The Terra phenomenon continues to grow and integrates its TerraUSD stablecoin (UST) into the NEAR and Aurora platforms. NEAR native token gains value
UST stablecoin on the rise
The blockchain Near announced via a tweet that the Terra blockchain stablecoin, UST, will now be integrated into its network.
@terra_money is partnering with @NEARProtocol and @auroraisnear!
This integration is made possible through a partnership with leading protocols @NearPad and @RoseOnAurora
Users can bridge from Terra to Aurora via @Allbridge_io
Learn more https://t.co/jwHK1jqECy
– NEAR Protocol (@NEARProtocol) December 21, 2021
This was made possible by a successful partnership between blockchain Terra and decentralised finance (DeFi) tools NearPad and Rose.
NearPad, the NEAR incubator, will allow users of its platform to trade assets and provide liquidity on UST peers via a pooling system.
Specifically, both it and Rose will offer users the opportunity to deposit cash in the form of USTs which will then be accessible to their entire community.
Aiden Knox, the founder of NearPad and Rose, said:
Users will be able to bridge USTs from Terra to Aurora from the Allbridge exchange platform.
Project stakeholders
- Terra, a blockchain specialised in the creation of decentralised stablecoins, based on the Cosmos SDK system. Its token is LUNA, which acts as collateral and a token that can be staked to ensure the platform’s proof-of-stake (POS) method.
- Near is a blockchain designed to be as fast and secure as possible, using sharding technology to avoid scalability issues. It is the originator of Nightshade, a mechanism that allows it to ensure the stability of a very high number of applications simultaneously (details of how it works on their Medium blog).
- NearPad is the launchpad and incubator for DeFi projects of the Near blockchain. Participants must stake PAD tokens in order to have access to the platform’s IDOs.
- Rose is a platform offering liquidity pools and an exchange service for stablecoins or wrapped tokens. It is the first project to come out of NearPad.
- Aurora is a platform to help Ethereum blockchain (ETH) users and decentralised applications (dApps) to interact with the Near blockchain. It also allows its users to access NEAR smart contracts and move ERC-20 tokens between Ethereum, NEAR and Aurora via its Rainbow Bridge.
What’s the economic impact?
Following this announcement, the NEAR token took off and eventually reached its ATH (All-Time High) of $16.33 on December 27.
NEAR one week price (Source: TradingView, NEAR/USDT)
Terra blockchain saw its stablecoin UST overtake DAI in terms of market capitalisation, placing it in 4th place.
Stablecoin Ranking by Market Cap (Source: CoinGecko)
Most recently, Terra’s total locked-in value (TVL) reached $21 billion, surpassing Binance’s (BSC) $17 billion and moving it into second place just behind Ethereum (ETH).
Blockchain ranking by TVL (Source: DefiLlama)
The Terra blockchain and its token Luna are now one of the main opponents of the Ethereum blockchain (ETH), which has been struggling to attract new people for some time, notably because of its extremely high transaction fees.
Its association with the NEAR blockchain promises to provide additional insurance for some time.
