On January 6, Terra Research announced a proposal to extend the network’s terrausd (UST) stablecoin asset through a number of different protocols on Polygon, Ethereum, and Solana. Terra’s governance blog post discusses how UST’s proposal to raise $ 139 million can bolster “awesome use cases” in the world of decentralized finance (challenge).
Terra Research proposes to extend the reach of Terrausd through 5 protocols
At the time of writing, Terra’s terrausd (UST) stablecoin is the fourth largest token pegged to the US dollar among all existing stablecoins. It is also the largest decentralized algorithmic coin linked to the dollar with US $ 10.4 million in circulation today. Additionally, the market cap of stablecoin has increased by 21.4% in the past 30 days. Now, the team behind the Terra Network wants to increase stablecoin’s exposure to five different challenge protocols across three chains.
The author of the proposal, Ezaan of Terra Research, explains how UST liquidity between chains has increased a lot and he believes that adding more USTs to specific protocols will add “awesome use cases” to the challenge. . The first UST collaboration mentioned is with Olympus DAO on Ethereum, Solana and Polygon. Essentially, Ezaan wants to activate UST bonds and tie UST $ 1 million to Olympus forever.
“Follow messages in the Agora thread, including when UST bonds are online,” Ezaan said. “$ 1 million bond transaction, bi-weekly UST updates in Olympus DAO treasury for two months, all three pair addresses where they exist and where you can join the farm.”
Collaboration with Olympus DAO, Rari Fuse, Invictus DAO, Convex and Tokemak
In addition, Ezaan mentions having collaborated with Rari Fuse of Ethereum, Invictus DAO of Solana, Convex Finance of Ethereum and Tokemak of Ethereum.
The five concepts suggested by Ezaan include:
- Olympus DAO: activate UST bonds, UST $ 1 million bond, UST 425,000 exchanged for LUNA via Astroport over 3 months for gOHM-UST incentives on Terra, Solana, Polygon
- Rari Fuse: 20m UST to prime fuse pools for 6 months to initiate the UST loan
- Invictus DAO: activate UST bonds, pledge UST $ 250,000
- Convex: US $ 18 million exchanged for LUNA via Astroport over 6 months for increased Votium incentives
- Tokemak: US $ 50 Million Deposited for 6 Months to Obtain Generalized Cash and Cultivate TOKE
According to a number of comments regarding Terra’s governance proposal, most community members liked the idea. “Great ideas. Let’s do it,” said one individual. “It’s great to see ideas on how to extend UST to other L1s and their performance so far,” one replied. another member of the Terra community. “So far, seeing no downside to the proposal and already being behind Frax in Convex, we should at least match 100M or put a little more into Tokemak to balance the forces.”
The proposal to expand the UST follows stablecoin becoming a more decentralized stablecoin than Makerdao’s DAI, in terms of market valuation. Additionally, three days before Ezaan’s proposal, Makerdao co-founder Rune Christensen tweeted that UST and MIM stablecoins were “solid Ponzis” and would end up being worth zero.
What do you think of Terra’s proposal to extend UST to five more protocols on Ethereum, Solana and Polygon? Let us know what you think of this topic in the comments section below.
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