“2021is considered to be the growth of the Crypto as it showed extensive gains for almost all the cryptocurrencies in the space. Though there are various currencies that have provided multi-time gains, Terra is one that has provided 100 x gains in a year and is still growing stronger. This makes it an appropriate choice for discussion”.
What is Terra Protocol?
Terra is a leading open sourced and decentralized blockchain protocol that provides for the creation of the algorithmic stablecoins. The protocol uses the open market arbitrage incentives as well as the decentralized oracle voting for creating the stablecoins that tracks the price of any fiat currency in the real time. Terra was launched in the year 2018 by Korean Company “Terraform Labs” which powers its capability to adjust the price according to the price of the fiat currencies pegged to the respective stablecoin.
It’s Rise to Fame
Terra Rose to fame after it became one of the comprehensive protocols to create algorithmic stablecoins that effectively tracks the price of the fiat currency that it is pegged to. The TerraUSD or also called UST is one of the major stablecoins created on the Terra Blockchain and has reached to a rank of 20 among the top cryptocurrencies in the world. LUNA is the native token of the Terra Protocol and for every stable coin created, there is a requirement of burning the LUNA token thus increasing the value of LUNA.
The price of LUNA token has skyrocketed this year and has attracted many investors towards it. In January 2021, the price of each LUNA token was below $1 and at the peak price on 26th December 2021 it reached a staggering $100 per LUNA. A tremendous 100 x gain in a single year is what created ripples in the cryptocurrency markets.
Famous DApps Built on Terra
Apart from Stablecoin creating capabilities, Terra as a blockchain has been used to build many famous DApps that added further to the Terra’s fame:
- Anchor: Anchor is an innovative DApp built on the Terra Protocol that provides users with an ability to create savings accounts, lending opportunities, earn interest on crypto, to obtain block rewards for staking etc. The most disruptive feature of this DApp is that it provides a fixed 20% interest on the crypto savings in a highly volatile crypto market.
- Wormhole: Wormhole acts as a bridge between the Terra blockchain and other blockchains or DeFi platforms. This enables the users with an interactive interface to transfer the crypto asset value between multiple blockchains.
- Terraswap: Terraswap is a DApp built on Terra blockchain that opens the doorways for Terra’s financial market as it provides the users with an option for creating on-chain exchanges for stablecoin assets.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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