Terra Luna proposed a governance discussion to create deep liquidity for stablecoins and Cosmos tokens (ATOM) on Terra. This proposal is in line with Terraform Labs CEO Chris Amani’s plan to bring the highest stablecoin liquidity to Cosmos.
A proposal was submitted to whitelist USDC-USDT and ATOM-LUNA liquidity pool (LP) tokens to establish deep stablecoin and Cosmos token liquidity on Terra by Terraform Labs on February 15. The above-mentioned stablecoins will be whitelisted by the Astroport liquidity protocol as Alliance assets, with other liquidity pools planned in the future such as TIA-LUNA, DYDX-LUNA and others.
If the proposal is approved after governance voting, TFL will collaborate with Astroport contributors to create a stableswap USDC-USDT pool and an ATOM-LUNA PCL pool ahead of adding the Alliance assets. A USDC-USDT liquidity pool doesn’t exist yet, and the current ATOM-LUNA pool is less capital-efficient. Whitelisting LP tokens from pools containing USDC, USDT, and ATOM as Alliance assets is a major development. It will help offer better APRs within Cosmos without DEX swap fee, attracting a broad user base to Terra.