On Tuesday, March 22nd, Venus Protocol announced the launch of the LUNA and UST markets. This announcement follows a recent governance decision by the Venus protocol community. While these markets are so new, they will vastly benefit the Terra network and Venus protocol.
Venus Protocol Introducing LUNA and UST Markets
Today, Venus announced the official introduction of LUNA and UST markets in the protocol. Venus Protocol is a decentralized money market protocol based on the Binance smart chain. It offers opportunities for lending and borrowing of crypto assets.
Earlier, Venus had around 23 markets for borrowing and lending assets. However, at the moment, their application has been updated to 25 markets, including LUNA and UST. Currently, the total borrow in the Venus protocol is over $800 million. Just a few hours old, the LUNA and UST markets have a combined borrowing valuation of over $1.5 million.
The addition of these two markets was completed after a community vote. According to a certain report, on March 8th, 15 days ago, Venus asked the community about adding UST and LUNA markets. The last discussion on the topic occurred five days ago. There were two voting sessions. The first one, VIP 53, failed, and the second VIP54 passed.
Reasons for Launching LUNA and TUS Markets
Before the voting sessions, the Venus protocol gave some background information on the two assets. This background information could be the main reason for adding the two assets. According to the report, LUNA and UST are all assets coming from the Terra network.
The blog notes that a strong team created UST and LUNA. It also highlights that LUNA and UST have a huge community. Moreover, both assets have several use cases, including governance, settlements, and cross-border payments for UST.
According to Venus’s blog,
“These use cases for UST and LUNA provide sufficient demand for borrowing and lending.”
Terra’s ability to host Defi projects also was a major advantage. For instance, Venus notes that Terra has incubated large projects, including some with a TVL as high as $1.6 billion. Also, the UST is already popular token trading on major DEXs, including Curve and Uniswap.
For those many reasons, the community accepted the proposal to introduce LUNA and UST markets. Reading through the community discussion page comments, many investors considered LUNA and UST introduction a good idea.
One investor called BNB Bull even said, “At this point, LUNA and UST are no brainer. High liquidity, great community, and access to everyday DEFI users can all be augmented on Venus. List them ASAP.” The community support led to TUS and LUNA listings.
Possible Impact on Terra and Venus Protocol Communities
The addition of the two assets could bring some benefits to Venus Protocol, Terra, and the DeFi lending world. Terra’s large community will now be exposed to the Venus Protocol and the lending opportunities. The Venus community could increase because of new members from the Terra ecosystem.