Though USDT (Tether) and USDC (USD Coin) are considered to be the most suitable stablecoins in the ecosystem of cryptocurrency, another such coin appears to move toward the top. On November 30, the official account of UST (TerraUSD) on Twitter posted a proposal to increase the liquidity of the coin on Ethereum, via utilizing a plan expanded over six months. In a formal transcript, a consumer called “ezaan” noted the eventual objective is to take UST to a place of a stablecoin which is the go-to interchain. The respective process starts with comprehensive liquidity of UST on the Curve Finance (an Ethereum-based AMM specified for stableswaps) as well as moves on to identify UST’s most suitable use cases available on Ethereum such as OlympusDAO, Tokamak, Covex Finance, and Rari Fuse pools.
Utilizing DeFi protocols, the concept used to carry out the swaps of millions of dollars value between UST and LUNA to receive benefits, or utilize the UST for the farming of CRV and CVX. At the time of press, as per Defi Llama, nearly $21.38B were held by Curve (CRV) in TVL (total value locked), with CVX (Convex Finance) having $16.13B. This takes them to the position of being the most prominent and the third most prominent DeFi protocols in terms of TVL respectively.
Having a shaky ground
The market cap position of UST was 29th at the time of press, whereas the USDT and USDC were both included in the list of top ten. Nonetheless, the two great coins have done a lot of struggle for getting there up till now. Some months ago, Circle (the issuer of USDC) acknowledged having had been inquired on the behalf of the SEC of the United States and doing complete cooperation. On the contrary, Tether has been facing its issues. The stablecoin, notwithstanding the attention thereof toward the compliance, latterly underwent scrutiny following minting USDT in billions of numbers. However, it has been clarified by Tether that the respective minting was done to be utilized in chain swaps.
In the core, due to the previous legal tangles of Tether, the crypto watchers have become nervous. Mr. Whale (a crypto influencer), while adding fuel to the fire, introduced up to $3M in bounty for learning more regarding the backing of Tether. Notwithstanding the popularity of stablecoins, a very important question has been whether USDT is completely supported by dollars or not. Such concerns will bother UST if it comes to the peak.