While Tether (USDT) and USD Coin (USDC) are arguably the best stablecoins in the crypto ecosystem, another is about to take the throne.

On November 30th, the official TerraUSD (UST) account tweeted about a proposal to increase the liquidity of stablecoins on Ethereum with a six-month plan.

In the official documentation, a user named “ezaan” To write:

“The ultimate goal is to make UST an interchain stablecoin. This process starts with massive UST liquidity at Curve Finance, Ethereum’s preferred automated market maker (AMM) for StablesSwaps, and continues with finding the best use cases for UST at Ethereum, such as OlympusDAO, Rari Fuse Pool, Convex Finance and Tokemak.

Using DeFi protocols, the idea is to exchange UST worth millions of dollars for LUNA for incentives or use UST to farm CVX and CRV for a community pool.

“A new proposal to significantly increase the UST liquidity in the Curve Finance pool with a 6-month incentive plan by Votium, Convex Finance and Token Reactor.”

At press time, Curve (CRV) holds a Total Locked Value (TVL) of $ 21.38 billion, while Convex Finance (CVX) holds $ 16.13 billion, according to Defi Llama. This makes it the largest and third largest DeFi protocol from TVL.

Probably fails

UST currently has a market cap of 29 while USDC and USDT are both in the top 10. So far, however, the USDC and USDT have struggled.

A few months ago, the issuer USDC Circle admitted that it was being investigated by US Securities and Exchange Commission (SEC). On the flip side, despite its focus on compliance, Tether was recently put to the test after minting billions of USDT. While Tether CTO Paolo Ardoino makes it clear that these are for chain swaps, there is still a lot of FUD going on.

What is more important

In essence, Tether’s regulatory issues in the past have worried crypto watchers, and USDT’s moves could harm the market.

Context: https://t.co/zJDmwCRFFp

– Paolo Ardoino (@paoloardoino) November 30, 2021

In addition to the frenzy that crypto influencer, Mr. Wal was started $ 3 million bonus to learn more about Tether’s reserves. Despite the popularity of stablecoins, the question of whether USDT is fully dollar backed has been an issue for years.

If the UST is to rise to the top, it must be able to overcome similar difficulties.

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