Terra Ecosystem is one of the few ecosystems that does not follow popular trends such as AMM, lending, meme coins, and so on. So, what is Terra’s plan, and will it be successful? We frequently obtain information from the article below.
Terra blockchain was founded by Terraform Labs based in Korea, and supported by Terra Alliance. Terraform Labs was founded in 2018 by Daniel Shin and Do Kwon, a company with a background in e-commerce and finance.
Terra Blockchain is built on Cosmos’ CosmWasm and launched in April 2019, with the first application being TerraKRW ($KRW) – a 1:1 pegged stablecoin with Korean Won, used in payments.
LUNA: Terra’s governance token is LUNA, around it are stablecoins and the most popular today is UST
Backers/Investors: In addition to holdings from major investors such as Coinbase Venture, and Binance Lab, Terra continued to have many subsequent capital calls with huge amounts of up to $1B.
Terra is focusing on using its Stablecoins as much as possible, particularly in practical applications.
Terra has the Chai app in South Korea, which is a popular payments app built on Terra that has over 2 million users and is still growing.
Travala, a travel booking service similar to Booking that offers UST as a payment currency, is another option.
These features are difficult to notice in other Blockchains, which are always competing with less sustainable programs such as Yield Farming or a succession of Fork initiatives that arose during the Defi boom but failed to produce any exceptional products.
Terra ecosystem currently has more than 150 projects under construction on which the main areas include: Stablecoins, AMM DEX, Lending, IDO Platform, NFT Market, Gaming, and many other contents. In this article, I only focus on the main puzzle pieces such as Stablecoin, Payment, Lending, Synthetic, NFT, IDO Platform, and Charity.
First and foremost, Terra’s first product, Stablecoin, is currently in development. Terra also offers several stablecoins that are pegged to various countries’ currencies, in addition to UST. However, UST is the only operational stablecoin on Terra.
Terra’s strategies for UST alone are to concentrate resources on UST. This increases UST’s power and accelerates the ecosystem’s growth.
Proposition #44, with its breakthrough of more than 88 million LUNA to mint UST to build the entire ecosystem, is a huge milestone for $USR. And it’s forcing UST’s capitalization to skyrocket.
This is an extremely developed piece on Terra to encourage people to use Stablecoins, especially UST. In addition, Payment projects are also associated with Anchor, and Mirro to provide more products to users.
Some typical projects such as Chai, Memepay, Pylon Protocol, Subbera, Spaar,…
Anchor is perhaps the most unique protocol in the lending industry ever. With a fixed lending interest rate of 20%, many users come to the Terra ecosystem just for this interest. Specifically, nearly 17b UST are on Anchor, representing more than 90% of the total UST supply.
This is also contributed by projects collaborating with Anchor, making UST more focused on Anchor.
With such a fixed rate of return, the profit from Borrow is much lower than the cost of Lending, Anchor had to be funded twice from TFL to increase reserves, in order to pay interest to User. This is a huge problem for Anchor.
To solve the above problem, Anchor has changed the interest rate anchoring mechanism. Specifically, the lending interest rate will decrease by 1.5% per month if that month Anchor has a loss. This could be a big improvement in Anchor’s performance and I expect it to be around 7% in the future. This is the general interest rate of the whole industry.
Next are Edge Protocol and Mars Protocol, these are two extremely large and potential projects in the Lending array on Terra, in which:
On Terra, Mirro represents the Synthetics puzzle component. In May, Mirror Protocol’s TVL surpassed $2 billion, putting the project in contention for a spot among the top ten TVLs compiled by defillama.com. And that’s the extent of Mirror Protocol’s capabilities. TVL has been steadily declining since May 2021.
Includes projects:
LaunchPAD projects on Terra are not outstanding
NFT was picked up on Terra around August 2021 and officially exploded from about October 2021 until now. Simple NFT projects are appearing more and more with high output layers.
Is a unique field on Terra-Angel Protocol, which took 5th place in the DeFi Connected Hackathon, which I described at the start of the essay.
The Terra Charity Alliance was established as a result of the development of this puzzle piece from the fact that there are many projects prepared to share a profit for charity.
So far, Terra has focused on protecting and applying UST very aggressively to bring this stablecoin everywhere. In my opinion, these steps are completely reasonable as Terra always listens to users and investors to adjust its direction to suit the new situation of the project.
With past achievements, I believe that Terra is fully capable of achieving its goal in 2022. Focusing on new strategies such as applying and protecting UST to create a trust for investors private and users. Besides, important pieces on Terra still play an important role in the development of the entire ecosystem.
Find more information about Terra
Website: https://www.terra.money/
Whitepaper: https://docs.terra.money/
Twitter: https://twitter.com/terra_money
Telegram: https://t.me/terra_announcements
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.
Ken.N
Coincu Ventures
George Town, Grand Cayman, 22nd November 2024, Chainwire
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