If you’re looking for a stablecoin that is backed by real-world assets, Terra (LUNA) may be a good option for you. Terra is a blockchain project that aims to provide stability and liquidity to the global economy. In this cryptocurrency overview, we’ll take a look at some of the key features you need to know before buying Terra (LUNA).
1. The Terra Protocol
The Terra protocol offers multiple stablecoins tied to different currencies. This means that if one currency experiences volatility, the others may offset it. Stablecoins are more likely to succeed as a method of transferring funds and purchasing goods and services than their volatile counterparts because, in general, they keep the same price.
2. Price Balance
The Terra Luna tokens help balance out its stablecoin’s prices. Luna tokens are also used for staking and governance of projects. Here’s a hypothetical example – UST, Terra’s U.S. dollar stablecoin, is in demand. And the price grows up to $1.05 while its actual price should be $1. To compensate for this, Terra must increase the amount of UST tokens in circulation.
You can always check its current price on the exchange you use. For example, on https://changelly.com/buy/luna, you will find all the necessary information and conduct a transaction fast and safely.
Stakeholders may stake their tokens. In return, they receive a portion of the transaction fees that are collected by Terra. Staking is a way to earn passive income from your investment. It’s important to note that staking is not required in order to hold or use Luna tokens. However, it is necessary if you want to participate in governance.
Governance on the Terra network is performed by a group of validators. These are the people who run the nodes that keep the network running. Validators are chosen by the community through a process called voting. Anyone who holds Luna tokens can vote for the validators they want to see elected. The top 20 voted-for validators become part of the Terra Council. The Terra Council decides on matters such as which assets to add to the network and how to spend the block rewards.
4. South Korea
Terra is mostly popular in South Korea. However, it is available to anyone in the world including the USA/EN. The project has a strong focus on the Asian market. Terra’s stablecoins are currently pegged to the following currencies: U.S. dollar (UST), Korean won (KRT), Chinese yuan (CNYT), Japanese yen (JYNT), and Singapore dollar (SGDT).
The team plans to add more assets in the future, including but not limited to the Hong Kong dollar (HKDT), British pound (BPT), and Euro (EUT). You can buy Terra stablecoins on exchanges such as Binance, Upbit, Huobi Global, OKEx, and Kraken.
On March 17, 2021, Terra launched a savings and lending protocol called Anchor. The protocol allows users to earn up to 20% interest on their UST deposits. The Anchor Protocol is a DeFi protocol that is built on the Terra blockchain. It uses smart contracts to mint and burn tokens in order to stabilize the price of UST.
The Terra blockchain ranks in the top five in terms of revenue. Blockchains that generate more revenue are more likely to be able to pay for their own development and continue to grow. Terra generated $27 million in revenue in 2020. This is a significant increase from the $12 million it generated in 2019.
Buying Terra (LUNA) Can Be a Challenge
While the Terra protocol offers multiple stablecoins, buying cryptocurrency can be a challenge. The project is not listed on major exchanges such as Coinbase or Gemini. However, it is available on a few popular platforms that offer to exchange cryptocurrency such as Binance, Upbit, Huobi Global, OKEx, and Kraken. You can also buy Terra (LUNA) on decentralized exchanges (DEXes) such as Uniswap and Balancer.
If you want to invest in Terra (LUNA), it’s important to do your own research. This is a high-risk investment, and you should only invest what you’re willing to lose. That being said, the potential rewards could be great. Terra (LUNA) is a promising project with a lot of potential. Only time will tell if it will succeed.