Request to Inject Liquidity for Terraswap DEX as Outlined by Proposal 12171
Author: Terraswap
Proposal Type: Community Pool Spend
Status: Draft
Date: 08/May/2025
Receiver: terra132qeqedz0yztuztj0rjav4rzlkashpsdxsmh64jpgp2ul0wdlkzquzvln6 (Multisig wallet from Proposal 12171)
Self-Presentation
Terraswap is a decentralized exchange (DEX) operating on the Terra Classic blockchain. It allows users to swap assets directly from their DeFi wallets without registration or KYC. Unlike centralized exchanges (CEXs) such as Binance or KuCoin, Terraswap does not take custody of user funds—you retain 100% control of your assets.
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Permissionless Access: Trade directly using your DeFi wallet, no intermediaries.
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24/7 Liquidity: Powered by community-contributed liquidity pools, with no trading halts.
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Security & Trust: Based on smart contracts thoroughly audited and battle-tested across Terra Classic DeFi.
Summary
This proposal requests a total of 25,000 USDC and the equivalent of $25,000 in LUNC from the Community Pool to seed liquidity for a USDC/LUNC pair on Terraswap. This aligns with the phased liquidity framework approved under Proposal 12171.
Funds will be deployed via the designated multisig process, and liquidity will be governed by the Terra Classic community with full transparency.
Motivation
Currently, Terraswap lacks a stable LUNC pair, leading to:
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Over-reliance on centralized exchanges for LUNC-stable swaps
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Fragmented on-chain liquidity and higher slippage
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Barriers to DeFi protocols (e.g., lending/borrowing) and arbitrage mechanisms
Introducing a native USDC/LUNC pool improves utility, supports DeFi volume growth, and strengthens ecosystem resilience.
Request Details
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USDC Requested: $25,000
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LUNC Requested: Equivalent of $25,000 at distribution time
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Recipient: Multisig wallet outlined by Proposal 12171
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