Terra adds Avalanche to its UST Reserve, the two will partner on a new gaming subnet

The Terra Luna Foundation has added Avalanche (AVAX) to its UST Reserve. Terra has bought AVAX coins worth $100 million making Avalanche the second Layer 1 digital currency to be added to Terra’s UST Reserve.

Terra Luna Foundation via a tweet:

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The largest digital asset in Terra’s UST Reserve is Bitcoin and the addition of AVAX makes the start of the diversification of digital assets supporting UST stablecoin.

Avalanche selected over Ethereum

During an interview with Bloomberg, the founder of Terra, Do Kwon, stated that Terra Luna Foundation went for Avalanche and not Ethereum because the former is experiencing rapid growth and it has a vast fan base.

Do Kwon said:

“Avalanche is still a growing ecosystem…a lot of it is fueled by loyalty to the AVAX token and users feel a lot of affinity with an asset that aligns itself with AVAX. Whereas for the average Ethereum user, aligning yourself with Ether doesn’t really mean that much.”

Avalanche and Terra to partner in creating a new gaming subnet

Besides adding Avalanche to its UST Reserve, Terra has also settled on Avalanche for a partnership to create a new gaming subnet that will connect users and developers from the two ecosystems.

Following the partnership, the team at Terra tweeted saying:

“On the heels of the xAnchor implementation on Avalanche, several more Terra-native DeFi protocols are also under consideration for a cross-chain expansion to Avalanche, including some that the #LUNAtics are anxiously awaiting.”

It then added that “Avalanche’s subnets are a powerful method for building the next generation of scalable Web3 applications within niche use cases.”