The Terra protocol team revealed a collaboration with Avalanche and the purchase of AVAX coins. Terraform Labs bought $100 M in AVAX for Treasury Swap of LUNA and AVAX to boost various activities.
Related: Terraform Labs Bought $230 M Worth of Bitcoin
Along with this, the Luna Foundation Guard bought $100 M in AVAX with UST stablecoins. AVAX is now the second major crypto after BTC that is added to the UST’s Reserve.
A Twitter thread by Terra says that the purchase marks the start of a diversified and non-correlated asset pool to keep the UST price stable. The Treasury Swap shows Terra's commitment to building and supporting new UST-native protocols within Avalanche. Due to the partnership, the Terra community and builders can access more cross-chain opportunities.
Terra finds major protocols will help the further development of the industry by working together.
Terra blockchain’s Terra USD (UST), is one of the leading stablecoins with a market cap of over $16,7 bln. LUNA, staking and governance token of Terra currently trades at around $101 with a market cap of over $36 bln.
The native coin of Avalanche, AVAX trades at around $87. Its market cap is over $23.6 bln.