Terraform Labs and Luna Foundation Guard have acquired $200 million in AVAX tokens from Avalanche Foundation for UST stablecoin reserves.
The Terra developer swapped $100 million in LUNA for AVAX tokens, while LFG used its stake in UST to buy $100 million in AVAX.
The founder and CEO of Terraform Labs, Do Kwon, adds that the choice of AVAX tokens was due to its consistent growth in the blockchain space and popularity.
The asset acquisition is expected to strengthen Terra’s stablecoin UST, with a market capitalization of more than $16 billion.
The announcements coincide with reports that Near Protocol is planning to launch a stablecoin dubbed USN and a DeFi protocol where users can earn yield from their deposits.
Crypto Insider founder, Zoran Kole,says that Near Protocol remains extensive compared to Terra and Ethereum, projecting that its market capitalization could surpass Terra.
1/ Thrilled to reveal the blossoming collaboration between @avalancheavax and Terra will also be further solidified with a $100 million Treasury Swap between TFL and the Avalanche Foundation of $LUNA <> $AVAX to strategically align ecosystem incentives!https://t.co/z9A86CWZDs— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) April 7, 2022