Decentralized stablecoin issuer Terra has issued an ambitious proposal to expand cross-chain deployment of its UST stablecoin across five projects in Ethereum, Polygon and Solana.
January 6, Terra Investigate mail UST goes Interchain: Degen Strats Part Three provides details on how $ 139 million UST and its native stablecoin MOON it would be used and on which platforms if the proposal is approved.
Terra is a blockchain that provides algorithmic stablecoins and LUNA has a market capitalization ($ 28.5 billion).
In each proposed implementation, Terra would deposit UST in varying amounts of $ 250,000 to $ 50 million to drive the stability of each of the new associated projects. The main goal is "to bring amazing use cases from UST to Ethereum DeFi." Subsequently, a vote will be held so that the participants in the governance approve the proposal.
Terra founder Do Kwon made this clear in a December 21 statement. cheep you want UST to be the dominant stablecoin in the crypto market. The distribution is intended to help Terra accelerate its efforts to increase its market capitalization. Currently, only the BUSD ($ 14 billion), USDC ($ 43 billion), and USDT ($ 78 billion) stablecoins have a higher market capitalization than UST ($ 10.3 billion).
DeFi liquidity provider and market maker Tokemak on Ethereum would receive a $ 50 million deposit in UST for at least six months if the proposal is approved.
Rari Fuse lending and lending platform would receive $ 20 million UST over six months. The funds would be deposited in three pools at Fuse to help UST become the "cheapest stable to borrow" at Fuse.
performance aggregator Convex Finance on Ethereum would receive $ 18 million for 6 months. Terra would inject greater incentives from LUNA for liquidity providers in various groups of the platform that use UST. Convex is one of the largest DeFi performance aggregators with a market capitalization of $ 1.9 billion.
Decentralized reserve OlympusDAO currency protocol (OHM) is already partnered with Terra and will launch gOHM, a wrapped version of OHM, on Terra. The proposal for Olympus includes a $ 1,425 million commitment to its treasury of $ 694 million through $ 1 million in UST bonds to remain in the treasury “forever” and $ 425,000 in LUNA incentives for 3 months.
"Bonus $ 1m UST with Olympus and 3.3 the OHM forever"
-OlympusDAO (@OlympusDAO) January 6, 2022
InvictusDAO (IN) is a fork of OlympusDAO on the Solana network. Terra would increase its expansion into Solana by contributing $ 250,000 in UST to create IN / UST bonds. Frax Finance (FRAX) will match Terra's bond contribution with $ 250,000 in FRAX according to a Jan.6 report. BUT,.
USDC Y USDT, the two biggest stablecoins by market capitalization, are currently the main participations of the project in its $ 71 million treasury. The IN team seemed optimistic about the partnership with Terra, saying at the AMA:
"Maintaining UST helps solve structural cash flow problems because we don't want to increase our USDC and USDT holdings due to centralized risk. UST helps grow the treasury and the amount of bonds we can sell. "
A representative from InvictusDAO told Cointelegraph that the proposed partnership would help the Solana ecosystem: "Since the chain is so dominated by centralized USDC / USDT stablecoins, I believe that the introduction of cross-chain quality stables will greatly benefit the ecosystem. ".
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At the time of writing, the proposal appeared to have strong support from participants in the governance of Terra.
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