Bringing Terra stablecoins to Solana

Good questions.

  1. The way this pilot is structured is for b. We can adjust given how the pilot progresses and the response from users /our community
  2. I think will be a combination of LUNA / MER. IMO it’s a bit weird to be providing UST rewards for a UST pool
  3. We are talking to a few other teams about incentive structures. But large incentive plans will generally go through a governance vote on Agora. Community and LUNA stakers should be the ultimate decision-makers, not TFL
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Individual investor here. Super hot on both Terra and Solana so this is pretty much a dream come true.

Fantasy aside, stableswaps are important to DeFi, and so is a decentralized stablecoin.

Leveraging Solana’s performance should lead to some interesting ideas with stables, and I think UST is definitely the way to go.

Wholly in support! Where do I vote?

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Cool. Thanks for your response.

on 2), I included UST as an option because yield given out in non-stable tokens (LUNA/MER) will result in deviation from the expected 20%, unless the team is thinking of dynamic reward adjustments based on token price. Or is the intention to offer 20% as a starting point, based on current prices, and iterate from there?

Would love your thoughts on that.

By far, the most commonly used stablecoin right now is USDC. The reason why the pilot will fail is that the users will not take up UST as one of the main stable assets. Obviously a very big part of this pilot will be us pushing not just liquidity, but also education and adoption.

Thanks a lot! Yes, the Terra team, @jose_delphi and others have been of tremendous help, and we are very grateful to be collaborating with them

@Vic: Yes, it will be the latter! It gets very complex to try to do dynamic reward adjustments. If this proposal, we will incentivise a pool based on 10% MER / 10% LUNA for a 10M pool. As the pool grows, and the price of the assets fluctuate, the APR will change as well. If there is agreement that we want to incentivise a bigger pool, we can do one more proposal. As Jeff mentioned, we think this amount is a good starting point for a pilot.

@thelawenforcer We will make good use of the LUNA! I think one of the objectives will be to have more Solanians earn the LUNA, and therefore be interested to learn about it. We will definitely design more marketing campaigns to complement the launch of the pool.

To everyone else who voiced your support, thanks you so much, it means a lot to us! We will work with the Terra team and community to execute it in a way that works the best for $UST education and adoption.

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@meowisms @jkuan great topic and like where this is going. Some hard questions though.

My same thoughts, please explain why not partner with Saber or the benefits here. Really the end goal in my is to get UST to SRM and RAY.

I know it’s not standard but nor is taking funds from a separate community to fund rewards for another community that typically gets funded from the token community pool itself that created the protocol. I think paying rewards in UST is definitely something to consider. When you say a combination of both Luna and MER you mean the pool will pay rewards in both? Perhaps if UST is out consider Luna since that’s what’s funding the rewards and the community that is acting to bolster.

Lastly, why go through the ETH wormhole with gas fees etc?


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  1. We’re talking with Saber as well re: doing a LM pilot. We’re open to working with most partners, the goal is to grow the ecosystem, not be tribal!
  2. the LUNA in the community pool is earmarked specifically for community initiatives, which I feel like this qualifies for. It’s also a slightly special circumstance in that Mercurial has offered to make UST part of the 3pool. This will be the first large-scale LM program that we’ve done and used LUNA for
  3. Open to other suggestions for bridges. Any ideas?

@meowisms @jkuan Are the funds from this proposal continued to be owned by Terra community? when will the profits + funds be returned? Are they returned to the community fund?

@jkuan what do you think about using the funds to fund a USDC/UST swap on an already established and most used DEX on Solana? Raydium for example is in desperate need of a USDC/UST swap liquidity pool. Why not bet on the DEX that is already popular to garner more attention?

Aside did you also notice the large group of new accounts whole-heartedly promoting this without bringing anything to the discussion?

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In general, Raydium is a not a stable swap, so people will get massive slippage…

edit: Forgot to mention, Raydium is going to launch Bonsai soon (the cooperation with Sushi), so it will be hard to get attention competing there

I’m a investor in both Terra and Solana. I’ve been following the two stableswaps on Solana (Mercurial and Saber) very closely, and it seems that Saber is just launching features faster than any other project on Solana. Saber just launched LM a couple of days ago, and they already have over $83mm in TVL. There’s also $6mm in their UST pool. I think it makes sense to prioritize Saber, since it seems like they have a lot of competitors of other algo stablecoins.

1 Like is so successful that Alameda built Serum deprecated their swap function and just gave it all to Raydium. I doubt that it is not a stable swap.

To clarify:
“It is not a stable swap” as in Raydium uses the typical AMM bonding curve x*y=k which is sub-optimal for stable assets (like UST-USDC or renLUNA-wLUNA) as it results in a lot of slippage and high fees for the user

More specialized AMM - like Curve on Ethereum or Mercurial & saber on Solana - use bonded curves (fancy math stuff) that improve on the above. But they offer only stable/pegged assets, so it’s hard to compare to Raydium

Comparing Mercurial and saber (just by purely looking at what is published - and there is not much published on saber), Mercurial seems to be focussing on very few USD-denominated stable-swaps, while saber aims to provide a broad range of stable assets. IMO none of the approaches is better per se, given that the focussed approach allows for better vault strategies in the future, while naturally lacking TVL metrics


There are a lot of great comments here regarding Saber, Raydium, and adoption, and wanted to share a couple of quick points:

  • From Mercurial POV, the more adoption of UST the better. We have been encouraging all our partners to adopt UST as one of the key collaterals, particularly those working on lending platforms.
  • LM is a great tool to leverage for bootstrapping awareness and interest, and we definitely encourage the Terra community to work with a wide variety of projects!
  • There is quite a lot of overlap functionality between the different solana projects (given the nascent space), but the focuses are quite different and will diverge over time. On our end, we are working on a few important features that we are really excited to roll out soon!

All in all, it is great how supportive and well-researched this community is, and we hope to collaborate more and help UST get even more traction on Solana.

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I believe the Saber proposal is the better one out of the two. We should prioritize the Saber grant.

Neither Luna or UST is even supported on Mercurial.

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Hi everyone, it has been a blast working with the Terra community and fellow LUNAtics so far!

A lot have happened in the last 2 week, and we have worked on a large number of items since, including growing a significant UST 3pool, driving education, awareness and adoption for $UST.

We have posted an update here, do take a read!

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I think this is a great idea to elevate the utility and distribution of UST. Excellent proposal @jkuan !

Hey all - looks like this is included in Proposal 143 - UST Liquidity Mining Incentives

Aims at expanding UST across networks, including Solana. The pools and protocols are as follows:


Pool Details:

  • UST (Wormhole)/USDT


Pool Details:

  • UST 3-Pool (Wormhole UST, USDT, USDC)


Pool Details:

  • UST (Wormhole)/USDC

Hope this is helpful. This proposal is live for voting, be sure to vote here: Terra Station

If these position has being growing all through the process from last year…UST and Luna won’t be were we are today… however the occasion after his interview was a grand “kharma” move by the universe on Do Kwon…,a test you must rise above and overcome…I believe it is in the nature and structure of Terra…