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Terra is looking to expand into Ethereum, Polygon and Solana with a $ 139 million DeFi fund

  • Terra plans to inject $ 139 million into Ethereum, Polygon and Solana «to bring incredible UST use cases» to DeFi projects on these chains.
  • UST is the fourth largest stablecoin in the world after Tether, USD Coin, and Binance USD, but is primarily limited to the Terra blockchain.

Terra is now one of the biggest players in the world of decentralized finance (DeFi), and his latest project could make it even bigger. The project proposes to invest approximately $ 140 million to increase its TerraUSD stablecoin presence over its native chain to Ethereum, Solana and Polygon. The proposal could also lead to an explosion in the growth of its native currency LUNA, which has experienced explosive growth over the past year.

Terra, a decentralized stablecoin algorithmic issuer, published the proposal on January 6th. The project issues the LUNA token, a cryptocurrency that, with a market capitalization of $ 25.7 billion, is the tenth largest in the world. It also issues TerraUSD (UST), a stablecoin which, at $ 10.3 billion, is the 20th largest token and the fourth largest stablecoin after Tether, USD Coin, and Binance USD.

Terra has always been as ambitious as ever, aiming to continue to lead DeFi over other chains. While it already has about $ 1.5 billion of liquidity in UST in other chains, it wants to raise this figure even further.

Now that liquidity is in, it’s time to bring incredible UST use cases to Ethereum DeFi through a few initial integrations, as well as special additions to Solana and Polygon.

Terra wants to be king of Defi

Terra plans to expand UST interchain deployment through five projects in Ethereum, Solana and Polygon with a $ 139 million war fund. Deployment will vary between projects, from $ 250,000 to $ 50 million.

In Ethereum, Tokemak will be one of the projects that will receive the UST. The liquidity provider will raise $ 50 million within six months, under the proposal.

Also on Ethereum, Rari Fuse will be among the beneficiaries. Developed by Rari Capital, the platform enables the creation of unlicensed loan and lending pools, bringing in more than $ 1.2 billion in assets to date. He will receive $ 20 million in UST, a move that Terra believes will benefit the stablecoin for a couple of reasons.

“First, it creates an additional use case and a new source of liquidity for UST on Ethereum. Secondly, it creates another way for UST depositors to earn interest on loans. UST can use it quickly within these groups by providing large quantities and being the cheapest stable to borrow, ”the blog post noted.

Convex will benefit from the third Ethereum protocol, receiving $ 18 million in six months.

In Solana, InvictusDAO is the beneficiary. The Olympus DAO fork currently holds $ 50 million in Tether and USD Coin. Terra aims to replace and override the two most stable bases as an option for the DAO exchequer.

Finally, Olympus DAO, deployed on Ethereum, Polygon and Solana will receive 1,425 UST, and the 1 million UST will remain in the DAO exchequer forever, with the 425,000 UST provided as incentives for three months.

According to data from DeFiLlama, Terra is the second largest player in the DeFi space in the world. With total value locked (TVL) now at $ 16.8 billion, it is just behind Ethereum and just behind Binance Smart Chain.

Jean Simmons

Jean Simmons has been a cryptocurrency enthusiast since 2014 and has been dedicated to the topic on a daily basis since she first learned about Bitcoin and blockchain technology. Besides cryptocurrency, Jean studied computer science and worked for two years at a blockchain startup. At Mercayala, he is responsible for technical issues. His goal is to bring cryptocurrencies to the world in a simple and understandable way.

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