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. It is also the largest decentralized algorithmic dollar-pegged coin with $10.4 million in UST in circulation today. 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. The first UST collaboration mentioned is with the Olympus DAO on Ethereum, Solana, and Polygon. Essentially, Ezaan wants to enable UST bonds and bond $1 million UST in Olympus forever.
“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.”
Collaborating With Olympus DAO, Rari Fuse, Invictus DAO, Convex, and Tokemak
The five concepts suggested by Ezaan include:
Olympus DAO: Enable UST Bonds, bond $1m UST, 425k UST swapped to LUNA via Astroport over 3 months for gOHM-UST incentives on Terra, Solana, Polygon
Rari Fuse: 20m UST to seed fuse pools for 6 months to kickstart UST borrowing
Invictus DAO: Enable UST Bonds, bond $250k UST
Convex: $18m UST swapped to LUNA via Astroport over 6 months for increased Votium incentives
Tokemak: $50m UST deposited for 6 months to get widespread liquidity and farm TOKE
According to a number of comments concerning the Terra governance proposal, most community members 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.
What do you think about the Terra proposal to expand UST to five other protocols on Ethereum, Solana, and Polygon? Let us know what you think about this subject in the comments section below.
The post Terra Proposal Seeks to Expand UST Stablecoin to 5 Different Defi Protocols appeared first on Crypto Breaking News.