Solarbeam announced this Thursday, February 03, through its Twitter account, its new association with Axelar, which allows Terra tokens to connect with Moonbeam.
“The Solarbeam Foundation announces a partnership with Axelar for the launch of Moonbeam. On its way to delivering the vision of powering DeFi with Moonriver and Moonbeam, the Solarbeam Foundation proudly announces a new partnership with the Axelar decentralized network”, he said through an article published on the Medium platform.
According to the company, the Solarbeam Foundation has been planning the first Moonbeam launch for quite some time. At the same time, we have been looking for a continuous two-token model that allows our SOLAR Moonriver and FLARE Moonbeam ecosystems to flourish independently.
In his opinion, Axelar’s vision of a decentralized network brings together the right tools to help connect dApp developers with multiple blockchain ecosystems, applications and users, enabling frictionless cross-chain communication.
“Developers can leverage the powerful Axelar stack to unlock cross-chain composability and liquidity, while building the best platform for their needs. Anyone can join and build on the network, which consists of a suite of protocols, tools, and APIs designed to break down any barriers to cross-chain communication”, he said.
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Terra Community Votes
The company detailed that Terra Protocol, the leading open source and decentralized public blockchain protocol, uses a combination of open market arbitrage incentives and Oracle decentralized voting to create two main tokens: Terra and Luna.
Similarly, he commented that Terra refers to stablecoins that constantly track the price of any fiat currency and can be used to spend, save, trade or exchange on the Terra blockchain. One of the most prominent Terra stablecoins is UST. UST is pegged to the price of the US dollar and boasts a token supply of over 11 billion, making it one of the most widely adopted stablecoins.
According to the company, users mint the new Terra by burning Luna, which is the native staking token of the Terra protocol. It absorbs price volatility from Terra, as well as being used for governance and mining. Users assign Luna to validators that record and verify transactions on the blockchain in exchange for transaction fee rewards. The more Terra is used, the more Luna is worth.
“Terra’s rapidly expanding ecosystem and stable demand have led to increased awareness of Luna. The Terra community, aiming to promote the UST native stable token to other L1 chains, voted to provide UST liquidity and Luna incentives across various DEXes, including Solarflare”, he said.
In his opinion, the proposal seeks to incentivize the GLMR/UST pair with $255,000 in LUNA rewards for 3 months. Solarflare will match this with treasury incentives.
