Terrra protocol is supporting the DeFi ecosystem through its innovative protocol and helping in launching and strengthening DeFi based financial products. Terra is the public blockchain protocol, a programmable money for the internet. Various marquee investors have pledged to invest in the Terra cryptocurrency project for developing various apps and projects that works on company’s blockchain protocol. Some of the global investors who have pledged their investment to the project are Lightspeed Venture Partners, Pantera Capital etc
What makes Terra blockchain unique, is its ability to host myriad algorithm based stable coins on its network. Success of Terra and Luna is linked in a way that more terra is used, more Luna will be worthy.
Terra cryptocurrency project is under the Terraform Labs and Terraform’s tokens are known as LUNA in the market. Terra and Luna are two main protocols of the project. Terra is a stable coin that tracks the price of fiat currencies by pegging terra stable coin to the select currencies e.g., IMF’s SDR linked to terra stable coin will be TerraSDR/SDT, USD pegged to Terra will be TerraUSD/ UST etc. New Terra can be mint by users by burning Luna, which is used for mining. Luna has to be staked by users for validating and verifying transactions.
Terra can be scaled and is specifically designed to maintain price stability irrespective of volatility and demand. Terra protocol has inbuilt monetary policies for ensuring its durability as well as resilience during the time of market fluctuations.
Terra has partnered with South Korean mobile payment service CHAI. By using the Terra blockchain network payment system will be simplified and will lower the transaction fees to merchants.
Terra has partnered with Memepay in Mongnolia for instant money transfer and lending services involving payment for purchase, fuel, cabs etc.
Angel Protocol is built on Terra protocol for creating charity endowments for delivering charity funds through single crypto currency. Astroport is the automated market maker in a Decentralized finance sector part of Terra-Luna ecosystem.
Terra has given over 3500% return is last one year. It has millions of users and billions of dollars of value is locked in terra network. Grayscale has recently invested in Terra as a part of its DeFi portfolio. Grayscale is the World’s largest digital currency asset manager
Digital currencies are shaping the Global investment landscape and Terra – Luna has to be watched for investment in DeFi space. However, at current levels the prices are high and ultimate success of the project will depend on large scale adoption of Terra stablecoins which itself will face a lot of competition from central bank digital currencies.
Bureau Galactik Views