Terra’s UST Becomes Default Stablecoin on Avalanche-based DEX

Avalanche-based decentralized exchange, Pangolin, has announced that Terra‘s UST will henceforth be its default stablecoin.

It announced this on Twitter where it stated that anyone who logs into the platform will now have UST as the default token for use. 

Pangolin Onboards Terra’s UST

According to its blog post, it says the move is part of its commitment to support decentralized stablecoins that push the boundaries of innovation.

#PangolinDEX joins #Avalanche Rush to bring $UST to #AVAX!$UST is the most abundant and widely used algorithmic stablecoin of any blockchain!

Our new farm later today will provide huge rewards as our second round of Super Farming.

Read more: https://t.co/RQEIIlLNpd

— Pangolin 🔺 (@pangolindex) January 27, 2022

Pangolin is a decentralized exchange that supports Ethereum and Avalanche assets. Based on Avalanche, the DEX boasts of low transaction fees, fast settlement, and democratic distribution. It uses the same automated market maker model as Uniswap and has its native token, PNG.

The decentralized exchange, launched in February 2021, has grown significantly and now claims to have a TVL of over $100 million. 

Since its launch, the DEX has facilitated almost $9 billion worth of transactions. It serves as the centerpiece of the DeFi infrastructure on the Avalanche ecosystem.

Pangolin first decided to add UST to its ecosystem as part of the Avalanche Rush incentive program. This gives the exchange access to $2 million in AVAX rewards and additional PNG and LUNA rewards. These rewards would be available through an innovative three token Super Farm on Pangolin.

The Avalanche Rush Incentive program is a collaborative effort of Avalanche, Terra Labs, Pangolin, and Axelar to bring TerraUSD (UST) to Avalanche. UST is the most popular and used algorithmic stablecoin on the blockchain.

Other Platforms Using UST

Apart from Pangolin Index, several other platforms use the UST. Some of them include the Ethereum-based liquidity provider and market maker Tokemak, decentralized reserve currency protocol OlympusDAO, yield aggregator Convex Finance, and permissionless borrowing and lending platform, Rari Fuse.

The widespread use of UST has greatly benefited Terra’s native token, LUNA. The token is currently trading at $50.96 after a 7.5% increase in the past 24 hours. Though that’s over 50% down from the all-time high it set in December last year. 

However, it currently ranks as the 9th largest crypto asset by market cap.

The news may have positively influenced LUNA’s recent performances, given that its price action was negative for the past seven days. On the other hand, PNG has also seen a 6.9% rise in value today and currently trades at $0.345.