Public blockchain Terra (LUNA) is shopping for $100 million price of Avalanche (AVAX) tokens to spice up its Terra USD (UST) stablecoin reserves.
Terra says that the settlement between Luna Foundation Guard (LFG), the non-profit group constructed to assist Terra, and the Avalanche Foundation for the over-the-counter sale of AVAX will make the crypto asset the second UST reserve after Bitcoin (BTC).
2/ The @LFG_org’s OTC deal so as to add $100 million of $AVAX to the $UST Reserve makes AVAX the primary main crypto-asset moreover $BTC to be added to the UST Reserve, marking the start of a diversified and non-correlated asset pool supporting the $UST peg.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) April 7, 2022
The deal will enable Avalanche customers to instantly commerce UST for AVAX on-chain. Native functions on the Terra blockchain may also launch native variations on Avalanche.
“The partnership may also present distinct advantages to the Avalanche ecosystem at giant, by connecting the LUNAtics & Terra builders with the colourful Avalanche ecosystem, ushering in an immersive cross-chain expertise.
On the heels of the xAnchor implementation on Avalanche, a number of extra Terra-native DeFi protocols are additionally into account for a cross-chain enlargement to Avalanche, together with some that the LUNAtics are anxiously awaiting ”
The acquisition comes amid Terra’s plan to again its primary stablecoin with a pool of diversified and non-correlated belongings.
“Both the LFG’s inclusion of $100 million of AVAX to the UST Reserve and the $100 million Treasury Swap with TFL exhibit the numerous benefits of mutual collaboration between layer one communities in crypto.
It’s changing into more and more evident that mutual collaboration amongst main ecosystems and communities is the optimum path ahead to positive-sum outcomes in a budding interchain world.”
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