Thread by @ChorusOne

It's safe to say that @terra_money had a wild week:

✅ $LUNA hits an ATH
✅ TVL hits an ATH
✅ @stablekwon wants Terra to become the largest holder of #bitcoin after Satoshi

But what is beneath the price action and why does everyone want in? Let's explore 🧵

It's no secret that to take blockchain to the masses, complexity needs to be abstracted away into simplicity. And @terra_money has done that time and again.

The key seems to be = Simple UX + Real-world use cases + Incredible innovation.

Before we explore some of the projects on Terra, we need to first understand the relation between UST (algorithmic stablecoin) and LUNA (staking & governance)

Here's an image from our 'Annual Staking Review: 2021'

Full report here - chorus.one/research/staki…

This unique mint-burn mechanism is what makes Terra special.

High demand for $UST creates deflationary pressure on $LUNA and vice-versa.

$UST is also the most used decentralized stablecoin with 24H volumes increasing by almost 4x this year alone!

Its growth is particularly impressive when compared to other stablecoins.

(h/t @MessariCrypto)

And the answer to what's backing this rising demand lies in a multitude of products that were launched in the last few years.

Let's explore chai.finance for eg.

P.S - Some of the working mechanisms may have changed/stopped recently due to regulatory/other reasons.

CHAI is a payments service product like PayPal. Thousands of people in South Korea use it daily to buy their coffee and other items everyday ☕

The best part? The users and merchants who used it HARDLY KNEW that it's blockchain-based 🤯

Complex back-end but a simple front-end.

Let's take an example -

You bought a cup of coffee for 4000 KRW through CHAI.
4000 KRW was then converted to 4000 TerraKRW.
4000 TerraKRW worth of $LUNA was burned.
4000 TerraKRW was finally converted to 4000 KRW and went to the merchant.

This took seconds and happened at a fraction of the cost compared to payment processing companies.

memePay, a similar application, was also launched in Mongolia for P2P payments, powered by @terra_money, but unbeknownst to the users.

This approach of 'complex but simple' is also seen with @anchor_protocol which wants to be the 'Stripe for Savings' in Crypto.

Users can dabble in saving and borrowing in an easy fashion.

You can not only deposit UST and get a decent ~20% but you can also borrow against your $LUNA or $ETH & earn $ANC rewards for that too!

In fact, @ChorusOne is also working with @LidoFinance to enable @anchor_protocol users to borrow against their $SOL

https://twitter.com/LidoFinance/status/1508775969846435842?s=20&t=Vd1n-MAM1wAL_7WMreBz5Q

Anchor is the most popular project in the @terra_money ecosystem and for the right reasons.

@stablekwon has iterated multiple times that he wants to make Anchor the best savings product in the market and it's doing just that.

Are the ~20% on $UST deposits sustainable?
Can $UST lose its peg in the case of a drastic sell-off?

These concerns are valid and hence @LFG_org has been recently building a #bitcoin reserve.

https://twitter.com/danku_r/status/1509173542268645377

But why #bitcoin?

Hear it straight from @stablekwon

(h/t @laurashin & @Unchained_pod)

There are many other high-value projects in the @terra_money ecosystem:

@astroport - AMM
@mirror_protocol - Synthetic assets
@staderlabs - Staking

amongst others.

Terra's vision is built for the masses and to further raise its brand quotient, they even announced a partnership with @Nationals.

Get ready to see @terra_money in the next game ⚾

https://twitter.com/terra_money/status/1491461017884413963?s=20&t=l9OhJuBMwmZZACijxFyIdQ

If you aren't a #lunatic yet, there's still time. Go ahead and stake your $LUNA to @ChorusOne, then sit back and watch them grow 📈

If you're a beginner to staking, here's a step-by-step guide to stake them:

guides.chorus.one/cosmos-sdk-cha…

🌕🌕🌕