{"id":428380,"date":"2022-04-08T07:36:34","date_gmt":"2022-04-08T04:36:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/terra-buys-200m-in-avax-for-reserves-as-rival-stablecoins-emerge\/"},"modified":"2022-04-08T07:36:34","modified_gmt":"2022-04-08T04:36:34","slug":"terra-buys-200m-in-avax-for-reserves-as-rival-stablecoins-emerge","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/terra-buys-200m-in-avax-for-reserves-as-rival-stablecoins-emerge\/","title":{"rendered":"# Terra buys $200M in AVAX for reserves as rival stablecoins emerge"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a400bbe65f96\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a400bbe65f96\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/terra-buys-200m-in-avax-for-reserves-as-rival-stablecoins-emerge\/#%E2%80%9D_Terra_buys_200M_in_AVAX_for_reserves_as_rival_stablecoins_emerge_%E2%80%9C\" >&#8221; Terra buys $200M in AVAX for reserves as rival stablecoins emerge &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Terra_buys_200M_in_AVAX_for_reserves_as_rival_stablecoins_emerge_%E2%80%9C\"><\/span>&#8221; Terra buys $200M in AVAX for reserves as rival stablecoins emerge &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Terraform Labs (TFL) and the Luna Foundation Guard (LFG) have announced they have purchased a combined $200 million worth of AVAX tokens from the Avalanche Foundation.\u00a0<\/p>\n<p>TFL, the company responsible for the development of the Terra blockchain, sw<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed $100 million worth of Terra\u2019s native token, LUNA for AVAX tokens, in order to \u201cstrategically align ecosystem incentives\u201d, according to Terra\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/terra_money\/status\/1512111686018285582?s=20&amp;t=oKa07ARfw_GzQJcH63dPwA\">twitter<\/a>. <\/p>\n<p>LFG, a non-profit organization mandated to build reserves for Terra\u2019s algorithmic stablecoin UST, used its own holdings of UST to purchase an additional $100 million worth of AVAX from the Avalanche Foundation.<\/p>\n<p>These purchases are meant to reinforce the stability of Terra\u2019s native UST stablecoin, which currently has a market cap of $16.7 billion. <\/p>\n<p>Do Kwon, the founder of Terraform Labs, told Bloomberg that LFG selected AVAX for its UST reserves because of solid growth in the blockchain\u2019s ecosystem as well as the stark loyalty of its users. <\/p>\n<blockquote><p>\u201cAvalanche is still a growing ecosystem \u2014 a lot of it is fueled by loyalty to the AVAX token and users feel a lot of affinity with an asset that aligns itself with AVAX\u2026whereas for the average Ethereum user, aligning yourself with Ether doesn\u2019t really mean that much.\u201d<\/p><\/blockquote>\n<p>As Terra continues to strengthen the position of UST, competitors are looking for new ways to dethrone the stablecoin. Near Protocol (NEAR), a Layer-1 blockchain and competitor to both Ethereum and Terra, is rumored to be releasing a stablecoin called USN, which will reportedly also offer a decentralized finance protocol capable of providing users with a 20% annual percentage yield (APY) on their USN deposits. <\/p>\n<p>This is similar to the Terra ecosystem\u2019s Anchor protocol which currently offers users a 19.49% APY on UST deposits. <\/p>\n<p>In a Substack <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/captainkole.substack.com\/p\/the-future-is-near?s=r\">post<\/a> detailing what he understands of the plans, Crypto Insiders Telegram group founder Zoran Kole argued that Near protocol was superior to both Etheruem and Terra, offering data from Electric Capital that outlined Near Protocol\u2019s substantial growth in terms of development. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/7884034d-5d21-4553-880c-beba27d6d3b1.jpeg\"><figcaption style=\"text-align: center;\">Source: Zoran Kole<\/figcaption><\/figure>\n<p>Kole concluded that Near\u2019s network growth combined with its soon-to-be-released USN stablecoin and subsequent DeFi protocols could eventually allow for Near Protocol with an $11.7 billion market cap to catch up to and eventually eclipse Terra, which has a market cap of $37.2 billion. <\/p>\n<blockquote><p>\u201cThis will lead to a comparison of Near to Terra ($LUNA) as the narrative for attractive stablecoin yields proliferates.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/terra-buys-200m-in-avax-for-reserves-as-rival-stablecoins-emerge\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Terra buys $200M in AVAX for reserves as rival stablecoins emerge &#8220; Terraform Labs (TFL) and the Luna Foundation Guard (LFG) have announced they have purchased a combined $200 million worth of AVAX tokens from the Avalanche Foundation.\u00a0 TFL, the company responsible for the development of the Terra blockchain, swapped $100 million worth of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":428381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvZDg3NDk3MzctYjVkMS00ZGUyLWEzMGQtZTllODQ4OWEwYzg5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,127130,75493,122378,74355],"class_list":["post-428380","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-near-protocol","tag-stablecoin","tag-terra","tag-adoption"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/428380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=428380"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/428380\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/428381"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=428380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=428380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=428380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}