Terra Proposal Seeks to Broaden UST Stablecoin to five Totally different Defi Protocols – Defi Bitcoin Information


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

Terra Research suggests extending the range of Terrausd to 5 protocols

At the time of writing, Terras terrausd (UST) stablecoin is the fourth largest US dollar-pegged token among all existing stablecoins. It is also the largest decentralized algorithmic dollar-linked coin with $ 10.4 million in circulation today. Additionally, the stablecoin’s market capitalization has increased 21.4% over the past 30 days. Now the team behind the Terra network wants to increase the stablecoin’s exposure to five different defi protocols on three chains.

Proposal writer, Ezaan of Terra Research, explains how cross-chain UST liquidity has grown dramatically, and he thinks adding more UST to certain protocols will add “awesome use cases” to the def. The first UST collaboration mentioned is with the Olympus DAO on Ethereum, Solana and Polygon. Essentially, Ezaan wants to enable UST bonds and tie $ 1 million UST to Olympus forever.

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

Collaboration with Olympus DAO, Rari Fuse, Invictus DAO, Convex and Tokemak

Ezaan also mentions the collaboration with Rari Fuse from Ethereum, Invictus DAO from Solana, Convex Finance from Ethereum and Tokemak from Ethereum.

The five concepts suggested by Ezaan include:

  • Olympus DAO: activate UST bonds, borrow 1 million USD UST, 425k UST exchanged via Astroport over 3 months to LUNA to receive gOHM-UST incentives on Terra, Solana, Polygon
  • Rari backup: UST 20 million to set backup pools for 6 months to stimulate UST borrowing
  • Invictus DAO: activate UST bonds, borrow $ 250,000
  • Convex: 18 million USD UST exchanged via Astroport over 6 months to LUNA in order to receive more voting incentives
  • Tokemak: $ 50 million UST deposited for 6 months to receive extensive liquidity and TOKE. to farm

According to a number of comments on the terra governance proposal, most community members liked the idea. “Great ideas. Let’s do it, ”said one person. “It’s great to see ideas on how to extend the UST to other L1s and how they have worked so far,” replied another member of the Terra community. “So far we don’t see any disadvantages in the proposal and are already behind Frax at Convex. We should reach at least 100M or put a little more in tokemak to balance the forces.”

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

Tags in this story

Astroport, Convex, DAI, Ethereum, Ezaan, Invictus DAO, LUNA, Makerdao, market capitalization, market valuation, MIM, Olympus DAO, Polygon, Rari Fuse, Rune Christensen, Solana, Stablecoin, Stablecoin Market, Stablecoin Exposition, Terra, Terra (LUNA) , Terra Governance, Terra Network, TerraUSD, Tokemak, Tokmak, UST, UST Defi

What do you think of Terra’s proposal to expand UST to five other protocols on Ethereum, Solana and Polygon? Let us know what you think on this matter in the comments below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a Florida-based financial tech journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. As of September 2015, Redman has written more than 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.

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