Welcome to the latest issue of Cointelegraph’s Decentralized Finance Newsletter.

The new year has arrived and the expectations for innovation, utility and mainstream adoption of DeFi are greater than ever. Read on to learn more about the first stories in 2022.

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Terra Research introduces a new benefit for TerraUSD and LUNA
This week, the decentralized issuer of the algorithmic stablecoin Terra published an ambitious proposal through its research team to expand the distribution of TerraUSD stablecoin (UST) across chains across five projects on Ethereum, Polygon and Solana.

A long post entitled “UST Goes Interchain: Degen Strats Part Three” describing the methods and procedures by which the original $ 139 million Terra, LUNA and TerraUSD (UST) token can be used “to provide amazing UST usage cases for Ethereum DeFi”.

In the proposed strategy, which has received 3,500 views and six responses from community members calling themselves Lunatics, Terra will contribute $ 250,000 to $ 50 million in ground reservoirs to increase the stability of each of the new partnerships. A community-led vote is expected in the near future to determine the confirmation.

Defi’s liquidity provider and market maker Tokemak will receive $ 50 million in ground reservoirs over a maximum of six months, and the lending platform Rari Fuse will receive $ 20 million in ground reservoirs over the same period. Yield pool Convex Finance will receive $ 18 million and OlympusDAO will receive $ 1 million in floor bonds and $ 425,000 in three-month LUNA incentives.

The spread of terrestrial treasuries across several projects will support Terra in accelerating quantitative ambitions as a market value in the stablecoin market. At the time of writing, USDT Tether is in the lead with around $ 78 billion, while USDC Circle is in second place with $ 43 billion, followed by Binance’s BUSD with $ 14 billion, and finally UST with a market value of $ 10 billion.

In a recent tweet, founder Terra Do Kwon revealed his ambition to push his own network assets, UST, to the forefront of the stablecoin market, ahead of US dollar clients Coin, Tether and Binance USD (BUSD), among others.

Related topics: Terra (LUNA) reaches $ 20 billion record TVL surpasses Binance Smart Chain

The new Aave Arc service aims to expand the institutional reach of DeFi
This week, the Aave Decentralized Lending Platform (AAVE) announced the launch of the Aave Arc Unauthorized Lending and Liquidity Suite with the goal of promoting broader institutional participation in fully compatible and regulated decentralized financial services.

30 organizations have gained access to a large whitelist of services, including Fireblock’s digital asset vault as well as Anubi Digital, Canvas Digital, SEBA Bank, GSR and Celsius Crypto Profit Aggregator.

Upon successful fulfillment of prerequisites such as KYC and anti-money laundering protocols, these companies will have exclusive access to “secure participation in DeFi as liquidity providers and borrowers” in a market that has grown in total value 10x, after registering exactly 12 months – from 30 billion to $ 300 billion.

Stani Kulekhov, CEO and founder of Aave, shared his comments on the expansion potential of the DeFi market with the introduction of this new service, and said:

DeFi represents a powerful wave of financial innovation, including openness, liquidity and programmability, and has been out of reach for traditional financial institutions for far too long. The launch of Aave Arc allows these organizations to participate in DeFi in an appropriate way for the first time. time.”
Related: Without investing, institutional crypto-investors can not avoid inflation

WonderFi buys parent company Bitbuy for $ 162 million
DeFi platform WonderFi Technologies agreed to buy First Ledger Corp., the parent company of Canada’s first regulated cryptocurrency exchange Bitbuy, this week for $ 162 million in an effort to expand the presence of cryptocurrency and DeFi across the country.

Supported by popular billionaire investor Kevin O’Leary, WonderFi has detailed its financing method by issuing 70 million new shares and paying $ 15.7 million in advance payments as well as $ 23 million in deferred cash via a receipt after return.

Source: CoinTelegraph