Questions and Answers
What is tokenomics?
The set of principles and rules that govern the design, distribution, and use of a cryptocurrency
What is a white paper?
A detailed document explaining the proposed cryptocurrency and how it and any underlying technology will work
What is TerraUSD?
A stablecoin
What is the purpose of TerraUSD?
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What is one benefit of TerraUSD’s tokenomics system?
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What is the main token in Terra’s ecosystem?
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What is the goal of arbitrageurs in Terra’s ecosystem?
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What is the relationship between TerraUSD and LUNA?
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What is a key feature of TerraUSD’s tokenomics system?
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What document outlines tokenomics?
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Study Notes
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Tokenomics is the set of principles and rules that govern the design, distribution, and use of a cryptocurrency.
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Tokenomics is often outlined in a white paper, which is a detailed document explaining the proposed cryptocurrency and how it and any underlying technology will work.
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One of the main stablecoins in Terra’s ecosystem, called TerraUSD (UST), relies on a network of arbitrageurs, who swap UST with another of Terra’s tokens, LUNA, to keep the price of UST as close to $1 as possible at all times.
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This complex tokenomics system appeals to investors because it creates accessible opportunities to make low-risk gains through arbitrage trading.
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Description
Test your knowledge on the principles and rules governing the design, distribution, and use of cryptocurrencies, as well as the intricate systems that support stablecoins like TerraUSD (UST) in the cryptocurrency market.
