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LFG, una organización sin ánimo de lucro encargada de crear reservas para la stablecoin algorítmica de Terra, TerraUSD (UST), utilizó sus propios holdings de UST para The Lunda Foundation Guard, which is responsible for backing Terra’s stablecoin USDT by building up the treasury reserves, acquired $100M in AVAX by swapping Near Protocol, a layer-1 blockchain and competitor to both Ethereum and Terra, is rumored to be releasing a stablecoin called USN which will reportedly also offer a Terra, who firmly grabbed the attention of the cryptocurrency and DeFi world by committing to buy $10 billion in bitcoin to build a reserve for its native UST stablecoin is Terra Foundation is set to acquire a huge chunk of AVAX tokens in order to back its stablecoin UST; The Foundation was previously on a hunting spree for Bitcoin as it Terra has bought $100 million worth of Avalanche’s AVAX as a reserve asset for its algorithmic stablecoin, UST. Terra's UST stablecoin is already backed by a Bitcoin reserve that could eventually reach US$10 billion. The firm added another US$230 million in Bitcoin on Terra has integrated Avalanche tokens alongside Bitcoin as part of its UST reserve strategy, allying with the popular 'Ethereum killer'

Terra Chooses Avalanche Over Ethereum to Back Stablecoin Reserve: A Strategic Shift

The cryptocurrency world is buzzing with the news: Terra, having firmly grabbed the attention of the cryptocurrency and DeFi world by committing to buy $10 billion in bitcoin to build a reserve for its native UST stablecoin, has now integrated Avalanche tokens alongside Bitcoin as part of its UST reserve strategy, allying with the popular \'Ethereum killer\'. This marks a significant strategic shift, with Terra choosing Avalanche (AVAX) to further bolster its reserve assets.

LFG Diversifies UST Backing with AVAX

LFG, una organización sin ánimo de lucro encargada de crear reservas para la stablecoin algorítmica de Terra, TerraUSD (UST), utilizó sus propios holdings de UST para The Lunda Foundation Guard, which is responsible for backing Terra’s stablecoin USDT by building up the treasury reserves, acquired $100M in AVAX. This move demonstrates a proactive approach to diversifying the reserves backing UST and further solidifying its stability.

Why Avalanche (AVAX)? An \'Ethereum Killer\' Partnership

Terra has bought $100 million worth of Avalanche’s AVAX as a reserve asset for its algorithmic stablecoin, UST. Avalanche, a high-performance blockchain often touted as an "Ethereum killer," offers several advantages that likely influenced Terra\'s decision. Its speed, scalability, and low transaction fees make it an attractive platform for DeFi applications. The partnership could signal Terra\'s belief in Avalanche\'s potential and a desire to tap into its growing ecosystem.

Beyond Bitcoin: UST Reserve Strategy Evolving

Terra\'s UST stablecoin is already backed by a Bitcoin reserve that could eventually reach US$10 billion. The firm added another US$230 million in Bitcoin on Terra. While Bitcoin remains a cornerstone of the UST reserve, the addition of AVAX signifies a broadening strategy. This approach aims to create a more resilient and decentralized reserve, mitigating risks associated with relying solely on a single asset.

Impact on the Crypto Market

Terra Foundation is set to acquire a huge chunk of AVAX tokens in order to back its stablecoin UST; The Foundation was previously on a hunting spree for Bitcoin as it. This substantial purchase of AVAX has undoubtedly impacted the market, increasing demand and potentially influencing its price. It also sets a precedent for other stablecoin projects considering alternative reserve assets.

While Near Protocol, a layer-1 blockchain and competitor to both Ethereum and Terra, is rumored to be releasing a stablecoin called USN which will reportedly also offer a... the strategic alliance between Terra and Avalanche represents a calculated decision to enhance UST\'s stability and expand its ecosystem reach, further solidifying its position in the competitive stablecoin landscape.

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