Yeou Jie from DeFiance here. We are supportive of adding UST to both V2 and V3. UST’s growth has been astounding these couple of months, and is the most successful algo stable coin with a market cap of more than $10B. Aave’s liquidity and borrowing demand will surely benefit by supporting UST. I believe that the regulatory heat for asset backed stable coins will continue in 2022 and onboarding UST makes sense now.
Supporting UST initially with 0% LTV collateral should get more support from the wider community. Other risks such as peg mechanism, Do has mentioned that he plans to partially collateralise UST by creating a multi billion reserve of decentralised assets.
We are huge supporters of both Aave and Terra ecosystem, and believe this is a win win situation for both parties.