Beefy Partners With Terra, They believe that decentralized finance needs a decentralized stablecoin. For this reason Beefy applied for a Terra Grant that passed with a quorum of 64%. With this, they now have $400,000 UST to use to expand UST & LUNA adoption across the many chains Beefy is on.
To begin, They are boosting the newly launched 4pool with $75,000 of UST starting right after the current $ORKAN boost finishes. This won’t be the last boost on the 4pool, so don’t move your stablecoins too far away!
The 4pool is a key component to keep UST pegged to other stablecoins. Curve is the leader in stableswaps, and having great liquidity in this pool is vital to keep UST with a healthy peg. That is why we decided to start with this boost.
They also won’t be just using the grant for boosts. They will also share educational content about stablecoins, so you can make the best decisions with your tokens, and do giveaways to raise awareness.
What does this mean for $BIFI holders
The team is constantly looking for opportunities to bring new products and benefits to their users and holders. These boosts will be aimed at attracting more TVL to the platform, give users better yields, and effectively generate more earnings to distribute.
How does TerraUSD (UST) work?
Although Terra has a wide variety of stablecoins, TerraUSD (UST) is by far the most famous and popular. The token is pegged to the US Dollar, but unlike Tether or USDC, it doesn’t use fiat as collateral. Tether also differs from DAI’s crypto over-collateralization model.
To maintain a peg of one UST to one dollar, Terra uses algorithmic controls. 1 UST can always be converted to exactly one dollar’s worth of LUNA and vice versa. Terra burns any LUNA converted to UST, and 1 UST is always treated as being worth $1 when converting. When the currency is off its peg, arbitrage brings it back in line through market forces.
Terra is a layer 1 blockchain that allows for the creation of fiat-pegged stablecoins. To achieve this, Terra uses a seigniorage mechanism that maintains each stablecoins peg. The blockchain runs with a Delegated Proof of Stake consensus mechanism and has its own native utility token LUNA.
Beefy is a Decentralized, Multi-Chain Yield Optimizer platform that allows its users to earn compound interest on their crypto holdings. Through a set of investment strategies secured and enforced by smart contracts, Beefy Finance automatically maximizes the user rewards from various liquidity pools (LPs), automated market making (AMM) projects, and other yield farming opportunities in the DeFi ecosystem.