NEAR token jumps 50% after Terra announces stablecoin integration

The NEAR team announced the integration of the protocol algorithmic stablecoin UST from Terra’s DeFi project. The platform’s token price rose by more than 50%.

📣 @terra_money is partnering with @NEARProtocol and @auroraisnear!

This integration is made possible through a partnership with leading protocols @NearPad and @RoseOnAurora.

🌉 Users can bridge from Terra to Aurora via @Allbridge_io.

Learn more 🔽https://t.co/jwHK1jqECy

— NEAR Protocol (@NEARProtocol) December 21, 2021

According to the statement, the integration was made possible thanks to Terra’s partnerships with the DeFi projects NearPad and Rose on the Layer-2 network Aurora.

The NearPad platform offers services for a decentralised exchange, a token-launch platform and an incubator. Rose is a crypto-lending service.

The partnership is expected to provide users with new capabilities and to foster UST’s development in the NEAR and Aurora ecosystems.

NearPad and Rose will launch incentive schemes to attract liquidity into UST.

“Stablecoins like UST provide a simple interface for storing value and interacting with applications that need to use a stable unit of account,” said NEAR co-founder Ilya Polosukhin.

Since the announcement, the token’s price rose from around $8.8 to around $13.7 at the time of writing.

In December, the volume of Terra ecosystem funds exceeded $18 billion. By this metric, the project trails Ethereum only.

The algorithmic stablecoin UST, backed by the native token LUNA, is a key element of Terra. Over the last seven days, LUNA rose by almost 41% (CoinGecko).

In November, the NEAR team activated network sharding. The Simple Nightshade solution aims to be the first step toward a fully sharded and scalable blockchain.

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