Terra plans to boost UST’s growth with a new proposal

Share This Post

Terra has submitted a proposal to increase the use cases for the TerraUSD (UST) stablecoin. The project seeks to make the stablecoin available on different chains, including Ethereum, Polygon and Solana.

On Thursday, the platform published a blog post titled, “UST Goes Interchain: Degen Strats Part Three.” The post talks about how the platform will use $139 million worth of UST and LUNA for the initiative.

Terra’s ambitious proposal

Terra is currently the second-largest blockchain in total value locked (TVL). The LUNA token is currently among the top ten, with around $28.5 billion in market capitalisation.

The proposal notes that each deployment will involve a deposit of varying amounts of UST. The amounts will range between $250,000 and $50 million. This amount will improve the scalability of every new partner project.

The platform notes that the objective is to “bring awesome UST use-cases to Ethereum DeFi. The proposals are waiting to be passed through a vote by governance participants. The voting process will be conducted later. The proposal has a high chance of passing, given that governance participants on Terra have already started showing support.

Terra pushing for the growth of UST

The founder of Terra, Do Kwon, published a tweet on December 21 saying that his plan was for UST to be the dominant stablecoin in the crypto space. The recent proposal is aimed at increasing UST’s market cap. Currently, Tether is the largest stablecoin with a market cap of $78 billion. UST’s market cap stands at around $10.3 billion.

Tokemak, a DeFi liquidity provider and market maker, noted that Ethereum will receive a deposit of $50 million worth of UST for six months if this proposal passes. Rari Fuse, a permissionless lending and borrowing platform, would receive $20 million worth of UST in six months.

Convex Finance, a yield aggregator protocol on Ethereum, will receive $18 million in UST for six months. Additionally, LUNA tokens will also be issued as incentives to liquidity providers in pools on Convex Finance that use UST.

InvictusDAO, a fork of OlympusDAO running on Solana, has announced its collaboration with Terra. Commenting on this collaboration, the team at InvictusDAO noted, “holding UST helps solve structural treasury problems because we don’t want to increase our USDC and USDT holdings as it comes with centralised risk. UST helps grow the treasury and the amount of bonds we can sell.”

Your capital is at risk.

Read more:

Read Entire Article

Related Posts

Bitcoin Completes ‘End Run,’ Analyst Says – Here’s What It Means

Bitcoin (BTC) took a nasty spill over the weekend Plunging to a gut-wrenching $60,850 before staging a partial recovery to hover around $64,500, this sudden price drop has left the crypto community

ETF Analyst Offers Sober Outlook on Newly Approved Hong Kong Bitcoin ETFs; Challenges $25B Inflow Estimate

Following Hong Kong’s authorization of the region’s first spot bitcoin and ethereum exchange-traded funds (ETFs), Bloomberg’s senior ETF analyst Eric Balchunas shared his

Bitcoin Rebounds After Nearing Cost Basis Of Short-Term Whales

Bitcoin has found a rebound back above the $66,000 mark following a drop towards the on-chain cost basis of the short-term holder whales Bitcoin Drawdown Had Nearly Put Short-Term Whales Under

Bitcoin Open Interest Has Cooled Off, Good Sign For Bulls?

Data shows the Bitcoin Open Interest has observed a notable cool off recently, something that could be positive for the rally’s hopes Bitcoin Open Interest Has Cooled Down From Recent

Bitcoin sees record fees in 2024 as halving approaches

Quick Take As the Bitcoin halving draws near, Bitcoin activity is witnessing a significant uptick in fees and hash rate Fees On April 12, Bitcoin recorded its highest one-day fees in 2024, reaching

Short Sellers Target Bitcoin Miners as Reward Halving Nears, $2 Billion at Stake

A recent report highlights that the collective short interest in stocks from 15 bitcoin mining companies has approached the $2 billion mark The performance of these mining stocks has declined
- Advertisement -spot_img