Bring better utility and liquidity to UST outside of the Terra ecosystem, further cementing it as a cross-chain stablecoin.
As i said on my last post about weaknesses of Terra LUNA and UST. HERE
Terra needs to do something to somewhat making high demand for UST... and here the solution
and still goin on~
another proposal from the community to seeding popular and innovative lending pools. The LUNATics is uniquely positioned to help with this expansion since UST can be lent out to kickstart borrowing demand and utility in these money markets, earn yield, and eventually return the funds back while leaving permanent distribution channels for further UST growth.
"As early supporters of these new projects, we most likely will also get rewarded with governance tokens and interest payments." -LUNAtics
Seeding lending pools with enough capital allows lovely affects:
- UST is positioned to become the cheapest asset to borrow in these money markets, a spicy proposition for those to choose UST over 3CRV
- Creates a new healthy yield source for UST lenders once these markets are established enough to no longer require the community pool’s involvement
- Sparks a cyclical effect - UST being borrowed raises lending yield, rising lending yield leads to more depositors, and more deposits make UST more attractive and liquid to borrow.
XYZ Market (Avalanche, Fantom, Polygon)
LUNAtics would seed $10M UST into Market pools on Polygon, Fantom, and Avalanche for six months. At six months, or earlier if the community decides, funds and their yield can be withdrawn or extended. On Fantom, the Terra Community should seed the SpookySwap pool along with creating its own pool for borrowing against Terra-related Beefy Finance LP Positions. On Polygon and Avalanche, deposits should be made in the pools recommended by the Market team. Similar to Fuse, this creates an alternative way for UST depositors to earn interest on lending and allows better utilization of LP positions.
Total Funds: 30M UST
Themis (Ethereum)
Themis is a new project launching on Ethereum that created the first-ever money market for borrowing stables against UniV3 NFT positions - one can collateralize and degenerate leverage their LP positions. Themis plans to treat UST, FRAX, and MIM as first class riders over 3CRV stables.
This means UniV3 LP positions that contain UST, FRAX, or MIM will be whitelisted as collateral first and be prioritized through rewards.
Total Funds: 10M UST
Always DYOR with your investment thanks!
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