What is Terra (@terra_money & $LUNA)? 🌏 πŸŒ”

Crypto money for users who don't care about crypto. In 5 tweets πŸ§΅πŸ‘‡ Image
Terra is an open and transparent monetary platform built on @cosmos in 2020.

It offers algorithmic #stablecoins & tools to provide users with all they need to manage their money. It's gaining a lot of adoption in Asia-Pacific.

TerraUSD ( $UST) is their biggest stablecoin.
Algorithmic stablecoins are different from centralized ones that hold the equivalent fiat money in reserve (USDT or USDC).

They use automatic mechanisms that maintain the price using arbitrageurs & a 2nd token. Terra uses $LUNA, the network token, to stabilize their stablecoins.
Terra tools:

CHAI payments gateway. It settles in UST & offers lower fees than traditional gateways. Users get some incentives too. It has +2 mn users in South Korea.

MIRROR allows decentralized investment in traditional assets, like stocks. It's big in Thailand.
ANCHOR is a savings and borrowing platform. It pays savers a fixed 20% per year.

They can pay so much because they do over-collateralized lending and then stake the collateral on major PoS networks.

It has more than $350 mn in deposits, $400 mn in collateral & $125 mn in loans.
The Terra ecosystem focuses on utility & ease of use.

All the pieces work together thanks to LUNA. The price of LUNA increases if the demand for UST grows.

All Terra tools are complementary. They push each other forward because there are extra advantages when using all of them.
I'm analyzing crypto projects and concepts in 5 tweets for 50 days straight. Follow @fernando to make sure they show up on your feed. Bonus points for the notification bell.

You can also get them on your email with some extras if you sign up here: getrevue.co/profile/fernan…
Of course, this is not financial advice yada yada yada.

You can lose money even with stablecoins, so think about what you do and make your own decisions.

β€’ β€’ β€’

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More from @fernando

24 Jun
What is Celo (@CeloOrg $CELO $cUSD)? πŸ“²

Crypto payments to phone numbers. In 5 tweets πŸ§΅πŸ‘‡ Image
Celo is a smart contract capable blockchain optimized to easily provide access to financial services with the lowest possible entry barriers.

The protocol includes stablecoins, on-chain governance, and uses phone numbers as addresses.
Users can associate their phone number to an address. Others can see they've done that and can send transactions to that phone number without knowing the address.

Phone numbers are not visible on the blockchain, but the repeated use of an address can itself be a privacy issue.
Read 8 tweets
23 Jun
What is yearn.finance (@iearnfinance $YFI)?

#DeFi yield optimization. In 5 tweets πŸ§΅πŸ‘‡ Image
Yearn Finance is a suite of #DeFi products that provides lending aggregation, yield generation, and insurance on the #Ethereum blockchain.

It launched in 2020 and has more than $3 bn in assets locked.
yVaults are capital pools that obtain a yield from opportunities in the market. Vault strategist & guardian get fees.

By pooling their funds, users share gas costs, benefit from automated processes and rebalancing strategies, and don't need to be proficient in DeFi intricacies.
Read 8 tweets
22 Jun
What is Synthetix (@synthetix_io $SNX)?🦾

Hardcore #DeFi: derivatives on all types of assets on the blockchain. In 5 tweets πŸ§΅πŸ‘‡ Image
Synthetix is a decentralized synthetic asset platform that provides on-chain exposure to fiat currencies, cryptocurrencies, commodities, stocks, and indices.

It opens up endless trading possibilities to people who wouldn't normally have access to trading the tracked asset.
Synthetic assets (Synths) are backed by Synthetix Network Tokens ( $SNX) staked into a smart contract as collateral. The current ratio is 750% and can be changed by governance.

In exchange, Synth stakers get a fixed amount of inflation and fees on the trading of the Synth.
Read 8 tweets

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