Disclaimer: I am a member of the TFL team.
A key growth metric for Terra’s ecosystem is the market cap of our stablecoins. Increased stablecoin utility and distribution makes our stablecoins less fragile, our ecosystem stronger, and ultimately accrues value back to LUNA.
The ecosystem on the Terra blockchain is growing rapidly. This is one piece of the puzzle.
The other piece is growing Terra stablecoin utility outwards onto other Layer 1’s. We’ve been waiting for Wormhole to go live so that we can port our assets over to Solana, but given the budding ecosystem, we don’t want $UST to be left behind.
We are in contact with the Mercurial Finance team (https://mercurial.finance/), which is building a Curve-like product on Solana, to add $UST as a base asset in the 3pool with USDT and USDC (replacing DAI’s role on Curve). This will be done by porting over UST from the ETH → SOL Wormhole bridge.
We’ve gotten to know the Mercurial team over the last few months, and we believe strongly in the team and their vision. They’ve raised over $10M, and have broad institutional and retail support:
We believe that Mercurial will spearhead stablecoin growth in the Solana ecosystem, and we want to join them on this journey.
Here are the details:
- The Mercurial team would like to launch a 8-week pilot for UST in the 3pool.
- We are requesting $167,000 worth of LUNA (roughly 24,000 LUNA at current prices) from the community pool to fund liquidity mining (LM) incentives for the pilot.
- All incentives provided by TFL will be matched by the Mercurial team.
- To provide competitive incentives, we are targeting a 20% yield on a $10M base pool, split 50/50 between Mercurial and Terra.
- This equates to $1m in annualized incentives, or $83,333/month, or $166,666 for 8 weeks.
- After the pilot period is over, we will survey the community for feedback. If positive, we will crystalize a longer-term relationship.
- We will vote on LUNA LM distributions quarterly to give us flexibility to adjust rewards based on factors like pool size, user demand, etc.