$UST's adoption is about to skyrocket...๐๐
And with it the value of your $LUNA. ๐
Here's why and how:
๐งตโฌ
And with it the value of your $LUNA. ๐
Here's why and how:
๐งตโฌ
But first, you'll need to brush up on the 'Curve Wars'.
And the best way to do it is to read this brilliant thread by @Crypto8Fi:
And the best way to do it is to read this brilliant thread by @Crypto8Fi:
Curve's 3Pool consists of $DAI + $USDC + $USDT.
$UST had created a $UST - 3CRV pool to increase $UST's adoption.
So, anyone can swap $DAI, $USDC or $USDT to get $UST.
TLF heavily incentivized liquidity providers to increase the $UST - 3CRV pool's liquidity.
However...
$UST had created a $UST - 3CRV pool to increase $UST's adoption.
So, anyone can swap $DAI, $USDC or $USDT to get $UST.
TLF heavily incentivized liquidity providers to increase the $UST - 3CRV pool's liquidity.
However...
So was Maker DAO to increase the liquidity for the $FRAX - 3CRV pool.
Do Kwon came up with a genius idea:
Why not bring together all the 4 major stablecoins instead of pitting them against each other?
This idea gave birth to the 4Pool -
$UST + $FRAX + $USDC + $USDT
Meaning:
Do Kwon came up with a genius idea:
Why not bring together all the 4 major stablecoins instead of pitting them against each other?
This idea gave birth to the 4Pool -
$UST + $FRAX + $USDC + $USDT
Meaning:
Anyone can swap between any two of these token pairs.
The ethos behind the 4Pool:
'Stablecoin pegs are stronger together than competing against each other.'
This way:
$UST gets massive exposure from users on different chains like Ethereum, Polygon, Frax, etc.
But first:
The ethos behind the 4Pool:
'Stablecoin pegs are stronger together than competing against each other.'
This way:
$UST gets massive exposure from users on different chains like Ethereum, Polygon, Frax, etc.
But first:
4Pool has to accumulate colossal liquidity.
Here's how Terra and Frax plan to make that happen.
Terra and Frax are the two largest token holders of CVX.
Together they hold over 3.6M $CVX tokens.
Plus, they are also the two largest votium incentivisors.
How much?
Here's how Terra and Frax plan to make that happen.
Terra and Frax are the two largest token holders of CVX.
Together they hold over 3.6M $CVX tokens.
Plus, they are also the two largest votium incentivisors.
How much?
Terra gives away 4M $UST and Frax gives away 7M $FXS.
That means:
Together they can direct vlCVX power and votium incentives to make 4Pool the most liquid and utilized stable pool across chains.
That's not all.
That means:
Together they can direct vlCVX power and votium incentives to make 4Pool the most liquid and utilized stable pool across chains.
That's not all.
Redacted Cartel also holds over 1M $CVX tokens.
With Terra and Redacted Cartel's partnership...
The latter will use their $CVX to vote for the 4Pool via their DAO.
And soon, Olympus DAO will also join the party.
With Terra and Redacted Cartel's partnership...
The latter will use their $CVX to vote for the 4Pool via their DAO.
And soon, Olympus DAO will also join the party.
In short:
Frax, Terra, Redacted Cartel, Olympus DAO and possibly other mass holders of $CVX tokens will bring a flood of liquidity into the 4Pool.
Which also leads to 4Pool having the highest APY on Curve.
This means:
Frax, Terra, Redacted Cartel, Olympus DAO and possibly other mass holders of $CVX tokens will bring a flood of liquidity into the 4Pool.
Which also leads to 4Pool having the highest APY on Curve.
This means:
More LPs will rush to drop their stables into the 4Pool to earn that juicy APY.
In other words - more liquidity.
All this leads to higher $UST adoption and usage.
Because remember:
Through 4Pool, $USDT and $USDC holders can easily access $UST.
But why would they want $UST?
In other words - more liquidity.
All this leads to higher $UST adoption and usage.
Because remember:
Through 4Pool, $USDT and $USDC holders can easily access $UST.
But why would they want $UST?
We have deep-dived into why $USDT and $USDC holders are already piling up $UST.
Check it out in this thread:
Check it out in this thread:
Thanks to this:
The 4Pool could be the springboard that launches $LUNA value to the moon.
Here's why:
As more people rush to provide $UST into the 4Pool and earn a high APY...
Terra will have to eventually increase $UST's supply.
This means:
The 4Pool could be the springboard that launches $LUNA value to the moon.
Here's why:
As more people rush to provide $UST into the 4Pool and earn a high APY...
Terra will have to eventually increase $UST's supply.
This means:
Minting more $UST against $LUNA.
We covered how this catapults $LUNA value in this thread:
We covered how this catapults $LUNA value in this thread:
To wrap up:
The 4Pool might hit the nail in the coffin for the Curve War.
And in return take $UST several notches closer to becoming the most widely used stablecoin across the cryptoverse.
If you enjoyed this thread, don't forget to drop a โค๏ธ๏ธ and ๐ it to share the love.
The 4Pool might hit the nail in the coffin for the Curve War.
And in return take $UST several notches closer to becoming the most widely used stablecoin across the cryptoverse.
If you enjoyed this thread, don't forget to drop a โค๏ธ๏ธ and ๐ it to share the love.
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