Solana partners with Terra to bring stablecoins in its network
Fri, 17 Apr 2020, 01:40 am UTC
Web-scale blockchain Solana is partnering with Terra to bring the decentralized stablecoin to its ecosystem.
Solana announced its new partnership on its blog just a week after its token was listed on Binance. The two firms are planning to build a new high-speed token bridge to make this possible.
“Together we’re building a new high-speed token bridge that facilitates the transfer of Terra stablecoins into Solana’s dapp ecosystem,” Solana wrote.
“Terra’s tokens will be the first stablecoins on the Solana network. By bringing stablecoins onto our network, we aim to dramatically expand the design space for developers, opening the door to novel applications that require price-stable payments. Similarly, and by the same token, we hope to support Terra’s expansion by creating a seamless gateway to our developer community.”
Solana will be building two smart contracts (contract T and contract S) to facilitate the bridge and each will be deployed on both platforms by May 2020. The bridge will leverage a mint-and-burn model via the mirrored smart contracts and users will be allowed to mint specific Terra tokens on Solana by calling a burn transaction on contract T and minting a transaction on contract S.
Once the Terra tokens were burned using contract T, a proof would be submitted to Solana. The process creates a two-way warp and works in both directions.
Solana believes that stable payments are the foundation of the most successful DeFi applications. It aims to speed up the DeFi ecosystem within its platform by supporting the Terra stablecoins.
“Beyond the bridge, this is an important step for both communities, as we also envision a close partnership moving forward. We are encouraged by the support that Terra has shown Solana during the time we’ve worked together and expect big things to come from this partnership,” Solana wrote.
Meanwhile, in 2019, Solana secured $20 million in a Series A funding to develop a blockchain designed to operate on the world wide web. The funding was led by Multicoin Capital with the participation of Blockchain VC, Slow Ventures, and NEO Global Capital.
<Copyright © TokenPost. All Rights Reserved. >