Given the importance of UST (and other stable coins) to Luna’s valuation, I would like to share some thoughts on UST adoption as of end of March 21.
UST is only accessible via some exchanges and I believe this limits its adoption and becomes a bottleneck to the ecosystem.
UST is listed (for non koreans) only on Kucoin and Bittrex. In my opinion this is not enough and also a mistake for several reasons:
i) Kucoin des not have KYC/AML/CFT in place which creates a regulatory risk for UST (my opinion)
ii) Bittrex is an exchange with strong compliance but also losing ground to other exchanges
Propositions for stronger adoption
- Fiat on-ramp to buy/redeem UST a 1:1 with a KYC/AML/CFT compliant bank or partner
- Listing of UST on more regulated exchanges such as Kraken, Coinbase
- Listing of UST at more crypto brokers such as Jump, FTX, Cumberland, OSL
- Create an arbitrage on exchange (or provide discount to crypto brokers) in order to attract trading volume
- Create onchain-cross chain USDT pair using the terra bridge (send USDT on Tron/Eth/Omni, convert to UST in Terra)
A metric of success would be to see UST to reach 10 / 20bn market cap in 2 to 3 years.