Thread by @TerraSquadUST

How a super smooth brain's journey down the @terra_money rabbit hole 🐇 convinced me this ecosystem is the real "Future of France" 🧵👇

1/ I was made aware of @terra_money back in Feb, but never started really exploring it until about a month and a half ago. And what I've seen so far, has completely blown my mind 🤯

2/ The main thing that has me so boolish about this ecosystem is that the developers clearly understand that in order to gain mass adoption, you CAN NOT buidl things just “for crypto users”.

That was v 1.0 (bitcoin) and v 2.0 (ethereum).

3/ This isn’t a knock on them either - they started the party and onboarded the early adopters. I have the utmost respect for the way they have paved. They have 1,000s of brilliant devs, and there's a reason they are at the top...for now.

4/ The next step though imo, is getting people in the “real world” to see the immense value that blockchain technology can provide - WITHOUT them having to even know that this value is being delivered by it.

5/ A great example of this is the chai.finance which 2.4mm Koreans are currently using to exchange value, and pay for things IRL using $UST.

6/ Most of these users probably have no idea about the underlying mechanisms that allow them to do this, nor do they need to know or care.

7/ They just know it’s simple, the UI/UX is friendly (aka similar to things they are already used to using), and it does what they need it to do.

8/ As big of a step as @MetaMask was in “simplifying“ the use/transfer of erc20 tokens, have you ever tried explaining to your normie friends... over the phone... how to use it?

And of course, the worst part is - the cost of making even one single mistake is ginormous.

9/ Funds stuck in limbo/gone forever. 😳

This is why I am so very bullish on $LUNA, $UST, and the entire @terra_money ecosystem, and how they are building for mass-market adoption in the real world.

10/ For example - @anchor_protocol can literally be plugged into the backend of almost any existing #fintech app, providing their users with a 1,900x better APY than any legacy bank’s savings account.

11/ (Just looked at Chase, and they are offering a whopping 0.01% APY for savings accts.) 🤮

Yes - sure there is risk - But is it 1900x more risky? I doubt it

12/ . Plus, much of it can be mitigated by having insurance coverage baked in, using protocols like @Bridge_Mutual and $UST peg insurance from @UnslashedF at incredibly reasonable rates

Is it the FDIC? No.

13/ But consumers will tolerate it if it means they can double their money every 3.78 years (19ish% APY). To us degens, this is shit, but to the average consumer, it's a VERY powerful value proposition.

14/ Now - think about all the the giga-brained dev teams building the #neobanks who move fast, and are open to new ideas, products and integrations with interesting tech that will help them serve their users better...

15/ Do you think the legacy banks are directing their devs with that philosophy? No. Their devs are building products the gray-haired suits on the 63rd floor have concocted to suck the money and life out of every customer they have.

https://twitter.com/danheld/status/1418560796922163201

16/ But please, Mrs. Warren - "save us" from the #shadowysupercoders 🥴 and let us return to the loving arms of Jamie Dimon, and friends.

I digress...

The reality is, this new era of finance is scaring the fucking shit out of them.

17/ And they are scrambling to exercise any possible method of control over it.

But some of the smartest coders in the world have already realized how big this is gonna be.

18/ And the wrinkliest of brains 🧠 are throwing time, talent, and money at it because they can see the vision of what it is today, and what it will be in the not too distant future

19/ Add it all up, and we now have what the great Charlie Munger likes to call a Lollapalooza brewing, with the teams building on @terra_money leading the charge to onboard "non-crypto" consumers.

20/ Amazing thread by @FynnToTheMoon showcasing many of the projects currently being built:

https://twitter.com/FynnToTheMoon/status/1420369205451362307

21/ $ETH maxis will hate this, but ask yourself this: Why, in 7+ years of it’s existence, have no real consumer facing dApps been built on Ethereum?

22/ I'm not talking about Visa settling transactions on the Ethereum blockchain, I'm talking about consumer-facing app interfaces whether it's SaaS, payments, etc.

Why? Because the ETH price, and gas prices are not stable, and to the avg consumer, it's hard to use.

23/ Maybe this will be fixed with London, maybe it won't. But you can’t have the avg user sign up for a SaaS, and expect them to understand that the recurring price is...variable?🤨

24/ Having to explain that to a potential user adds a thick layer of friction to getting new sign-ups, which would dramatically increase the cost to acquire a new user.

But what about $DAI?

25/ Well, from what I understand, $DAI is now backed by something like 55% $USDC. Which, itself is backed by dollars and baskets of securities.

You now have 2 layers of risk.

26/ And even though it began as decentralized, it is now facing a very real risk with the recent talk of fiat-backed stablecoin regulation coming.

27/ Plus, there has never really been a way to "bet on" the growth of a stablecoin (cheers to @MessariCrypto for pointing this out to me)

Enter... $UST.

28/ Not only is it decentralized, but it's innovative mechanism using $LUNA 🌖 to keep it pegged, is an idea which I believe is one of the most (if not the most) innovative mechanisms in the history of money.

https://twitter.com/stablekwon/status/1378835245538025478

29/ Why do almost all algo-stables fail? Because of a lack of actual utility for the stablecoin.

30/ The reason the $TITAN/$IRON fiasco that "rugged @mcuban" happened was because $IRON served no purpose except degen yield farming (though it sure was a helluva run while it lasted!)

In order for an algorithmic stablecoin to succeed, it has to get big.

31/ And to get big enough, it has to have real-world utility.

And the teams developing products around this system can clearly see the whole forest. Teams like @kashdefi, @yottasavings, @SuberraProtocol (and plenty of others) are building for the "real world".

32/ Not to mention - I've never seen this level of collaboration 🤝 before either. There are almost no upcoming projects which are just “standalone” dApps. A rising tide lifts all boats.

33/ Almost every single one of the projects I've seen in development is either built on, or integrated with other projects within not only the @terra_money ecosystem, but across other chains as well. And every single one of them is powered by $UST.

34/ And as all the #LUNAtics out there already know, the more utility UST has, the more is needed.

Meaning more 🔥🔥🔥of $LUNA (if you want to know how this works, check out the video here: ).

35/ And if all that wasn't enough, there's the #columbus5 upgrade coming soon which adds even more upside to the whole system. Killer thread by @sunjae_han about this here:

https://twitter.com/sungjae_han/status/1419013165984088064

36/ And finally, the most important part of all this imo, is the insanely great community that has been built around this vision. #Terrans, #LUNAtics, whatever you want to call us.

37/ It is the most positive, friendly, smart and loyal community Ive seen - not just in crypto, but anywhere.

Just one example of how amazing this community is can be found by looking at how @angelprotocol - "A Terra-based protocol to create perpetual charity endowments"

38/ The story of it's inception is just one of so many reasons this community is special: medium.datadriveninvestor.com/terra-money-a-… h/t @ajcheshier

39/ Once you see it, you can’t un-see what is happening here. And why I believe my frens - @terra_money could actually BE the future of finance.

40/ Oh, and this isn't just my opinion either - some very big brains 🧠 with very big pockets 💰 just bet $150mm on it:

https://twitter.com/terra_money/status/1416066201189556224