$LUNA is the native token for the Terra Luna ecosystem. Please refer to the fundamental analysis for an in-depth overview of Terra Luna. $LUNA is the primary collateral for the Terra Luna ecosystem. Not only is it utilized in supplying liquidity to optimize yields from financial instruments on the network, but it plays a crucial role in seigniorage. $UST is a decentralized token algo-pegged to the value of the US Dollar, with other decentralized stable coins pegged to the value of several other fiat denominations. There are various mechanics employed to maintain this peg. When below, $LUNA mints to purchase $UST, driving the price back up to peg by removing $UST from circulating supply. When above peg, $UST is sold for $LUNA that gets burned from circulating supply. There is a clear incentive to risk-off into $UST and hold $LUNA during a market downturn. The typical trend is that fearful investors will flee to stable coins. As more people risk-off into $UST, this drives up the price. Once the price deviates from the peg due to investors seeking risk-off assets, this also applies some buy pressure to the $LUNA token.