There is no bridge between terra and solana at the moment. The solana team is currently working on their wormhole bridge that will allow tokens to transfer between solana and terra. So without this bridge you can’t get ust onto solana.
Definitely a great step. Is there any other UST demand that would be present during this LP on solana? Just wondering if LP rewards would be the only driver… I’ve see some serious issues occur with amplified pools when there isn’t enough demand across the stable pairs. With large enough pools the imbalance can take a while to show up, just trying to walk through the dynamics at play that could cause such an imbalance or other edge cases. Overall this proposal sounds great and so does the team that’s executing.
1 Like
What do you think about saber protocol? They just launched their usdc-ust pool. This is eth wrapped ust but they plan on switching to ust directly from terra when the Wormhole is open.
Their usdc-ust pool already has 100K liquidity. This is without funds from the community pool as incentives.
The after the incentive funds for mericurial dry up, I imagine the demand for UST on solana will as well. There will need to be additional projects on solana that use UST for it to stick but this will be a good start.
Here is the medium post for saber launching UST for anyone that wants to read more.
3 Likes
Wow. Saber looks cool!
Great points! You clearly have a lot of insight on this topic. Based on our past experience observing adoption and working on stable/pegged coins (I was in the founding team of WBTC), 3 things needs to go hand in hand - liquidity, utility and education.
Liquidity is the easiest to bootstrap, so I believe this is the right place to start, while LM will incentivize people to start learning about the underlying currency and project before putting capital into the pool. As for utility, UST needs to be integrated into more defi platforms like lending, etc, which requires users and platform providers to have a certain level of comfort.
There is a certain “lindy effect” for stablecoins, where acceptance is related to how long something has been around for. This is why having sufficient liquidity, a base of users comfortable with it, and getting started a bit earlier is important.
As for the risk of having very large pools without underlying demand, we cannot agree more! That is why this 8 week pilot will incentivise a pool of about 10M - 15M, which is a reasonable size to get started with. After that, we can all look at demand and other factors to gauge next steps.
7 Likes
This all sounds good to me, i’m curious - when Mercurial tokenizes and has a TGE would you consider a pool on Pylon to help reinforce the Solana - Terra relationship? Could have a wrapped version on your token on loop finance etc too
1 Like
You will have my vote. I see the potential reward of greater widespread adoption of UST across other chains (especially Solana), to greatly outweigh any risks of providing LUNA from the community pool to fund LM incentives.
2 Likes
Hi Jeff,
I think this is an excellent initiative, low downside (cost: 24,000 LUNA), very high upside (possibility of entrenching UST as a core stablecoin on Solana). Love the iterative approach as well.
Some questions I have:
- Curve’s 3pool total returns are split into a) trading fees and b) incentives (in the form of CRV and other tokens). Would the 20% yield be solely on b)? i.e. LPs will be getting trading fees and a 20% yield on top of that?
- What would be the denomination of token rewards be in? LUNA? UST? MER?
UST liquidity in stable pools are one piece of the puzzle for promoting UST on any blockchain. The next step would be to find use cases for UST i.e. integrating them in AMMs (Raydium), money markets (Oxygen). Are there any plans for incentivising these once we have a liquid pool on Mercurial?
Thanks.
2 Likes
A great proposal. I’m a big believer of Solana and Terra and would like to further support UST usage on solana.
2 Likes
Sounds good to me.
Disclaimer: Delphi Ventures is an investor in both Mercurial Finance and Luna
We are FOR this proposal
It’s important for both Terra and for the crypto space more generally that UST becomes the dominant cross-chain stablecoin. We consider Solana a massive opportunity and there’s no reason it should repeat the mistakes of Ethereum in terms of being dominated by centralised stablecoins. It’s important that $UST establishes itself as a leader early on and this proposal is a great start.
8 Likes
Seems like a no brainer! Make it so!
Huge +1.
LFG
1 Like
the community fund is pretty massive and looking for uses, this seems like a more than serious project and more than worth the risk. I will be voting yes 
1 Like
DeFi Alliance is supportive of this proposal.
2 Likes
Good questions.
- The way this pilot is structured is for b. We can adjust given how the pilot progresses and the response from users /our community
- I think will be a combination of LUNA / MER. IMO it’s a bit weird to be providing UST rewards for a UST pool
- 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
1 Like
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?
1 Like
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