Saber Launches First TerraUSD Stable Pool on Solana

Published on: 08.07.2021

Saber is announcing an integration with Terra to launch the first TerraUSD (UST) stable pool on Solana.

Starting today, users will be able to trade UST and earn yield by supplying liquidity to the UST-USDC pool.

For initial launch, they’ll be using Wrapped UST bridged over from Ethereum via Wormhole. Once the Terra Wormhole bridge is completed, they plan to migrate liquidity over to the Terra-originated version of UST.

A key growth metric for Terra’s ecosystem is the market cap of its stablecoins. LUNA, Terra’s governance token, is used as part of an algorithmic balancing system that helps the stablecoins maintain their pegs. For example, when TerraUSD trades above $1, users can send $1 worth of LUNA to the system and receive 1 UST in return — a trade that helps to bring the stablecoin’s price back in line. Through our listing of UST, we aim to accelerate Terra’s growth on the Solana blockchain, and therefore the ecosystem as a whole.

To further the momentum of Terra on Solana, they hope to work with the Terra community on a plan to incentivize UST liquidity on Saber. They’ll also soon be launching a stable pool for tokenized LUNA.

What is Saber?

Saber is a Solana-based decentralized exchange optimized for high volume, low volatility asset pairs. On the exchange side, users can securely trade between crypto assets of similar value, like USD-pegged stablecoins or copies of cross-blockchain assets, with minimal fees. On the market making side, anyone can provide liquidity to Saber to earn yield from transaction fees.

Saber’s innovation is an advanced algorithm that enables low slippage trading, even at large volumes, while still maintaining high capital efficiency for liquidity providers.

What is Terra?

Terra is a next-generation proof-of-stake blockchain protocol that aims to power global payments systems through fiat-pegged stablecoins. By hosting stablecoins backed on a 1:1 ratio with the world’s top fiat currencies, Terra’s goal is to make its stablecoins available to mainstream audiences across the globe.

The Terra blockchain is powered by its native cryptocurrency LUNA. LUNA is used to stabilize Terra’s stablecoins, such as UST. UST is touted as being the first decentralized stablecoin that is scalable, yield bearing and interchain. UST is currently interoperable with Ethereum and Solana and it aims to improve DeFi projects’ scalability.