Terra founder Do Kwon wants to make stablecoin UST a dominating player in the crypto industry, therefore the plans are in accordance with that goal.
Terra (LUNA), a multi-sector blockchain protocol, has proposed allocating $139 million to five different DeFi initiatives across Ethereum, Solana, and Polygon in order to expand UST’s use cases.
The plan, on the other hand, must be approved by the Terra community in a vote of governance participants, which will most likely take place at a later date.
The document titled: UST Goes Interchain: Degen Strats Part Three contains the details of how $139 million worth of UST and LUNA will be used on various DeFi platforms.
Terra has chosen a few partner initiatives where it plans to invest up to $50 million to maintain the stability of these protocols, according to the proposal. Terra stated that it hopes to add UST use cases to Ethereum DeFi with this step.
These goals are in line with Terra Founder Do Kwon’s prior remarks, in which he stated that he wants to see UST become a major stablecoin in the crypto industry.
LUNA, the network’s native cryptocurrency, has already made a profit for seven months in a row, despite the crypto market’s growing fears.
The LUNA ecosystem took a huge stride forward in October with the network’s Columbus-5 upgrade, which is a new architecture for keeping stable coins fixed to their fiat value by burning LUNA with the same amount of value whenever UST is created.
Demand has increased as supply has dropped, resulting in a price increase for both the UST stablecoin and the LUNA token.
TerraUSD (UST) is currently ranked fourth among the top stablecoins, having a market worth of $10.44 billion. Terra USD is ahead of Tether USDT ($78.44 billion), USD Coin USDC ($43.2 billion), and Binance USD ($14.4 billion).