Terra’s Implosion Gave Birth to a Crazy Stablecoin Supported by Iced Tea

Written by C, Fiona

Last updated: 2022-05-24

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After TerraUSD (UST) was decoupled from the US dollar, dragging the funds of billions of investors, a new stablecoin supported by canned iced tea rose like a phoenix.

Ironically or not, USDTea, a new stablecoin, has joined the ranks of Stablecoins in the ecosystem. The stablecoin is supported by Arizona iced tea, a leading American iced tea brand, which has been sold for $0.99 since 1996.

“We plan to stabilize the troubled cryptocurrency ecosystem by introducing a new token supported by hard assets that have maintained the same price for more than 30 years,” the creator of the stablecoin wrote.”When other Stablecoins try to peg to the dollar through problematic algorithms or opaque investment strategies, we use sweet and delicious liquid to ensure our liquidity.”

Tea Centered Mobility

USDTea is an erc20 token running on the Ethereum blockchain, created by a trio of technology artists named mossy. The founder said that in order to maintain the trUST responsibility, USDTea will start operation with an initial supply of 1000 tokens, and then steadily increase its reserves.

The operation of the stablecoin is quite simple, because users only need to send tokens and processing fees, and they will get the alizona entity canned beverage delivered to them.

Other Strange Stablecoin

After UST decoupling and stricter regulation, the stablecoin supported by strange assets may begin to spread in this field. Coadjute announced plans to work with global technology company R3 to launch the world’s first mortgage-backed stablecoin.

Generally, stablecoins are supported by a series of assets, including fiat money, cryptocurrency, precious metals and algorithmic functions such as UST, while other stablecoins such as Tether (usdt) have been supported by U.S. Treasury bills and non-U.S. government bonds in advance.

The controversy over the stablecoin and the mysterious veil surrounding its support have prompted some participants to jump out of the box and look for alternatives. In order to mitigate risks, the new stablecoin is taking a hybrid approach, which is supported by assets and uses an algorithm model to maintain its linkage.

Some stablecoins, such as speraxusd, use the combination of endogenous and exogenous collateral to become a “natural income asset”, and air drop the accrued interest to the holders of stablecoins by deploying exogenous collateral to the income aggregator.