Terra Proposal Seeks to Expand UST Stablecoin to 5 Different Defi Protocols – Defi Bitcoin News

On January 6, Terra Research announced a proposal to expand the network’s stablecoin asset terrausd (UST) across a number of different protocols on Polygon, Ethereum, and Solana. Terra’s governance blog post discusses how the proposal to leverage $139 million of UST can bolster “awesome use-cases” in the world of decentralized finance (defi).

Terra Research Proposes to Expand Terrausd’s Reach Across 5 Protocols

At the time of writing, Terra’s terrausd (UST) stablecoin is the fourth-largest U.S. dollar-pegged token among all the stablecoins in existence. The largest U.S. dollar-pegged decentralized coin, with $10.4million in UST currently in circulation, is Terra’s terrausd (UST) Furthermore, the stablecoin’s market capitalization has increased 21.4% during the last 30 days. Now the team behind the Terra network wants to increase the stablecoin’s exposure to five different defi protocols on three chains.

The proposal’s author, Ezaan from Terra Research, explains how cross-chain UST liquidity has grown a great deal and he thinks that adding more UST to specific protocols will add “awesome use-cases” to defi. First, UST cooperation is mentioned with Olympus DAOs on Ethereum, Solana and Polygon. Ezaan hopes to make UST bonds possible and to bond $1,000,000 UST in Olympus for ever.

“Follow up posts in the Agora thread including when UST bonds are live,” Ezaan said. “1m bond transaction, bi-weekly updates on UST in the Olympus DAO treasury for two months, all three pair addresses when they exist and where you can join the farm.”

Working with Olympus DAO. Rari Fuse. Invictus DAO. Convex.

Additionally, Ezaan mentions collaborating with Ethereum’s Rari Fuse, Solana’s Invictus DAO, Ethereum’s Convex Finance, and Ethereum’s Tokemak.

Ezaan suggests the following five ideas:

  • Olympus DAO – Enable UST Bonds. Over 3 Months, bonds $1m UST and 425k UST are swapped to LUNA via Astroport. This is for gOHM UST incentives on Terra. Solana.
  • Rari Fuse 20m UST for seeding fuse pools during 6 months of UST borrowing
  • Invictus DAO – Enable UST bonds, bond $250k UST
  • Convex: 18.5m UST to LUNA via Astroport for Votium Incentive Increases
  • Tokemak – $50m UST deposited 6 months in advance to obtain widespread liquidity and farm TOKE

Many comments about the Terra governance proposal showed that most members of the community liked the idea. “Great ideas. Let’s do it,” one individual said. “It’s great to see ideas on how to expand the UST to other L1’s and how they performed so far,” another Terra community member replied. “So far not seeing any drawbacks with the proposal and being already behind Frax at Convex, we should at least equal 100M or put a little more in Tokemak to balance the forces.”

The proposal to expand UST follows the stablecoin becoming a larger decentralized stablecoin than Makerdao’s DAI, in terms of market valuation. Moreover, three days before Ezaan’s proposal, the co-founder of Makerdao, Rune Christensen, tweeted that the stablecoins UST and MIM were “solid Ponzis” and eventually they would be worth zero.

This story contains tags
Astroport, Convex, DAI, Ethereum, Ezaan, Invictus DAO, LUNA, makerdao, Market Cap, Market Valuation, MIM, Olympus DAO, Polygon, Rari Fuse, Rune Christensen, Solana, Stablecoin, Stablecoin Market, stablecoin’s exposure, Terra, terra (LUNA), Terra governance, Terra Network, TerraUSD, Tokemak, Tokmak, UST, UST Defi

Let us know your thoughts on the Terra proposal for expanding UST to five more protocols such as Solana, Ethereum and Polygon. Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, a Florida-based financial journalist and news lead at Bitcoin.com News is Jamie Redman. Redman joined the cryptocurrency community in 2011 and has been an active participant ever since. Since 2011, Redman has been an active member of the cryptocurrency community. Redman is a prolific writer for Bitcoin.com News, with over 5,000 articles on disruptive protocols.

Images CreditsShutterstock. Pixabay. Wiki Commons

DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or be attributed to the company or the author.

Get more Crypto News at CFX Magazine