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LUNA, the service cryptocurrency of the Terra platform, was remembered by investors this week for almost daily record updates of historical highs. Saturday was no exception, the token rose by 7% against the backdrop of a general decline in digital currencies.
The algorithmic stablecoin UST is the main growth driver for LUNA, which acts as collateral for issuing this coin and adjusting its peg to the dollar.
Terra developers have once again found a way to attract the attention of investors to their stablecoin, initiating its distribution on four blockchains. The new project uses the FRAX protocol and the Curve Finance protocol.
By joint agreement of the parties, UST will become one of the 4 stablecoins included in the 4pool liquidity pool, the main task of which will be the exchange of UST, FRAX, USDC and USDT on 4 types of blockchain.
Curve Finance provides traders with liquidity and non-slip conversion of the above stablecoins on any of the networks: Ethereum, Terra, Arbitrum and Fantom.
The founders of FRAX and Terra will enter into a cartel agreement in order to “push through” the voting, the opening of Curve Finance smart contracts in all of the listed networks. Together, they will put 3.65 million CVX to the vote, which will allow them to dominate the issue of channeling liquidity to 4pool.
UST will become one of FRAX’s collateral assets, whose fractional algorithm allows for the issuance of a stablecoin backed by 50% of another stablecoin and its own utility token. Both projects will also make 4pool the industry’s “gold standard” of returns across all chains.
The status of an interchain asset will increase the demand for UST, the increase in the emission of which will entail an even greater blocking of LUNA. The mechanism of the protocol burns locked coins, creating a deficit that stimulates the growth of the token price.
#Terra #cryptocurrency #growing
