Stablecoins: Terra(UST) reveals liquidity plans; USD Coin(USDC), Tether(USDT) have a lot going on

While Tether [USDT] and USD Coin [USDC] are thought to be the go-to stablecoins in the crypto ecosystem, another coin wants to get to the top.

On 30 November, the official account for TerraUSD [UST] tweeted about a proposal to amp up the stablecoin’s liquidity on Ethereum, using a six month long plan.

In the official document, a user by the name of “ezaan” wrote,

“The ultimate goal is to have UST become the go-to interchain stablecoin.”

They added,

“This process begins with deep UST liquidity on Curve Finance, Ethereum’s preferred AMM for stableswaps, and continues with finding the best use cases for UST on Ethereum like OlympusDAO, Rari Fuse pools, Convex Finance, and Tokemak to just name a few.”

Using DeFi protocols, the idea is to swap millions of dollars’ worth of UST to LUNA for incentives, or use the UST to farm CVX and CRV for a community pool.

It’s important to note that some major players have been named here.

At press time, according to Defi Llama, Curve [CRV] held $21.38 billion in total value locked [TVL], while Convex Finance [CVX] held $16.13 billion. This made them the biggest and third biggest DeFi protocols by TVL.

On shaky ground
At press time, UST had a market cap ranking of 29, while USDC and USDT were both in the top ten list. However, the two bigger stablecoins haven’t had an easy time of it so far. A few months earlier, USDC issuer Circle admitted that it was being investigated by the U.S SEC and that it was “cooperating fully.”

On the other hand, Tether has its own problems. The stablecoin, despite its focus on compliance, recently came under scrutiny after minting billions of USDT. While a Tether official clarified these were for chain swaps, there was still a lot of FUD.

Bigger fish to fry
In essence, Tether’s past legal tangles have made crypto watchers skittish, and even USDT movements can rock the boat.

Adding to the frenzy, crypto influencer Mr. Whale launched a $3 million bounty to learn more about Tether’s backing. Despite the stablecoin’s popularity, whether or not USDT is fully backed by dollars has been a long standing question in the crypto sector.

If UST rises to the top, it will need to know how to answer many of these same doubts.

--

--

--

forex and cryptocurrency expert trader; telegram- https://t.me/jamilapatersonofficial

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

I would cherish your help and feedback as we grow Bailey’s Building & Loans.

See The VALT Metaverse Inside The RFOX Ecosystem

Decentralized Autonomous Organization (DAO): What’s Next? A Look at

Bitcoin Teller Machine

ABOUT MATRIX INDEX

Anoma Research and Development Update: January 2022

GetBlock Records: December 2020

Crypto Currency Exchanges

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
jamilapatersonofficial

jamilapatersonofficial

forex and cryptocurrency expert trader; telegram- https://t.me/jamilapatersonofficial

More from Medium

How far might the ‘Ethereum-killer’ tag go to benefit retail SOL buyers in 2022

What Is Aave’s Future, And Why Does It Matter?

What Is Aave's Future, And Why Does It Matter?

$12 Million BTC Raised To Help Ukraine

$12 Million BTC Raised To Help Ukraine

Terra Classic Makes Over $530 million Influx In Four Days