SPECIALIZED LAYER 1 SET UP FOR MASSIVE GAINS! WHY TERRA HAS THE MOST POTENTIAL



✅ Follow EllioTrades on Twitter: https://twitter.com/elliotrades

The Terra ecosystem powered by the LUNA cryptocurrency is heating up, and watching the explosive growth of updates and adoption in recent weeks has been fascinating. Let’s have a closer look at what the still widely overlooked ecosystem holds in store and where it is heading.

The Terra ecosystem is highly fascinating, as it chose a completely different approach from most other layer 1 blockchains, which aim to be the next “Ethereum killer.” Instead, the Terra project, founded by Terraform Labs in 2018, chose a unique approach that differentiates itself from the fierce competition in the smart contract space:

They aim to build an ecosystem around the Terra blockchain (and beyond), specifically targeting DeFi applications and basing their approach on a completely interoperable and cross-chain vision. Terra transactions are usually settled within six seconds and only cost a few cents to execute, making Terra ideal for payments and other financial applications.

Terraform Labs stated: “We believe the layer 1 will also be decentralized — there will be a multitude of blockchains”. The narrative that one blockchain will win it all is far from what Terra sees as the future of blockchain,

*What the Terra Ecosystem Offers Today*

Besides the Terra blockchain and its native cryptocurrencies LUNA and UST, which are the backbone of the Terra ecosystem, a lot is happening in the overall Terra ecosystem. It already contains a suite of products ranging from CHAI for payments, Mirror for investments, and Anchor for savings.

Powered by Terra’s technology, the Chai wallet has already gained more than 2 million active users (as of September 2020). It is widely integrated with the leading e-commerce merchants in Korea and South-East Asia and is probably one of the blockchain applications with the most mainstream adoption on the planet.

Mirror Protocols is a synthetics protocol for on-chain price exposure to real-world assets such as stocks. It’s also referred to as the “Synthetics of Terra”.

Mirror allows investing in stocks like Tesla, Coinbase, Microsoft, or even GameStop via synthetic tokens, called mAssets. Mirror smart contracts are built on Terra and Cosmwasm, and leverage UST as the collateral asset. mAssets are also available on Ethereum via the Shuttle.

Anchor Protocol is a highly anticipated savings protocol that launched in March of this year.

Currently, users can earn a comfortable 20 % yield on UST, which represents – together with the low gas fees and excellent.” user experience – one of the most attractive DeFi products in the space.

*Outlook*

While the prices of LUNA, ANC, and MIR have already skyrocketed this year, the overall ecosystem is still set to experience some explosive growth in the coming months.

The fact that LUNA is directly coupled to the success and adoption of UST (as with every minted UST, LUNA gets burnt) and that the demand for safe algorithmic stablecoins is set to continue to rise exponentially makes me quite bullish on LUNA.

With its chain agnostic approach, UST seems to be perfectly positioned to gain traction in the DeFi space further and even leap more into the mainstream – just look at the explosive adoption of Terra-based stablecoins in Asia already. Therefore, LUNA as the underlying asset has potentially a very rosy future lying ahead.

Also, I’m incredibly excited about new Terra projects launching, as there are many in the works right now. I am following these closely.

For everyone who wants to play it safe: The current 20% fixed APY on UST available on Anchor is a very attractive option to diversify – not just from the volatility of LUNA and other cryptos – but also from DeFi yields that are commonly highly dependent on market sentiment.

Timestamps
0:00 DeFi Summer 2.0
1:10 Terra Overview
1:45 UST Overview
2:40 The problem with DAI
5:00 Minting UST with LUNA
5:30 Ecosystem Overview
6:30 Trifecta Collab
7:00 Mirror Overview
8:00 Support EllioTrades
8:30 Each component Explained
9:30 Compounding Interest
11:00 Pooling Opportunities
14:30 Massive Ecosystem
15:20 Why this is BIG
17:00 The Takeaway
17:30 Support the channel!

#Crypto​​ #Altcoins​ #Ethereum​

DISCLAIMER: This is not financial advice! This is an entertainment and opinion-based show. I am not a financial adviser. Please only invest what you can afford to lose, and we encourage you to do your own research before investing. DYOR!

source

Leave a Reply

Your email address will not be published.