with regulated assets and operating on Terra Classic L1, USTD benefits from enhanced security and transparent reserve management.
Compliance:
• USTD’s focus on yield and collateral keeps it outside the heavy “payment stablecoin” regime of the U.S. GENIUS and STABLE Acts, sparing the project costly bank‑style licensing. In Europe, MiCA applies only if USTD is publicly offered, and the protocol can tap that market by appointing a dedicated reporting entity while preserving its decentralized design. Until then, USTD remains freely usable across global DeFi, giving holders a secure, transparent, and regulator‑resilient asset.
Market Opportunity:
• Amid a rapidly evolving stablecoin and DeFi landscape, USTD addresses current shortcomings—including centralization risks and low yield—thus positioning itself as a compelling solution for a broad spectrum of users.
Vision & Mission:
Our vision is to redefine digital finance by providing a stable, yield-bearing asset that rewards holders automatically and operates in a fully decentralized, trustless environment. Our mission is to empower investors by creating an asset that offers both stability and effortless passive income—all governed under the established Terra Classic framework.
In addition, the UST Protocol, serving as the innovative engine behind USTD, is designed to complement Terra Classic’s existing Staking Protocol. By offering automated yield-bearing capabilities alongside the traditional staking mechanism, Terra Classic L1 will benefit from a dual-product ecosystem.
This synergy will provide users with both passive income through conventional staking and innovative stablecoin generating yield through automatic airdrops, enhancing overall network value and diversifying user engagement.
