All the Details About Terra (LUNA)! Terra (LUNA Coin Review)

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Terra’s local stake token, LUNA, was one of the best performing cryptocurrencies of 2021 with a gain of 13000%. Terra also surpasses Binance Smart Chain (BSC) in total locked value with $17.62 billion, the second largest immediately after Ethereum DeFi it has become his chain. So how well do you know the Terra (LUNA) ecosystem?

Terra (LUNA)

Most of this growth, Terrait originates from Terra’s ecosystem with its community of developers who are constantly building decentralized applications on top of But before the hundreds of applications built on Terra, at the beginning of 2021, only Mirror Protocol and Chai were present in the ecosystem. Even this detail is enough for us to understand how fast the ecosystem is growing.

Mirror allows users to create synthetic assets by simulating the price behavior of traditional and digital financial assets. Investors use Mirror to gain exposure to these sundays without having a mainstay asset. Chai, on the other hand, is a payment application operating in South Korea with more than 2.5 million users. These applications were created on the basis of the real-world utility, providing practical use for users and furthering the adoption of cryptocurrency.

The Anchor Protocol

The Anchor Protocol, the third basic implementation of which was launched only in March 2021 on the main network, but quickly became a popular yield farming protocol in the field of decentralized finance (DeFi). Anchor, the equivalent of a LUNA or by locking Ethereum (ETH), Terra’s stablecoin is designed to get a return on TERRAUSD (UST).

By now, The AnchorAccording to the official website, the total collateral value locked in the market has already reached $ 5.2 billion, with a growth of 4.375% from the first day of its release. The increase in collateral coincides with the expansion of the user base, and about 440 users participate in this project every day. It is growing about three times faster compared to Mirror. It can also be seen that the increase in the user base is growing along with the gradual increase in Terra’s transactions.

Increase in Projects in the Terra Ecosystem

Following the core applications, the game in the Terra ecosystem, the metaverse, DeFi and a lot of projects were born in other categories. In addition, there are multiple dec-chain communication protocols that allow Terra assets to be freely transported to other chains. For example, DEC Solana bridge protocol facilitates asset transfers between Wormhole v2, Terra, Solana, Ethereum, BSC, Polygon, Avalanche and Oasis. This is Terra’s Columbus-5 it became possible with the upgrade of the main network.

Developers have also created projects with basic Terra applications. An example is Orion Money, which uses the Anchor Protocol to get higher returns for other stablecoins such as Tether (USDT), Binance USD (BUSD), USD Coin (USDC) and Dai. It does this by using ETHANCHOR, converting stablecoins into Wrapped TERRAUSD (wUST), and then depositing them to Anchor, where the APY is up to 20%.

Why did Terra (LUNA) Grow Up?

In July 2021, Terra blockchainTerraform Labs, the company behind the, has raised $150 million from various investors, including Arrington Capital, Lightspeed Venture Partners and Pantera Capital. The funds were intended to incubate projects on Terra, which, probably, stimulated further development.

But Do Kwon, the founder and CEO of Terraform Labs, believes that this is something more fundamental. In an interview, Kwon said that what feeds Terra’s strong community is based on the concept of decentralized money, which Terra is able to achieve with its algorithmic stablecoins.

Terra has a family of stablecoins that are pegged to various fiat currencies such as the US dollar, the Euro, and the Korean Won. In addition, it is fixed in the Special Drawing Rights of the International Monetary Fund TerraSDR it has a flagship stablecoin called. The price stability of stablecoins such as UST is algorithmically maintained, revealing incentives for users to respect the stablecoin constant through arbitrage opportunities.

The algorithm did just that, maintaining the dollar constant at times when the UST deviated from it. Such a design makes Terra’s stablecoins more decentralized, and probably stablecoins eliminates the regulatory concerns that surround it. And according to Kwon, this is what excites the Terra community.

Does Terra Have a Future?

Last year Terraform Labs the $150 million raised by Terra is the first batch of funds dedicated to nurturing Terra’s projects. In December 2021, another fund of $ 50 million was launched by the Hong Kong venture capital firm Chiron Partners, which is further divided into supporting projects.

On January 7, an offer of $ 139 million was announced, and it is desirable to create more UST usages. The fact that the ecosystem is growing so fast and stablecoin for export LUNA by burning it, investors can also make serious profits in the future.

On the contrary, the US is waging war on decentralized stablecoin startups, and this fear can go as far as banning it in many regions of the world.

Disclaimer Of Liability: The information contained in this article absolutely does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and they should conduct their transactions in accordance with their own research.
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