Terra, a decentralized stablecoin issuer, has submitted an ambitious proposal to expand the cross-chain distribution of TerraUSD (UST) stablecoin through five projects on Ethereum, Polygon and Solana.

Terra Research’s “UST Goes Interchain: Degen Strats Part III” was released on Thursday, and describes how $ 139 million USD and Terra’s stablecoin, LUNA, will be used, and on platforms if the offer is accepted.

Terra is a blockchain that provides stablecoin algorithms, and LUNA has a market value of $ 28.5 billion.

In each proposed deployment, Terra will contribute to the ground reservoirs in varying amounts from $ 250,000 to $ 50 million to increase the stability of each of the new partner projects. The main goal is to “bring fantastic land-based reservoir use cases to Ethereum DeFi.” Those involved in corporate governance will vote to approve the proposal at a later date.

Founder Terra Do Kwon explained in a tweet on December 21 that he wants UST to be the dominant stack coin in the cryptocurrency market. Distribution is intended to help Terra accelerate its efforts to increase market value. Currently, only Binance USD (BUSD) (USD 14 billion), USD Coin (USDC) (USD 43 billion) and Tether (USDT) (USD 78 billion) have a market value above UST (USD 10.3 billion).

If the offer is accepted, the provider of decentralized finance (DeFi) and market maker Tokemak Ethereum will receive a deposit of $ 50 million for at least six months.

Unlimited lending and lending platform Rari Fuse will receive $ 20 million over six months. The money will be put into three pools at Fuse to help the underground reservoirs become the “cheapest stable loan” in Fuse.

Convex Finance’s revenue pool to buy Ethereum will receive $ 18 million over six months. Terra will offer additional LUNA incentives to liquidity providers across multiple platform combinations using floor-to-ceiling reservoirs. Convex is one of the largest DeFi revenue generators with a capital of $ 1.9 billion.

OlympusDAO’s Decentralized Reserve Currency (OHM) protocol is already one of Terra’s partners, and it will launch gOHM, a packaged version of OHM, on Terra. Olympus’ proposal includes a $ 1.425 million commitment to the Treasury for $ 694 million to $ 1 million in treasury bonds to remain in the treasury “forever” and $ 425,000 in LUNA benefits over three months …

InvictusDAO is an offshoot of OlympusDAO on the Solana Network. Terra will expand the Solana expansion by investing $ 250,000 in underground reservoirs to create an IN / UST bond. Frax Finance will match Terra’s contribution of $ 250,000 in FRAX tokens, according to the AMA on Thursday.

USDC and USDT, the two largest stable coins by market value, are currently the main assets of the project in the treasury of 71 million dollars. Team InvictusDAO seemed optimistic about the collaboration with Terra and told AMA:

“Keeping the floor vaults helps solve the structural problems of the Treasury, because we do not want to increase our holdings in USDC and USDT, because this is a key risk. The floor cabinets help to increase the treasury and the number of bonds we can sell. ”
A spokesman for InvictusDAO told Cointelegraph that the proposed partnership will help Solana’s ecosystem: “With USDC / USDT stablecoin, I believe there will be huge benefits to the ecosystem through the use of quality stables across chains.”

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At the time of writing, this proposal appears to have received strong support from members of the Terra government.

Source: CoinTelegraph