TerraUSD launched in September 2020 in partnership with Bittrex Global with plans to create a scalable, interchain stablecoin pegged to the US dollar. The Terra ecosystem also has a Korean Won pegged stablecoin TerraKRW, which launched before TerraUSD. Using a platform which helps developers to enable their product on various blockchains called Dropship, TerraUSD was made available on the Ethereum and Solana blockchains.

History(UST)

History(DAI)

Dai is maintained and regulated by MakerDAO, a decentralized autonomous organization (DAO) composed of the owners of its governance token, MKR, who may vote on changes to certain parameters in its smart contracts in order to ensure the stability of Dai.

Together, Dai and MakerDAO are considered the first examples of decentralized finance to receive significant adoption.

How does UST work?

In the Terra ecosystem, users can always swap the LUNA token for UST, and vice versa, at a guaranteed price of $1 – regardless of the market price of either token at the time. This is important to note because it means if demand for UST rises and its price rises above $1, LUNA holders can bank a risk-free profit by swapping $1 of LUNA to create one UST token (which due to a rise in demand in this example, is worth more than $1). Similarly, if demand is low for UST and the price falls below $1, UST holders can exchange their UST tokens at a ratio of 1:1 for LUNA – which is worth more because of their scarcity and so the user can bank another risk-free profit.

How does DAI work?

Each Dai is backed by some valuable asset held in a decentralized manner in the secure Maker smart contract platform. MakerDAO does not control any of them. Anyone can lock their tokens up as collateral and issue Dai against them. To create Dai, you send Ether to a Collateralized Debt Position (CDP) on the Maker platform. Market-based dapps will directly benefit from the launch of Dai, enabling the ecosystem to approach a new age of usability.

When we look at the status of the mint of these two stable coins, we notice that the DAI mint is more disordered than the UST, that is, it has been minted a lot on some days, but this is not the case with the UST, and almost mint regularly.If Stable Coin is minted irregularly and to a large extent, people's trust in it will decrease and as a result, the value of Stable Coin will decrease.

Conclusion

Let's look at the result we got from the charts above

• Mint method of UST is much smarter than DAI.
• The support of UST was LUNA so that the main token of terra and besides that Bitcoin also has a supporting role
• Status of UST mint was more regular than DAI.
• Price of both of them was stable and it was around 1$.
• UST transactions volume is much higher than DAI, which shows the popularity of this stable coin. I tried to show you the key points of these two stable coin of markets and I hope you, like me, recognize a better stable coin!