When Burn Luna to Terra, where does the Luna go and Terra come from?

Oracles and Swaps
6

Can UST be swap from Luna ? One way swap Luna to Ust. If anyone make UST from Luna , terra can pay a little more for it (1% or 2% extra UST) . so people burn luna using terra swap. As a result

  1. Ust market cap up.
  2. Luna burn