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 Basis Guard (LFG), the non-profit group constructed to help Terra, and the Avalanche Basis 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 in addition to $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 partnership can even 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 consideration 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 fundamental stablecoin with a pool of diversified and non-correlated belongings.
“Each 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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