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Capncook proposed listing UST (TerraUSD) on the Polygon market to foster cross-chain adoption and boost Aave's usage on Polygon, a move that received widespread community support. The integration is expected to expand the range of stablecoins on Polygon, increase Aave's usage, and promote UST's cross-chain adoption, while suggestions for a cautious approach with supply and borrow caps were also made.
The discussion primarily revolved around the proposal by Capncook, a leading figure in DeFi at Polygon, to list UST (TerraUSD) as an asset on the Polygon market1. UST, an algorithmic stablecoin issued by Terraform Labs, boasts a market cap of over $15.1 billion. The proposal's main objective is to foster the cross-chain adoption of UST and boost Aave's usage on Polygon. Currently, DAI, USDC, and USDT make up 30% of Polygon Aave's Total Value Locked (TVL). The addition of UST could potentially broaden the range of stablecoins available on Polygon and extend UST's use cases.
UST's presence on major Ethereum dApps and its impressive 24-hour volume of over $472M suggest a strong demand for borrowing and lending on Polygon. Terra is transitioning from its centrally held Shuttle Bridge to Wormhole’s more decentralized bridge, a move that mitigates risks associated with centralization and promotes greater cross-chain access. Tokens deployed on Polygon's Proof of Stake (PoS) have seen benefits such as user base growth and increased user activity. For instance, Aave saw a tenfold increase in active users on Polygon PoS compared to Ethereum L1, with user activity reaching a high of ~16x more compared to L11.
The proposal received widespread support from community members. Defiiiiii endorsed the integration of Terra and Polygon, viewing it as a significant development2. MarcZeller backed the idea of more synergies between the UST ecosystem and Aave, but suggested a cautious approach, proposing an isolation mode onboarding of UST with supply and borrow caps3. CryptoDegen49 also agreed with the proposal, lauding UST as a fantastic, decentralized asset that aligns with the values of crypto4.
In conclusion, the proposal to list UST on the Polygon market was met with positive responses, with community members expressing their support and offering suggestions for a cautious approach. The move is expected to enhance the cross-chain adoption of UST, expand the variety of stablecoins on Polygon, and increase Aave's usage on the platform.
Posted 2 years ago
Last reply 2 years ago
Summary updated 2 months ago
Last updated 04/12 00:18