Thread by @FynnToTheMoon

Terra Ecosystem Overview: Why I am bullish...

The best decentralized, algorithmic stable coin: $UST

A deeper dive into Terra: 👇

In September of 2020, $UST was launched. Since then, it has increased drastically in market cap and is now around 2 billion in circulation. It has risen to the top 5 of all stable coins in this short period of time and doesn't plan on stopping. Here's why

$UST is the only algorithmic stablecoin in the top 5 and continues to prove its worth. Over the course of its existence, it has shown to remain relatively stable even throughout the worst market dumps and crashes.

How does it work?
$UST's peg is maintained through its arbitrage function with Terra's native token, $LUNA.

Whenever 1 $UST < $1, $UST holders may exchange 1 $UST for $1 worth of $LUNA.

Whenever 1 $UST > $1, $LUNA holders may exchange $1 worth of $LUNA for 1 $UST.

Here is a great video explaining how the $USt peg is held and how everything in the back end works:

When Luna is swapped for UST, a certain % of that Luna is burned while the rest piles up in a community pool, thus making $LUNA a deflationary asset. This process is called seigniorage. Seigniorage is the recaptured value achieved through minting Terra in a Luna: Terra swap.

But...there have been numerous algorithmic stable coin attempts in the past. What sets $UST apart from the rest?
1. The creation of dApps on Terra to facilitate more $UST demand
2. Linking $UST with Terra's validators (miners) through $LUNA

The key is: REAL $UST demand

$LUNA not only acts as a $UST stabilizer but also acts as a staking token. People who own Luna can simply stake and receive weekly airdrops and staking rewards.

See this thread below to see ALL confirmed airdrops for $LUNA stakers in the near future:

https://twitter.com/FynnToTheMoon/status/1400429272527998976?s=20

There are currently OVER 100 validators that you can delegate your $LUNA to.

Some things to consider while choosing your validator are: uptime, commission, return, and MOST IMPORTANTLY, safety.

Here is the top 10 by voting power:

ANOTHER major factor that sets Terra apart is:
The protocols building on terra that ultimately create more $UST demand.

Here is a list of ALL Projects building on Terra:

https://twitter.com/FynnToTheMoon/status/1400105213709672450?s=20

$UST has many use cases that make it special. As previously stated, there are tons of projects building on Terra. For them, the main goal is to bring more people to the Terra Ecosystem, thus increasing demand for $UST. Currently, it primarily consists of $MIR and $ANC

Mirror ($MIR) is a synthetic protocol that allows access to various real-world assets and is accessible to ALL.

Anchor ($ANC) is the so-called "Stripe for Savings". Anchor offers up to 20% APY on all $UST deposits.

MIR token holders can stake them and receive rewards. They can also vote and participate in decision-making for the development of the platform as well as add MIR tokens to liquidity pools along with other tokenized assets for higher returns.

Anchor protocol is not the first decentralized lending platform, but it is leading in terms of profitability, providing UST token holders with the opportunity to receive high income on deposits.
The main risk in using Anchor is the possibility of collateral liquidation.

Real-world Use:

CHAI is an e-wallet for fast and cheap mobile payments in Korea, which has become one of the main growth drivers of the Terra ecosystem. According to CHAISCAN, the wallet already has over 2.4 million users with $1.2 billion in payments per year.

Conclusion:
Unlike most other stablecoins, TerraUSD ($UST) is highly scalable, more decentralized, and is the leading algorithmic stable coin and will change the future forever...

If this doesn't make you bullish on Terra (LUNA), then I can't help you here. Good Luck!

I could go on and on forever about Terra, but I'll leave this here for now. Full Terra Ecosystem Overview Article coming soon...
@terra_money