Terra’s Intentions to Purchase $200M Price of AVAX Defined

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After buying over $1 billion value of bitcoin in weeks, Terra has turned its sights to different cryptocurrencies. Each Terraform Labs and the Luna Basis Guard introduced plans to execute in whole two token swaps value $200 million with Avalanche.

  • CryptoPotato reported the frequent BTC purchases from Terra, because the workforce desires to construct up its bitcoin reserves as much as $10 billion to again up its stablecoin – UST. As of now, Terra owns practically 36,000 BTC, value over $1.5 billion.
  • Nonetheless, Terraform Labs additionally outlined a collaboration with Avalanche that may see the previous full a $100 million LUNA – AVAX token swap.
  • Individually, the Luna Basis Guard (LFG), one other group supporting the Terra blockchain, mentioned it can mimic the transfer. It agreed to an OTC deal value $100 million as effectively so as to add AVAX to the UST reserve, which made Avalanche’s native cryptocurrency the “first main crypto-asset moreover BTC to be added to the UST reserve.”
  • Based on the Terra workforce, this can mark the start of a “diversified and non-correlated asset pool supporting the UST peg.”
  • Afterward, Do Kwon – Terraform Labs’ CEO – offered extra particulars on the collaboration with Avalanche, referring to the latter as “one of the vital thrilling ecosystems in web3.”
  • He defined that LFG’s AVAX tokens will probably be used to supply a reserve towards UST utilizing the automated mint mechanism equivalent to the one for bitcoin.
  • Because of this UST will turn into AVAX native and also will be minted and redeemed towards AVAX on the Avalanche blockchain.
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