The blockchain of Terra is being developed by two important organizations that have together bought $200 million in AVAX. There is a rumor that the Near Protocol will soon release a new stablecoin. The two organizations mentioned are Luna Foundation Guard (LFG) and Terraform Labs (TFL) and both of them combined will buy $200 million worth of Avalanche tokens from its foundation.
Terra And LFG Together Bought Avalanche Tokens As Rival Stablecoins Arrived
TFL has been given the responsibility of developing the blockchain of Terra and has recently swapped $100 million to get along with the incentive ecosystem in a strategic way. This information was posted from its official Twitter account. The non-profit organization, LFG will mandatorily construct reserves for TerraUSD (UST) and will utilize the holdings of UST to buy an extra $100 million AVAX.
The concerned purchases are made just to get back the stability of the native stablecoin with a market capital value of $16.7 billion. Do Kwon, the founder, stated that LFG chose Avalanche just for the reserves of its UST and for development in the ecosystem of blockchain along with the loyal users.
It is continuing its process of making the position of UST strong, meanwhile, the competitors are trying to dethrone the stablecoins. Near Protocol is a blockchain of layer-1 and a rival to both Terra and Ethereum will likely launch a stablecoin of its own known as USN which will also offer a protocol of DeFi. This protocol will give the users an annual percentage yield of 20% on their deposit of USN.
This situation is quite similar to the ecosystem of the Terra Anchor protocol which gives an offer to the users of 19.49% APY on the deposit of UST. In the views of Zoran Kole, Near Protocol was far superior to both and used to offer data from Electric Capital that portrayed the growth of the company.