Terra Bounty (Pleasure to Burn)

The price stability of Terra is achieved by the protocol’s algorithmic market module, which incentivizes the minting or burning of Terra through arbitrage opportunities. Arbitrage occurs when a user profits from price differences between markets. The Terra protocol’s market module enables users to always trade 1 USD worth of Luna for 1 UST, and vice versa, incentivizing users to maintain the price of Terra. This same principle is true for all Terra stablecoin denominations. Users can access the mint and burn function of the market module by performing market swaps in Terra Station. Here, we focused on burning LUNA to control the UST value at $ 1.