Dear Tokeners,
Welcome everyone once again, today we are going to see all the characteristics that surround a great project that has increased its value by no more and no less than 9,000% in the last year. Today we will deal in depth with Terra (LUNA).
We will start by knowing what Terra intends to contribute to the ecosystem, the team that founded the project and what makes Terra unique in this wonderful and great cryptoverse.
Terra is defined as a blockchain protocol that uses stablecoins pegged to fiat currencies in order to power stable price global payment systems. According to their whitepaper, Terra combines price stability and wide adoption of fiat currencies with the censorship resistance of Bitcoin (BTC) and offers fast and affordable deals.
Development of Terra started in January 2018, and its mainnet was officially launched in April 2019. As of September 2020, it offers stablecoins pegged to the US dollar, South Korean won, Mongolian tugrik, and basket. Foreign Exchange Special Rights of the International Monetary Fund, and intends to deploy additional options.
Terra's native token LUNA is used to stabilize the price of the protocol's stablecoins. LUNA holders can also submit and vote on governance proposals.
Who are the founders of Terra?
Terra was founded in January 2018 by Daniel Shin and Do Kwon. The two envisioned the project as a way to drive rapid adoption of blockchain technology and cryptocurrencies through an approach based on price stability and usability. Kwon took over as CEO of Terraform Labs, the company behind Terra.
Before developing Terra, Shin co-founded and ran Ticket Monster, also known as TMON, one of South Korea's leading e-commerce platforms. He later co-founded Fast Track Asia, a startup incubator that works with entrepreneurs to create fully functional businesses.
Kwon previously founded and served as CEO of Anyfi, a startup that provides decentralized wireless mesh networking solutions. He has also worked as a software engineer for Microsoft and Apple.
What makes Terra unique?
Terra seeks to differentiate itself through the use of stablecoins pegged to fiat currencies, stating that it combines the borderless benefits of cryptocurrencies with the daily price stability of fiat currencies. It maintains its one-to-one pegging through an algorithm that automatically adjusts the stablecoin supply based on demand. It does this by incentivizing LUNA holders to trade LUNA and stablecoins at profitable exchange rates, as needed, to expand or contract the supply of stablecoins to meet demand.
Terra has established several partnerships with payment platforms, particularly in the Asia-Pacific region. In July 2019, Terra announced a partnership with Chai, a South Korean-based mobile payments app, in which purchases made with the app on e-commerce platforms are processed through the blockchain network of Terra. Each transaction is subject to (on average) a 2% -3% commission charged to the merchant.
Additionally, Terra is supported by the Terra Alliance, a group of companies and platforms that advocate for the adoption of Terra. In February 2019, the company announced that they were members of the alliance of e-commerce platforms from 10 different countries, representing a user base of 45 million and a gross merchandise value of $ 25 billion.
How is security on the Terra blockchain?
Terra's blockchain is secured by a Tendermint-based consensus proof-of-possession algorithm, in which LUNA token holders stake their tokens as collateral to validate trades, receiving rewards in proportion to the amount. of LUNA tokens put into play.
Token holders can also delegate other people to validate transactions on their behalf, sharing any income generated. Terra also provides additional guidance to validator nodes on best practices to help keep the network secure.
In May 2019, shortly after Terra's mainnet went live, blockchain verification and penetration testing company CertiK completed a network security audit. He examined the economic model to test it against market manipulation, its architecture, and its coding language. CertiK found that Terra's network modeling and mathematical reasoning was considered sound, though they did not comment on the performance of the blockchain.
Terra ecosystem
Terra has a powerful ecosystem that includes both DeFi and NFTs. Today it is the second blockchain by blocked value (TVL) after Ethereum, surpassing even Binance, Avalanche or Solana.
Stay tuned because in a future article we will talk about the DeFi ecosystem on Terra.
At the time of this writing, the locked value (TVL) on the Terra blockchain is nothing more and nothing less than 17 billion.
Terra's possibilities thanks to its stablecoins are immense. In this sense, it is interesting to see how some of the main DeFi protocols have been deployed on this network. Here we show you some of the most important DeFi protocols within the Terra ecosystem:
Anchor Protocol
Anchor Protocol is a liquidity market where you can use UST stablecoin. In Anchor Protocol you can make loans, exchanges, obtain returns at a fixed interest rate based on the trends that occur within the market.
Mirror Protocol
Mirror Protocol is a project focused on creating an exchange of synthetic assets that replicate in real time certain shares that are listed on the stock market. And as if that were not enough, within Mirror Protocol we have the option of farming with stablecoins in said stock assets. The DeFi market has grown so much thanks in part to its decentralization. Mirror Protocol provides a wonderful option to acquire certain stocks for those people who have not been able to access said market.
Here I show you an example of Google's action with an APY of 4%.
Pylon Protocol
Pylon Protocol is defined as a decentralized financing framework (DeFi) for equity-protected and performance-based products and services. Built by Terraform Labs (TFL) on the Terra blockchain, Pylon introduces a new mechanism for the alignment of long-term incentives between users and service providers in which payment is made through cash flow rather than cash. initial expenses.
Pylon aims to align incentives between payers and beneficiaries, consumers and creators, sponsors and artists, investors and entrepreneurs, among many other relationships. The protocol is maintained by several independent platforms and is governed by the holders of the native Pylon governance token.
Pylon, among many other things, also offers us a launching platform for projects based on the Terra blockchain called Pylon Gateway. Investors deposit Terra stablecoins into a project of their choice to obtain tokens from that project and governance rights.
Here's an example from a more recent release.
Random earth
It is one of the platforms dedicated to NFT on the Terra blockchain.
Random Earth integrates decentralized limit order books to Terra and allows the creation of orders ranging from $ UST to GalacticPunks NFT.
To facilitate high-performance trading, orders are signed and sent off-chain to a matching engine and executed on a robust on-chain settlement contract. Random Earth's core technology will enable the development of exciting new products on Terra and usher in an explosion in real-world use.
Here you can see an article about it.
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