1) Terra is often pigeonholed into the L1 conversation bc it happens to be top 3 by TVL
But at the end of the day, Terra has more in common with an application or dApp
It is an app-specific chain selling one product: $UST (and other fiat stables)
🧵👇
2) The protocol exports these stables to other blockchains
We can think of them as “countries” or sovereign states, e.g. Ethereum, Solana, etc. while also selling them within its own territory, i.e., the Terra blockchain
Jul 23, 2021 • 7 tweets • 2 min read
1) I came to this same conclusion when venturing into DeFi early this year. It’s hard to find real moats amongst DeFi apps - $ETH seems like the best bet from a R/R perspective in the Ethereum ecosystem
Then I discovered $LUNA and realized there’s an even better R/R bet than ETH
2) The main drivers I look for when investing in crypto are:
- Product-market fit
- Moat/defensibility
- Value capture
Both $ETH and $LUNA fit the bill for all of these. However, the latter is far more undervalued
Jul 19, 2021 • 7 tweets • 3 min read
1) Always good to have healthy skepticism, but let’s be reminded of the key distinction between Terra stables and $IRON. Why is it unlikely for $LUNA to get rekt in the same death spiral fashion as $TITAN? 👇
2) Do Kwon said it best. Algo stables have often relied on recursive holding incentives, i.e., the stablecoin’s main use case is to farm more of itself.
