Terra (LUNA) has proposed a $139 million donation to five separate decentralized finance initiatives based on Ethereum, Solana, and Polygon. The objective would be to improve Terra’s native UST stablecoin. However, this idea would need to be approved by the Terra community.
The document titled UST Goes Interchain: Degen Strats Part Three details how $139 million will be spent on DeFi platforms.
Terra is a blockchain technology company that creates, owns, and develops blockchains and applications. As it is expanding into the decentralized finance realm, Terra will be investing in DeFi projects focused on improving the security of traditional financial systems.
DeFi refers to decentralized finance and it’s a subset of fintech startups that create platforms for investing directly into assets without using third-party intermediaries like banks or brokerages.
Terra has chosen numerous cooperation projects for which it expects to provide a minimum deposit of $50 million to ensure its viability. In this approach, he hopes to establish a case for UST usage on more chains.
Do Kwon, Terra’s creator has previously stated similar ambitions. He previously said that the UST should have “dominant stability” in the industry.