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 Terrausd (UST) assets across a number of different protocols on Polygon, Ethereum, and Solana. A blog post on Terra’s Governance discusses how a proposal to leverage $139 million from ground-based reservoirs could advance “great use cases” in the (challenging) world of decentralized finance.

Terra Research proposes extending Terrausd’s reach across 5 protocols

At the time of writing, Terra’s terrausd (UST) stablecoin is the fourth largest token pegged to the US dollar among all the stablecoins in existence. It is also the largest cryptocurrency pegged to the decentralized dollar with a value of $10.4 million in terrestrial treasuries in circulation today. Moreover, the market cap of stablecoins has increased by 21.4% over the past 30 days. The team behind Terra Network now wants to increase the exposure of the stablecoin to five different challenging protocols on three chains.

The author of the proposal, Ezaan of Terra Research, explains how terrestrial reservoir liquidity across the chains has grown exponentially and believes adding more terrestrial reservoirs to specific protocols will add ‘cool use cases’ to the challenge. UST’s first mentioned collaboration is with Olympus DAO on Ethereum, Solana, and Polygon. Essentially, Ezaan wants to enable the $1 million treasury bonds and bonds on Olympus forever.

“Follow-up publications on the subject of the agora including when to activate the bonds for underground reservoirs,” Azzan said. “1 million bond transactions, bi-monthly updates on floor vaults in Olympus DAO treasury for two months, all three addresses when they are located and where you can join the farm.”

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

In addition, Ezaan mentions collaborations with Ethereum’s Rari Fuse, Solana’s Invictus DAO, Ethereum’s Convex Finance, and Ethereum’s Tokemak.

The five concepts proposed by Azzan include:

  • Olympus Dow: UST Enabled Bonds, $1M Bonds, $425K Transferred to LUNA via Astroport over 3 months for gOHM-UST Incentives on Terra, Solana and Polygon
  • Rari Fuse: 20 million valve pool seed ground tanks for 6 months to start borrowing ground tanks
  • Invictus DAO: Enable UST Bond, $250,000 Bond
  • Convex: $18 million exchanged for LUNA via Astroport over 6 months to boost Votium incentives
  • Tokemak: $50 million deposited for 6 months for large-scale cash and TOKE farm

According to a number of comments regarding the Terra management proposal, most members of the community liked the idea. “Great ideas. One person said: Let’s do it. Another member of the Terra community replied: “It’s great to see ideas on how to expand the floor tanks to include other L1s and how they’ve performed so far.” “So far we don’t see any flaws with the proposal and already being behind Frax in Convex, we should equal at least $100m or put more into Tokemak to balance the forces.”

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

Tags in this story

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 exposure, Terra, terra ( LUNA), Terra Governance, Terra Network, TerraUSD, Tokemak, Tokmak, UST, UST Defi

What do you think of Terra’s proposal to expand terrestrial reservoirs to five more protocols around Ethereum, Solana, and Polygon? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is the head of news at Bitcoin.com News and a technology financial journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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