Terra Weekly Recap| May 2 – May 8, 2022

This Terra Weekly Recap is solely for informational purposes and does not constitute investment advice. the market had a lot of volatility at the end of the week when BTC corrected sharply and this is also the first time seeing $UST lose PEG after the past few corrections and cause $LUNA to decrease by more than 40%. This event may not be mildly offensive when Tron and Ada announced the launch of their own algorithmic stablecoin along with a saving product with an APY of up to 30%. Let’s take a look at some of the important Terra ecosystem updates over the past week.

Network Growth

Daily Transactions

The total number of transactions on Terra this week was 4,775,246 transactions, a significant increase from last week, approximately 39%. The average transaction per day on Terra is 682,178 transactions.

Unique Addresses

There were a total of 4,040,000 addresses in the Terra ecosystem this week. The number of newly-created addresses was 40,000, an increase of 8.1% compared to the previous week.

Active Addresses

During week 17, there are about 93,783 active addresses every day. This week, however, there are 114K active addresses per day on average, up 21% from the previous week.

Total Value Locked

May 10 when UST lost the peg and dropped to $0.61. A large amount of TVL on Terra has also been withdrawn. TVL this week dropped from $20.52B to $8.93B (May 10). In just 2 days, TVL dropped by 56%. This has never happened before.

Highlight Events

Luna Foundation Guard further bolsters the stablecoin reserve by raising $1.5 billion in bitcoin.

Luna Foundation Guard bought $1.5 billion in bitcoin to boost its reserves for UST, its most popular stablecoin. Stablecoins are cryptocurrencies whose market value is intended to be fixed into a more stable asset. Luna Foundation Guard is getting closer to its objective of amassing $10 billion in bitcoin to support the UST with this recent transaction.

For more information: Click here.

Bastion x Terra

The proposal to encourage the use of UST over Bastion Protocol is ongoing. If this is true, then NEAR will develop USN by allying with UST to have a powerful stablecoin alliance.

Bastion will create a lending market for UST in addition to cUST/cUSDT and cUST/cUSDC Stableswap pools.

Terra will initially match Bastion’s BSTN emissions with UST incentives for the two pools and seed $5m liquidity to the UST lending pool to kickstart liquidity. This is estimated to be $150k per month for a duration of 3 months.

If the pools grow beyond $18mm in combined liquidity, Terra will try to maintain a 20% APR by making up the rest of the rewards. This is necessary to ensure users have sufficient incentives to take on the switching costs, deposit, and trade UST on Aurora as opposed to just recursing on Anchor.

For more information: Click here

Flux and Terra are now building a decentralized future together.

Flux announces partnership with Terra to leverage essential tools and infrastructure to help deploy Terra’s Dapps on the web3. The aim is to bring both Flux and Terra closer to their shared vision of a decentralized future for the benefit of everyone wanting to experience the empowerment that comes with true decentralization.

For more information: Click here

Spotlight Projects

Top 10 Losers of Terra Ecosystem

UST officially lost nearly 40% of its value

On the morning of May 10, UST – The 3rd largest stablecoin in the market lost 40%. Luna Foundation Guard has sold off its BTC reserves to deploy more peg-supported coins to the UST. UST’s loss of peg has largely contributed to this Panic sell.
The situation is similar on March 8, when Anchor lost about 4 billion UST, then UST lost peg. The amount of deposit on Anchor has officially split 2 from the top.
After this event, there will be a large number of users losing faith in Terra as well as Stablecoin UST. This will make LUNA’s future upside momentum disappear.
At the same time, the above event also shows us that using BTC as a reserve to anchor prices for Stablecoins is not guaranteed. Set a warning for all other Algo Stablecoins like USN (NEAR) or USDD (TRON).

SynFutures Collaborates with Terra to Enable More UST Trading Opportunities

Synfuture has teamed up with Terra to bring UST to Synfures as delivery pair liquidity. This alliance enables ETH users to quickly gain access to the most popular stablecoin of the moment, UST. At the same time, people that possess UST on Ethereum can diversify their usage.

For more information: Click here

ANC tokenomics are getting an upgrade

Proposal 26 will bring a huge update to ANC’s tokenomic, with the arrival of veANC – the token representing the amount of ANC locked and will now be used in Anchor’s governance and voting. Accordingly, ANC holders can choose to lock their tokens from 1 week to 4 years to increase the weight of their votes, up to a maximum of 2.5x.

Holders of veANC will have the right to vote on how the amount of collateral LUNA will be swapped into the above derivatives, thereby affecting the rewards derived from creating those derivative tokens.

Anchor Protocol hopes using veANC to determine collateral rates will form an “Anchor Wars” between DeFi protocols, which will seek to collect ANC, lock into veANC, and the incremental voting ratio of collateral that you create, thereby receiving additional rewards. Regular ANC users can also join this fight by delegating veANC to projects.

This is a similar model to the Curve Wars on Ethereum when projects like Convex compete to hold veCRV to vote on the allocation of CRV rewards for themselves. However, it is still too early to say with certainty that Anchor Wars on Terra can create the same effect as Ethereum’s Curve Wars.

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 [email protected].

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

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