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There's actually no doubt that the Terra ecosystem has been one of the latest talks in the crypto space today probably due to the drastic spike in price of Luna (a native coin of Terra Blockchain). Today I'll be sharing with you some important information about Terra blockchain and it's ecosystem. I definitely hope you're really going to find this educative. I suggest you grab some delicious pop corn and juice to digest this lovely content as you read through this post.
What is Terra ?
It will be extremely very difficult to conclude with a single and simple definition of Terra because Terra is actually more than any definition you can give it. Any proper definition you are giving Terra is incomplete without including terminologies like Defi, Currency Stability, Cryptocurrency Adoption, Staking and a Blockchain system. I'll try my best as much as possible to make you understand what Terra is all about and from there you can decide to give Terra a befitting definition of your choice after understanding what Terra is all about.
Terra is a special type of banking system in the crypto space which was founded by Do Kwon and Daniel Shin from South Korean in the year 2018. The system is backed up by an entity or a company known as Terraform Labs which helps in powering the Innovation of Terra Money and to ensure a decentralized price-stable cryptocurrency that can be utilized as a means of payment at massive scale through an alliance of large commerce partners across the globe. This can be also be observed when Do Kwon was interviewed by a crypto analyst and influencer, he made a statement that the Chai payment application which was built on the the Terra blockchain has been its major source of growth in some part of the world such as Korea, China and Thailand due to the fact that consumers and business owners are adopting to purchase products like coffee and other consumer items. I'm quite sure you can see how Terra is really growing faster more than we can ever imagine.
Other Great Features of Terra
As I stated earlier from the beginning of this post, I made it clear that Terra is more than a crypto project you can just give a simple definition because it encompasses of so many features. I'll be using this medium to share with you some other great and important features of Terra and I'm quite sure you are really going to learn something new here about this unique project.
Staking in a layman definition means the act of holding cryptocurrency to earn rewards. There's actually no doubt that staking has been one of the latest trends in the crypto space and this simple method of rewarding users who invest or hold a particular coin has been one of the most adopted techniques by numerous cryptocurrency project.
When it comes to Terra, users are able to stake terra tokens such as Luna by delegating all or part of your holdings and earn rewards by keeping custody of your assets which makes you earn 9% annualized yield from these rewards. This can be done by using Terra Station wallet. You can learn more about staking via https://staking.staked.us/terra-staking.
A simple Analysis on Terra Daily Staking Reward Using Data from Flipside Crypto
Analysis from flipsidecrypto also shows how much reward is being withdrawn each day ranging from October 2020 to August 2021. As you can can see from the image below, it shows that the there was a least staking daily reward during the early days of October 2020 and 03/10/2020 was the day with the lowest (minimum) daily staking reward.
We can also notice from the above data that the highest daily reward was about 2,669,407.84 USD which happened on the 30th of April this year. Other top high payouts include that of 2,242,491.79 USD which was withdrawn on 6th of April this year followed by 1,911,716.61 USD which was withdrawn on 16th of March 2021, followed by that of 1,857,472.00 USD which was also withdrawn on the 18th of March this year, followed by the daily withdrawal of 1,366,426.39 USD which also occurred on the 31st of March 2021 and finally followed by that of 1,235,976.78 USD which happened on 30th of March 2021.
From the above results, we can observe that the daily staking rewards increased drastically from 2020 to 2021 which shows that there was an increase in amount of Terra token staked as the year increased. From future prediction, it shows that there is high chance of having an increased daily rewards above 4,000,000 USD from the year 2022 and above.
The daily staking reward data gotten Flipside Crypto also shows that people tend to adopt staking activities and smart contract crypto related project since the investors or stakers will also be able to make more profit by their staking operation. So I will suggest you join the Terra community and start staking your Terra tokens to earn more rewards.
#2 A BLOCKCHAIN WITH FAST GROWING ECOSYSTEM
Another great features I love about Terra is due to the fact that there are a lot of crypto project building their project on Terra Blockchain. Terra is really one of the fastest growing ecosystem in the crypto space having different partnership proposals from different crypto project. I also love the fact that Terra also enables different crypto enthusiasts to build or develop their project(s) on Terra blockchain. I think it's best if I share some of the top projects from Terra Project Spotlight.
a) LOOP FINANCE
Loop finance was actually known as Trybe before they migrated to Terra Blockchain and the one of the major objective of Loop Finance is to make cryptocurrency and blockchain technology more known to the masses by rewarding content creators with LOOPR tokens. It is also a great to know that Loop is building an AMM DEX on Terra which will be integrated into a beta-stage, non-custodial crypto wallet for which can be used for online shopping and a means to make payment. The wallet will also possess some great features such as staking/farming, swapping and many other great benefitting features for it's users. You can visit https://www.loop.markets for more information.
b) SPAR PROTOCOL
Spar Finance is another project on Terra which acts like a decentralized pool management application that enables passive management of investor liquidity at good promising rate of investment (ROI). This implies that if you are a busy type and you want your money to work for you by investing and earning cool ROI, then Spar Finance is for you. Spar Finance has it's native token known as SPAR which enables you to take part in governance, provision of liquidity and staking operations on Spar Finance. You can visit https://spar.finance/#features for more information.
c) ANCHOR PROTOCOL
Anchor Protocol (ANC) is also another top project on Terra which serves as a decentralized money market between a lender (someone who intends to earn stable yields on their stable coins) and a borrower (someone who intends to borrow stable coins on stakeable assets). Anchor is an open, permissionless savings protocol, meaning that any third-party application is free to connect and earn interest without restrictions. Anchor also has it's native token known as ANC which can be used for governance, staking, saving and lending activities. The coin now worths more than $3 today with a total supply of 1,000,000,000 ANC tokens.
As you can observe from the recent data generated from Flipsidecrypto, it shows that there are more users utilizing Anchor Protocol for lending and borrowing almost every single day which is a sign of good development on Terra.
Some other project on Terra include Pylon Protocol, Harpoon Protocol, Stader Labs, Secret Network, Nexus Protocol, Mirror protocol and many others even though there are still more incoming projects.
Terra Working Principle
Terra helps to keep the stability of it's fiat coins through a process known as seigniorage with the help of Luna. This can be achieved by regulating the amount of Luna supplied when the stable coins rises above it's pegged value.
This simply implies that if 1 UST rises above 1 USD, the algorithm will use Luna to generate more UST which automatically increases the supply of UST and reduces the value back to 1USD and the reverse case occurs when the value of 1 UST declines against it's pegged value. This principle is applicable to all other Terra stable coins such as TerraSDR (SDT), TerraKRW (KRT) and TerraMNT (MNT).
In conclusion, Terra is really one of top crypto project you shouldn't look down upon. Terra Native token (Luna) has a circulating supply of 403,360,309.15 LUNA and a total supply of
994,020,157 LUNA tokens with a current price value above $30. I'm more optimistic about the future and prospect of Terra and I'm quite sure Terra will impact the crypto space more positively more than we can ever imagine.
Thank You for your time and I hope you have a great day ahead with love from @hardaeborla
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