Home Altcoins News Terra LUNA UST Viable and Liquid Base Pair in Diverse Pools

Terra LUNA UST Viable and Liquid Base Pair in Diverse Pools

Terra LUNA UST Viable and Liquid Base Pair in Diverse Pools

The new proposal by TFL intends to establish a reference template for how TFL considers effective LM incentives in size, length, and scope.

Terra UST expressed:  A new proposal by TFL is posted on Agora.  TFL is requesting roughly $3 million in LUNA liquidity mining incentives from the Community Pool over 3 months for UST pools across leading DeFi apps/protocols on various major layer ones.

The goal is to deepen UST liquidity in strategically important pools that serve as hubs of DeFi activity for users on these chains. This proposal is also intended to establish a reference template for how TFL considers effective LM incentives in size, length, and scope.

In a highly competitive crypto market for capturing specific users as long-term proponents and users of Terra, LM incentives denominated in a highly attractive asset to hold, LUNA, stimulate the growth of UST at a strategically important time.

Cross-chain bridges are gaining traction and establishing UST as a viable and liquid base pair in diverse pools is critical for ossifying UST’s position as a leading stable coin.

The plan for each app/protocol in the proposal is defined via a 3-month LM incentive period denominated in LUNA, with matching incentives from target projects in their native asset incentives to promote augmented UST liquidity.

The program, if it successfully passes governance voting, will be re-evaluated after 3 months and a decision on how to adjust incentives will be made.

We encourage the LUNAtic community to more actively engage in the discussion, proposal, and execution of similar LM incentive programs from the Community Pool where effective — using this proposal as a baseline reference for future initiatives.

For clarity, as a key growth metric for Terra, the outstanding supply and growth rate of UST is an important barometer that provides for the health of the Terra economy at large. The progressively larger and more rapid expansion of the demand for UST leads to net positive effects across the Terra ecosystem induced by accelerating seigniorage, value accrual to network stakeholders, and protection against contractionary cycles.

This is important because, in a highly competitive crypto market for capturing specific users as long-term proponents and users of Terra, LM incentives which are denominated in a highly attractive asset to hold, LUNA, eventually contribute to the stimulate the growth of UST at a strategically important time.

It is very obvious that cross-chain bridges are gaining traction and establishing UST as a viable and liquid base pair in diverse pools is critical for ossifying UST’s position as a leading stable coin.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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