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Blockchain organization Terra has decided to invest over $ 140 million in UST and LUNA cryptocurrencies in a number of large decentralized finance (DeFi) projects based on Ethereum, Solana and Polygon. The support program is designed for the next 6 months. The decision on further investments will be made later.
Terra’s management assured that this decision was initiated in connection with the desire to expand inter-network cooperation and contribute to the deployment of the UST stablecoin in DeFi projects on other blockchains.
According to the firm’s plans, several startups will receive grants of up to $ 50 million. Terra executives believe that this will provide an opportunity to increase the stability of partner projects and allow Ethereum users to take advantage of the UST stablecoin.
The agreement was concluded with the liquidity provider Tokemak, which will add $ 50 million to the treasury in UST. Terra partners with Rari Fuse borrowing and lending platform and Convex Finance yield aggregator. They will receive $ 20 million and $ 18 million, respectively. Other organizations included the decentralized protocol OlympusDAO (OHM) and a fork of this project called InvictusDAO (IN), as well as Frax Finance (FRAX).
According to the founders of Terra, the stablecoin UST will soon help these startups to cope with the pressing problems associated with the structure of their treasury. The founders of DeFi projects are going to resort to this solution, since they do not want to increase the amount of USD Coin (USDC) and Tether (USDT) in their vaults, due to the risks of centralization.
Terra founder Do Kwon reiterated that UST is committed to dominating its industry and surpassing competing US dollar-backed coins.
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