Invictus DAO has partnered with Terraform Labs, the creator of the Terra blockchain, to offer UST bonds on their platform.
Solana Gets UST Bonds
Sol Invictus, the protocol behind the decentralized reserve currency built on Solana, are launching UST bonds on their platform. TerraUSD (UST) is the stablecoin native to the Terra blockchain network, which is vying for a place as a top chain.
The announcement was made via a Twitter post on Jan. 11. The Solana-based protocol has entered into this partnership in order to move Invictus DAOs treasury towards high-quality, stable assets and away from stablecoins like Tether (USDT) and USD Coin (USDC), which are highly centralized in nature.
“Invictus has done a great job putting their treasury to work, they have a market cap of $120m and treasury of $70m,” mentioned the forum post from Terra on the 250k UST bonding proposal. “To date, the Invictus treasury owns nearly $50m in USDC/USDT. Invictus, with support from Terra and Frax, plans to introduce UST, UST-IN LP, and FRAX bonds to slowly replace and overtake the USDC/USDT in their treasury. This creates another black hole for UST from which it will never be sold. To show support, this proposal asks the Terra community pool to bond $250k in UST, and Frax Finance will be doing the same.”
Furthermore, the addition of UST to Invictus’s treasury will allow the protocol to take in higher-risk assets in its treasury and expand its reach to key parts of Solana’s DeFi infrastructure. The UST bond offering has already gone live on Jan. 12. Users can acquire UST tokens on Solana by purchasing UST from Jupiter Aggregator or by using Wormhole as a bridge.
What is Terra?
Terra is a decentralized open-source blockchain protocol designed for algorithmic stablecoins. The LUNA token is the native staking asset that powers the Terra ecosystem. The token has risen in prominence massively in the past year and has entered the top 10 cryptocurrency tokens market capitalization. Currently, LUNA ranks 9th in CoinMarketCap’s list with a price of $81.57 and a market cap of $29.58 million.
Find more about Terra here:
Source : solana.news