UST, a so-called algorithmic stablecoin, works with LUNA to maintain a price of $1 using game theory and a set of blockchain-based mint and burn mechanics. In an ideal world, these mechanics are supposed to ensure traders can always swap $1 worth of UST for $1 worth of LUNA, which has a floating price and is meant to serve as a kind of shock absorber for UST price volatility.
Source: https://www.coindesk.com/tech/2022/05/10/ust-stablecoin-veers-wildly-from-dollar-peg-heres-the-latest/?utm_medium=referral&utm_source=rss&utm_campaign=headlines