Terra introduces 4pool for UST, FRAX, USDC and USDT stablecoins

The Terra community continues making efforts to emerge as a leader in decentralized finance (DeFi). The network has announced the launch of “4pool” to support the growth and adoption of UST and the FRAX algorithmic stablecoin.

The Terra network has been making notable adjustments to its network to make it competitive in the crypto sector. Besides the launch of this new pool, the Terra network is also buying Bitcoin (BTC/USD) reserves to stabilize the value of the UST stablecoin.

Terra’s new 4pool

The largest stablecoin pool in the market currently is 3pool. The pool offers super deep liquidity for a wide range of stablecoins, including USDC, USDT and DAI. The liquidity offered by this platform is $3.2 billion.

Terra is planning to launch the 4pool liquidity pool that will be similar to what is offered by 3pool. This liquidity pool will support UST, FRAX, USDT and USDC. To attract more people to the platform, the users will attempt to max out the token rewards provided on Curve.

There is one notable difference between 3pool and 4pool. The latter has eliminated DAI, which can potentially disrupt the DAI ecosystem. The pool is also maximizing the total rewards provided to those offering liquidity to the new pool; hence this will affect the depth of the liquidity supplied to 3pool. However, Maker, which is currently a leader in decentralized finance, is not likely to take these changes lying down, and it could integrate more features to 3pool.

Terra’s growth record

Terra is currently a formidable competitor in DeFi and the entire cryptocurrency space. Terra (LUNA/USD) is currently the second-largest blockchain with a total value locked (TVL) of $27.18 billion, according to DeFiLlama.

The LUNA token has also been a top performer this year. The token reached an all-time high of $119.18 last week, and while it has slumped from these highs because of the recession in the broader market, the trading volumes continue to indicate that the token could be headed towards major highs. The Luna Foundation Guard is also adding Bitcoin to its UST reserves. The LFG plans to have Bitcoin reserves that will back the value of the UST stablecoin.

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