Terra’s Do Kwon Announces Revolutionary Liquidity Pool Launch with UST, USDT, USDC and FRAX

Vladislav Sopov

A new instrument for liquidity providers will open up unprecedented opportunities


  • Terra Introduces a New Standard for Stablecoin Liquidity
  • Terra USD (UST) arrives in the Ethereum DeFi ecosystem

Do Kwon, CEO and Founder of Terraform Labs, shared details of a new Curve pool that includes major stablecoins from the centralized and decentralized scenes.

Terra Introduces a New Standard for Stablecoin Liquidity

Mr. Kwon announced today, April 2, 2022, that his team will launch a new liquidity pool with DeFi majors Frax Finance and Redacted Cartel.

The architecture of the new mechanism dubbed 4pool includes two main centralized stablecoins, US Dollar Tether (USDT) and USD Coin (USDC), the largest decentralized stablecoin Terra USD (UST) and FRAX from Frax Finance, the first fractional-algorithmic stablecoin in Challenge .

The Terra founder points out that the current launch should be a milestone for the entire Web3 space in terms of sustainability and interoperability:

The 4pool is an exciting new primitive on all EVM chains where the curve lives, balancing truly decentralized stablecoins with off-chain liquidity.

Once the pool is online, the infamous “Curve Wars” will be over: the two largest CVX holders, Terra and Frax, will collaborate with each other on liquidity logistics.

Terra USD (UST) arrives in the Ethereum DeFi ecosystem

The exact technical details and rationales behind creating the new design are covered by the anonymous Terra Ezaan researcher in his Publish on the Terra Agora forum.

He said the new pool will change the narrative of cross-chain compatibility for stablecoin LPs as it will be tested on Fantom (FTM), Arbitrum, and the Ethereum mainnet simultaneously.

Overall, this collaboration should strengthen the positions of Terra’s native stablecoin, UST, in the DeFi segment of Ethereum.

As covered by U.Today previously, yesterday, April 1, Bitcoin critic Peter Schiff proposed making UST the “standard crypto gold” by backing it with gold reserves (XAU). The Do Kwon of Terra rejected this proposal.

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