terra native token of the ecosystem LUNAreached its all-time high (ATH) earlier this week. The latest price discovery on LUNA wasn’t behind the larger market moves, but alongside the platform’s recently proposed ecosystem-centric updates.
Earlier today, TerraForm Labsproposed to increase the visibility of stablecoin UST on Tier-1 platforms hosting popular DeFi protocols.
In a statement on Twitter:
“TerraForm Labs incentivizes approximately $3 million in LUNA liquidity mining over three months from the “community pool” for UST pools in leading DeFi applications/protocols in various main tiers.” While the lyrics were included, the addition came later.
“The goal is to deepen UST liquidity in strategically important pools that serve as hubs of DeFi activity for users on these chains.”
It was also stated in the proposal that the company aims to create a benchmark for “things” that it sees as effective liquidity mining incentives in “size, length and scope”.
The shared proposal also stated that this baseline is also planned to be used to expand the program if implementation proves effective after re-evaluation within three months.
Yet it can be seen that the ultimate goal of this proposal is to “deepen UST liquidity in strategically important pools that serve as hubs of DeFi activity for users in this chain.”
The purpose of the proposal was stated in the proposal as follows:
“Cross-chain bridges continue to gain momentum and establishing UST a viable and liquid base pair across various pools is critical to solidifying UST’s position as a leading stablecoin.”
However, this proposal will first need to be voted on by management and will only be implemented after community approval.
Earlier this week, the Terra community accepted an offer to burn approximately 88.7 million LUNA tokens, worth approximately $4.5 billion at current prices, and mint approximately 4-5 million UST. The incineration is scheduled to occur within the next two weeks and is claimed to be one of the largest ever to occur on the main Tier-1 platform.
This development boost came amid a legal battle between TerraForm and the United States Securities and Exchange Commission (SEC). SEChad publicly subpoenaed Terra executives, after which Terra continued to sue the regulator for the move.
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