The Return of UST and Anchor: How to be Eligible for the USTC Airdrop?

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The Return of UST and Anchor: How to be Eligible for the USTC Airdrop?

In the turbulent crypto space, we’re at the brink of a resurrection. Notorious UST and Anchor, which are familiar names to those in the crypto community, or maybe those who have left scarred. They are so back and this time – backed by the indisputable might of Bitcoin. This strategic move is designed to reward not just the pre-crash LUNA and UST holders, but also the new entrants holding USTC. We take a look at how and what the airdrop is related to.

What is Mint Cash?

Mint Cash is a Bitcoin-backed, permissionless, and price-stable payments and savings currency system. It is purely backed by Bitcoin collateral, based on the original Terra Classic codebase. A key difference from Terra is that Mint Cash requires Bitcoin collateral to mint new Cash stablecoins, not Luna but BTC.

What Happened to Terra and Anchor?

They both imploded. According to some, Anchor Protocol didn’t fail on its own, it was the system that could have worked if the yield wasn’t heavily subsidized with excess UST, and there was an organic mechanism to maintain stable yield savings rates. A lot of ifs of course but Anchor stopped working because the Terra stablecoin crashed, not the other way around.

What is Mint Cash’s Approach?

The Mint Cash team wants to rebuild what the original Terra money stablecoin system failed to deliver and bring back the Anchor Protocol to its former glory, named Anchor Sail. The core development of the stablecoin protocol falls under the Aleph Research umbrella, and is planned to be built as a Cosmos SDK-based blockchain with both CosmWasm and Berachain’s Polaris EVM support.

Is There Any Compensation for Terra’s Crash?

The reason for this grand scheme is to compensate and help recover devastating losses from the Terra stablecoin crash, for many holders. For this, the Mint Cash & Anchor Sail team will be conducting an airdrop program.

How to be eligible for Airdrop?

If you were holding UST or LUNA prior to the crash on May 10th, 2022, or if you lock and burn specified amounts of USTC with Mint Cash’s airdrop contract, you will be eligible for this program.

What Will the Airdrop Amount Be?

The details surrounding the airdrop are not yet clear and will be published on the official Mint Cash (@wemintcash) and Anchor Sail (@SailOnAnchor) accounts. Eligible participants have to lock and burn a yet to be specified amount. This news could increase the price for the coming period.

How to long or short USTC? 

Longing or shorting (on leverage) can be done with Binance Futures. They will be launching the USDS-M USTC Perpetual Contract with up to 50x leverage. This contract allows you to take both long and short positions on USTC, depending on your market expectations.

To short USTC, you would essentially be selling the USTC Perpetual Contract with the expectation that the USTC price will fall. If the price does indeed fall, you can buy back the contract at the lower price and make a profit from the price difference.

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