Proposal: Add support for Terra USD (UST)

Would be amazing to have UST on Aave!

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Great idea! UST support should be added ASAP.

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Let UST go free on AAVE

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I was septic in the beginning, but after research i discovered what a great team this is and how much work they do in short timeperiods;
I’m a LP for MIR/UST and looking now to begin with M-assets.
Having an actualy working product is so much better than most out there.

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No brainier, do it, do it

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I am familiar enough with the project to hold UST and some other Terra tokens. Risk-adjusted, of course, so relatively few.

My main point is, you haven’t really explained why Aave should spend resources on evaluating risks, implementing and insuring the market for UST, etc, as opposed to other new assets that may be more mature, have more liquidity to be locked and are more aligned with success of Ethereum, like Aave itself.

Look at other supported stablecoins, you will see that Aave markets are a small fraction of their total market cap. How much of UST do you expect Aave to capture? A few hundred thousand? A million?

Anyway, if you, @jeff_terra and the rest of UST community is serious about having UST on Aave, I wish you success and recommend moving forward with a more solid ARC. This should be useful: Governance - Governance, especially “Listing New Assets” section.

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Totally makes sense for AAVE to add UST. We’re talking about a stablecoin used irl. It opens the doors for new users potentially coming from outside of crypto. Win win situation.

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Sounds great to support. It will increase more volume.

UST is the future! $LUNA

Hello, as for any other proposals regarding technical aspects of the protocol, the asset listing process is now completely decentralized. Anyone can propose any asset listing, provided they have enough proposition power (proposition power can be collected either by delegating AAVE or stkAAVE or by owning AAVE/stkAAVE in the first place). The threshold needed is 0.5% of the total supply. @jeff_terra, if you want to move forward with the proposal, once enough proposition power is collected the aave genesis team is available for support on the technicalities. Here we have all the documentation needed Voting & Governance - Developers including a specific tutorial for asset listing.

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Thank you for opening the proposal. Also thanks @haave for pointing out some best practises on listing new assets into the Aave Protocol. My concern from risk perspective on UST is that there is a mint function of UST that is owned by 0xc6821958f8d73ad0819502c35e383DB8D3077ea2, EOA. While it’s not uncommon for assets with centralized properties to exists (for example USDT and USDC have centralized properties), it does take time for the community to trust these centralized properties of assets since inception. What could help to mitigate the risk is to use a multi-sig as the owner and document the ownership and community multi-sig ownership.

Notwithstanding above, from process perspective, the Aave Protocol governance is decentralized and with 0.5% of proposition power (via holding AAVE or delegated) allows to place the proposal on-chain for voting as @Emilio mentioned.

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Thanks @stani and @haave for your comments. Some responses below:

  1. Regarding the trustworthiness of our stablecoins:
    Terra stablecoins have been operational for >18 months (KRT launched before UST) without breaking peg. We believe this is a testament to the robustness of our stablecoins and to the maturity of our ecosystem

  2. Regarding our bridge being EOA:
    Most stablecoins have centralized issuers that guarantee value (e.g. USDT, USDC), and we believe sufficient time has passed since the inception of our assets for the community to evaluate risks (1+ years). There is also significantly less risk for an EOA bridge with Terraform Labs as the custodian vs. a centralized fiat-backed stablecoin platform which has additional risk such as regulatory seizure, non-transparency of reserve,etc. While our bridge is EOA with the keys being held by Terraform Labs, we have plans to migrate this control to a multisig operated by third party validators in Wormhole

  3. Regarding ETH alignment
    We aspire for UST to be the cross-chain stablecoin, and ETH is the obvious ecosystem to be investing in. UST is supported on Curve, Sushiswap, and Balancer, and we’re investing in partnerships with a number of other Ethereum projects.Hopefully this shows our dedication to helping grow and invest in the Ethereum community for the long-term

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Hi,
any update on this? UST is now a top 5 stablecoin, keeping its peg rather well. Why don’t we have it on Aave, yet?

Thanks!

I would love to see this happening any time soon

I think it would be incredible to add UST to all the Aave markets that can support it. UST as mentioned is a decentralized stable coin, and truly aligns with the goals of crypto. So I am completely for it!

Is TerraUSD going to be removed from Aave in light of recent developments?

@yuradmt aave protocol has 0 risk exposure to terra as tvl is set to 0, there’s no good reason to unlist.
As long as UST not going to 0 the treasury is generating money from it.

Edit: that didn’t age well as now the aUST is also worthless

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