This is a proposal for adding borrow/lend support for TerraUSD (UST) on AAVE
TerraUSD (UST) is an algorithmic, seigniorage-based stablecoin issued by Terraform Labs (TFL). UST is one of the fastest growing algorithmically stablecoins to-date. Its market capitalization has grown to almost $200 million (https://www.coingecko.com/en/coins/terra-usd) since its inception on October 1.
TFL currently uses Shuttle (https://github.com/terra-project/shuttle#terra–ethereum) to bring Terra assets, including UST, to Ethereum. At the time of this writing, the supply of erc-20 UST is roughly $50 million.
Current stablecoins supported by Aave (by market size):
- USDT ($23B)
- USDC ($4.5B)
- DAI ($1.3B)
- BUSD ($1.1B)
- HUSD ($280M)
- UST (190M)
- SUSD ($160M)
- GUSD ($33M) - just passed
UST currently has a daily trading volume of ~$20 million, and is supported on Curve.fi, SushiSwap, Uniswap: https://eth.mirror.finance/, and is a centerpiece of Mirror Protocol (https://mirror.finance/).
Benefits for Aave:
- Diversification of stablecoin assets: the majority of stablecoins on Aave are centralized. Adding UST would add diversity to the different asset types and decrease aggregate risk of the Aave ecosystem
- Diversity of users from both the Terra community (and broader Asia)
- Mirror Protocol (https://mirror.finance/) has recently been launched, driving demand for UST. We believe UST support will provide significant liquidity to the Aave ecosystem
Additional resources on UST:
● Blog: Announcing TerraUSD (UST)— the Interchain Stablecoin | by Do Kwon | Terra Money | Medium
● Website: https://terra.money/
● Docs: https://docs.terra.money/contracts/#growing-active-user-base-with-real-world-usage
● Contract address: $1.0300 | Wrapped UST Token (UST) Token Tracker | Etherscan
● Security audit conducted by Certik: https://certificate.certik.io/reports/terra.pdf