Terra Expands Stablecoin Reserve by Purchasing $100m worth of Avalanche Tokens
The Luna Foundation Guard (“LFG”), primarily focused on the Terra blockchain, expands its TerraUSD (“UST”) stablecoin reserve by purchasing $100 million worth of Avalanche tokens.
The native token of the Avalanche blockchain becomes the second-largest asset in the UST reserve after the Bitcoin token.
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems, which includes TerraUSD (“UST”) – the flagship stablecoin of the Terra network and the leading decentralized stablecoin in DeFi by market cap
Terra’s UST stablecoin, backed by bitcoin tokens, could eventually reach $10 billion, the company said. To strengthen the ability of Terra’s UST stablecoin to be pegged to U.S. dollar fiat, the company added $230 million in bitcoin on Wednesday, following an injection of more than $1 billion in bitcoin in January.
Emin Gün Sirer, CEO of The Ava Labs said that:
“Terra’s ability to scale their stablecoins is one of the reasons that drew Avalanche to its platform.”
Do Kwon, the founder of Terraform Labs, the blockchain startup in charge of the Terra blockchain and LUNA coin, said Bitcoin will remain the "primary backer" for the UST stablecoin, but the deal with Avalanche "buys Avalanche's UST and Terra a lot of user familiarity.”
As reported by blockchain.News on December 9, 2021, one of Asia's biggest Venture Capital firms, Chiron Partners, has launched a $50 million ecosystem fund christened the Chiron Terra Fund I (CTI), aimed at supporting innovative projects that are emerging from the Terra blockchain ecosystem.
Image source: Shutterstock
Meta Plans to Introduce Virtual Tokens: FT