Terra Luna proposed a governance discussion to create deep stablecoin and ATOM liquidity on Terra. The offering is in line with Terraform Labs chief executive officer (CEO) Chris Amani’s plan to have the deepest stablecoin liquidity in Cosmos and be the only ecosystem with “sub-sufficient” liquidity for both Cosmos and non-Cosmos blue chip assets. The development sent prices of the altcoin project’s tokens skyrocketing.
Terra announces progress in Deep Stablecoin liquidity
Terraform Labs has submitted a proposal to whitelist USDC-USDT and ATOM-LUNA liquidity pool (LP) tokens to create deep stablecoin and Cosmos token liquidity on Terra. These stablecoins will be whitelisted as Alliance assets from the liquidity protocol Astroport. Additionally, there will be other liquidity pools like TIA-LUNA, DYDX-LUNA and more in the future.
If the proposal is approved following the governance vote, TFL will collaborate with Astroport participants to create a stableswap USDC-USDT pool and an ATOM-LUNA PCL pool before adding Alliance assets. USDC-USDT liquidity pool does not exist yet. Additionally, the current ATOM-LUNA pool is less capital efficient.
What will the offer bring?
The whitelisting of LP tokens from pools containing USDC, USDT and ATOM as alliance assets is an important development. It will help offer better APRs within Cosmos with no DEX swap fees. It will also attract a large user base to Terra. Users will contribute to liquidity for these parities. In addition, they will stake their LP tokens on Station for LUNA rewards. Capital inflow into the Terra and Cosmos ecosystems will provide benefits such as new DeFi applications, transaction volumes, new alliances and low slippage.
Altcoin prices rise in response!
Chris Amani had previously conveyed that they are willing to run the infrastructure of all Blockchains in Cosmos under the Foundation business model and reduce major costs. This will be a game changer for Terra ecosystem tokens. It will also likely bring back utilities and developers. Terra (LUNA) price has increased by approximately 9% in the last 24 hours. The token price is currently trading at $0.7472.
LUNC price skyrocketed 14% with over 250% increase in trading volume. The price is currently trading at $0.000134. Additionally, the altcoin hit a 24-hour high of $0.000138.
Meanwhile, USTC price skyrocketed 36%. The altcoin was trading at $0.0377 at the time of writing. The 24-hour low and high price are $0.0268 and $0.0378 respectively. Trading volume increased by 1150% in the last few hours.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!