Decentralized stablecoin issuer Terra has made a proposal to expand the federated implementation of its stablecoin TerraUSD (UST). Namely in five projects on Ethereum, Polygon and Solana. Terra will provide more than $139 million in UST and LUNA to DeFi projects for at least the next six months. Such strategies will help the ecosystem expand its route in the stablecoin domain. This is the latest initiative to support this cause.
Take advantage of the space to grow
The Luna Defenders Foundation (LFG), a non-profit organization based in Singapore, announced today’s mission formation and goals. It aims to support and sustain the growth and development of open source technology, facilitating the realization of a decentralized economy.
1/ The first step towards {REDACTED} is now complete.
Introducing the formation of the Luna Foundation Guard (LFG).https://t.co/oqke82OUB2 pic.twitter.com/QKGwrhmtMH
– Terra (UST) Powered by LUNA (@terra_money) January 20, 2022
This initiative focuses on the aspects critical to mainstream growth in this fast-paced industry. “The core mission of the LFG is to strengthen the stability of the UST peg and promote the growth of the Terra ecosystem,” the blog post added. Meanwhile, the executives added:
4/LFG will prioritize DeFi projects that pioneer the emergence of decentralized money at the base layer of the emerging DeFi technology stack.
Of particular concern is the stability and sustainability of Terra’s flagship stablecoin – TerraUSD (UST).
– Terra (UST) Powered by LUNA (@terra_money) January 20, 2022
LUNA Foundation Guard has secured an initial gift allocation of 50 million LUNA tokens coming from Terraform Labs. Follow topic, ‘transaction hash will be made publicly available once implemented in the coming days for transparency.’
Said by Kwon, Co-Founder and CEO of Terraform Labs, “LFG has a mission to continuously support the fixed stability of Terra stablecoins and grow the ecosystem supported by builders the best of Terra, providing a new avenue for the growth and sustainability of decentralized money,” said Do Kwon, Co-Founder and CEO of Terraform Labs.
“A decentralized economy needs decentralized money, and LFG provides another resource to achieve that goal.”
LFG operations will be overseen by the International Council and will continue to add new builders to the Terra Ecosystem. One of the core members, Nicholas Platias, the founder of Chronos Finance asserts:
“The LFG’s mission is to reshape how the industry views algorithmically stable coins and their long-term sustainability. LFG provides another leverage to close the demand loop for Terra stablecoins, build a vibrant economy around their use on Web 3 applications, and provide stronger peg protection in time fluctuations. ”
At the time of writing, LFG is finalizing its funding framework. Will be released to the public in the coming weeks. ‘The formation of the LFG sets the stage for the LFG to be announced now that the LFG is ready to begin its mission,’ the post concluded.
Winner has it all
UST is the leading decentralized stablecoin on the market and is fourth behind Tether, USDC, and BUSD. Well, at least for now. Not too long ago, it crossed US$10 billion in market capitalization– at press time, that number was close to $11 billion in circulation.