Blockchain platform Solana has announced a strategic partnership with Terra. The partnership aims to facilitate the smooth transfer of stablecoins to Solana’s “web-scale blockchain.”
According to a Medium blog post, Solana views the partnership as an important link to its integration into the decentralized finance (DeFi) and stablecoin space.
The payment network Terra currently supports a diverse number of stablecoins via its app CHAI. The app boasts of over $3 million worth of daily transactions and a user base of approximately 1 million. The platform also consists of an outstanding team of developers on top of some of the best investors in the world.
The two platforms will be pulling together their resources to create a unique high-speed token bridge. This token bridge will enable easy transfer of Terra’s stablecoins to Solana’s DApp ecosystem. The first stablecoin token to go live on the Solana blockchain will be Terra’s tokens.
Furthermore, introducing stablecoin on Solana will open the network to more design space for developers. Also, it will provide them with the necessary tools to create groundbreaking innovations and apps, especially those requiring price-stable payments.
Terra, on the other hand, will enjoy an easy and smooth gateway o Solana’s blockchain community.
Smart contracts and wrapped stablecoin.
Together, both Solana and Terra will create two smart contracts namely (contract T and S). According to reports, both the smart contracts are likely to go live this May.
This aims to enable users to ‘mint’ stablecoins by performing a transaction that ‘burns’ tokens of equal value from Terra.
The burn feature sends tokens slated for ‘burn’ to an address from which they can never be retrieved. This ensures that only an equal amount of tokens are transferred between both platforms. The ‘mint’ and ‘burn’ feature works in both directions. So, in other words, whenever Solana ‘burns’, Terra ‘mints’ and vice versa.
Over time, stablecoins have proven themselves to be instrumental in the creation of successful DeFi applications. Adding support for stablecoins alongside Terra is sure to accelerate the growth of Solana’s ecosystem.
According to the blog post, the built-for-speed Solana blockchain platform was optimistic about the benefits both parties would derive from the strategic partnership.
Developed by a former Qualcomm engineer, Solana boasts of pretty fast processing time, recording up to over 50,000 transactions per second. Just last week, Solana’s native token was listed on the world’s largest crypto exchange, Binance. And last month, Solana integrated Chainlink’s decentralized Oracle system.