Terra (LUNA) Coin is Getting a Big Boost From a Pair of Proposals
InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Terra (LUNA) coin is seeing all-time highs today as a one proposal winds down and another starts up, both...
The Terra (CCC:LUNA-USD) crypto is one of a handful of lucky coins to see massive gains in 2021… and keep them. In a crowd of altcoins that have surged and flopped, Terra’s LUNA has seen gains of nearly 9,000%. Most importantly, the network has held onto these gains. This is thanks in large part to the many proposals launched by developers and community leaders to steer the ship in the right direction. Today, the Terra (LUNA) coin is seeing a new all-time high. This comes as two new proposals catch investors’ attention.
Terra is a robust stablecoin ecosystem. At its most elementary level, it provides LUNA to investors alongside a USD-pegged stablecoin called UST. These cryptos have liquid circulating supplies in order to keep UST at its $1 value; users can convert their LUNA to UST to up UST’s circulating supply or convert UST to LUNA to decrease the UST supply. While this keeps UST at its intended price target, it also allows holders to profit through LUNA arbitrage.
A slew of proposals have come and gone, all intended to help make UST the most widely used stablecoin. Some have been shot down, but many have passed with great success. A pair of proposals today is helping to further adoption by better incentivizing liquidity providing across networks. While one is looking like a success as it winds down, a second is surfacing to build upon the first.
Terra (LUNA) Coin Reaches All-Time High
The first of these two proposals, Proposal No. 143, was introduced in mid-November. The goal of this proposal is to further UST’s reach across the blockchain universe; this will hopefully lead to widespread adoption of UST. It aims to achieve this by introducing $3 million in LUNA as incentive for liquidity providers. Those who provide liquidity across major blockchain networks like Ethereum (CCC:ETH-USD), Binance (CCC:BNB-USD) and Polygon (CCC:MATIC-USD) will reap this new LUNA as a reward for making UST more available to potential investors.
Users expect this proposal to pass as the vote ends tomorrow. In anticipation of this incoming change, community members are making new proposals for furthering this same goal of widespread adoption. One proposal in particular is catching investors’ attention. This proposal builds on Proposal No. 143’s goal, this time by incentivizing liquidity providing on Curve (CCC:CRV-USD) and Votium, among others.
Curve is the largest automated market maker of stablecoin swaps on Ethereum with its $20 billion in assets locked; it would be a major success to have UST become one of the most highly traded stablecoins on the application. This proposal aims to incentivize liquidity providing on the applications by converting $12 million in UST to LUNA for reward distribution. It also includes two sub-proposals that similarly focus on incentive building.
1/ A new proposal to significantly increase $UST liquidity on @CurveFinance pools via a 6-month incentive plan through @VotiumProtocol, @ConvexFinance, and @TokenReactor is now posted on Agora 👇https://t.co/PiUnSqWUCw
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) November 30, 2021
The Bottom Line on LUNA-USD
These proposals are robust, sure. But, even without the technical knowledge of liquidity providing, it’s a great sign to investors that the network is pushing for widespread adoption. That’s why, as Proposal No. 143 winds down in anticipation of approval, there’s a lot of bullishness on LUNA. In fact, LUNA is reaching an all-time high today in the midst of these proposals. The coin is soaring over 14% to a record value of $58.12. Also helping to boost the coin’s value is an increasing trading volume; LUNA trades are up 37% over yesterday’s volume.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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