Everything To Know Before Investing in Terra

If you’re a stablecoin lover, there are now many choices to pick from when deciding where you want to invest. There’s even a wide variety of methods and networks experimenting with ways of keeping stablecoins pegged that aren’t flat-backed stablecoins. Terra is one of these projects, developing a completely unique approach to stablecoins.

What is Terra?

A programmable blockchain protocol, Terra (LUNA) has been developed to facilitate a digital payment system that has the autonomy, decentralisation and speed of cryptocurrency but is powered by flat-pegged stablecoins. This means that the Terra protocol allows stablecoins, which are non-volatile digital agents, to be pegged into a real-world currency.

The Terra blockchain network was built using Cosmos and has been widely used by Asian e-commerce markets that use stablecoins pegged to the US Dollar, Japanese Yen and South Korean Won. Terra also has an AUD pegged stablecoin called AUT.

Terra has a native token, LUNA, which is used as a governance token, so users of LUNA can stake their tokens to validate transactions within the Terra ecosystem. LUNA also has a pivotal role in maintaining the stability of prices of the Terra stablecoins.

How does Terra (LUNA) Work?

Terra uses a programmable infrastructure to provide the market with self-stabilising stablecoins and other unique features. To accomplish this task, the network relies on an elastic monetary supply mechanism. The platform will automatically adjust the supply of its stable coins to ensure that their values remain pegged to their underlying assets.

Here are some of the important aspects of Terra (LUNA) that prospective investors should be aware of.

Stablecoins

There are a wide variety of stablecoins available on Terra at this time. Specifically speaking, you can access Terra USD (UST) which is pegged to the US dollar, TerraMNT, pegged to the Mongolian Tugrik, TerraKRW (KRT) pegged to the South Korean Won and more.

Mirror Protocol

Terra users can easily use the Mirror Protocol to create fungible assets. These newly created assets are known as synthetics. It is important to know that you need to lock up greater than 150% of the current asset’s value in Terra stablecoins or m-assets as collateral before minting a Mirror asset (m-asset).

Anchor Protocol

Terra stablecoin holders can earn rewards via the Anchor protocol. Terra stablecoins earn rewards similar to a savings account. The protocol supports instant deposits and withdrawals. Anchor is additionally a lending protocol that allows borrowers to put down liquid staked PoS assets from major blockchains as collateral for short-term loans.

Staking

If you would like to earn rewards you can stake LUNA. Staking rewards in the Terra ecosystem are derived from a combination of gas (compute fees), seigniorage rewards and taxes. For every transaction, a small fee of 0.1% to 1% boosts these earnings for stakes.

GAS

In a similar manner to Ethereum, Terra requires the use of GAS to complete smart contracts.  This allows Terra to eliminate spam on the blockchain and adds another layer of incentivisation for miners to execute these actions.

Governance

Terra uses a community-based governance tool. Validators gain voting rights regarding vital network updates. These updates include things such as upgrades, alterations to fee structures, technical changes and more. Community governance is ideal because it allows for consensus support for proposals, in particular, any Validator can submit proposals to get voted on by the community.

LUNA

LUNA is the native coin for the Terra ecosystem. This coin serves multiple purposes in the network. It is largely used to operate the collateralising mechanism that allows for secure price stability of the network’s stablecoins. Luna is also critical in locking value within the Terra ecosystem via staking.

Validators

Terra (LUNA) is a delegated Proof of Stake (DPos) network. This means that Validators approve transactions and add blocks to the blockchain. They are then rewarded in LUNA for their efforts. TO become a Validator, you need to be one of the top LUNA holders. Those who are not qualified for this designation can still stake their tokens and earn passive rewards by delegating them to a Validator.

What Makes Terra (LUNA) Valuable?

Terra seeks to reduce the technical limitations and the centralisation surrounding fiat currencies. The Terra blockchain functions as an end to end payment solution across multiple blockchains. The ecosystem Terra has created also offers seamless cross border transactions using fiat-pegged stablecoins. This unique ecosystem allows for seamless low fee value exchange between countries, rendering the blockchain valuable as a decentralised payment platform and fiat-pegged stablecoins. This ecosystem also allows for a seamless, low fee, value exchange between countries, making the Terra blockchain incredibly valuable as a decentralised payment platform and fiat exchange.

Benefits of Terra (Luna)

Terra (LUNA) brings a wealth of benefits to the market. The decentralised and permissionless aspect of it makes it ideal for the digital economy. The network offers value to customers through competitive programmable payments, logistics, and an infrastructure designed to simply Dapp and stablecoin development

Programmable

Terra has an agenda that is development focused. The network allows programmers to build smart contracts in AssemblyScript, Rust or Go. Additionally, you can add extra functionality to your Dapp through the use of the network’s oracles. Oracles are off-chain sensors that can communicate data back and forth from the blockchain. Oracles are critical to blockchain networks, especially when used for price discovery purposes.

Interoperability

Terra is skewed towards interoperability. The network is designed to run on multiple chains connected by Cosmos INC. Currently, Terra is live on Solana, Ethereum and Swyftx. With developers announced that they have plans to expand the protocol to include more blockchain in the near future.

Streamlined 

Terra has prioritised a transparent ecosystem. The network was built from the ground up to replace the complicated payments value chain. Specifically, Terra helps to remove or reduce the need for credit card networks, banks and payment gateways with a single blockchain manner.

How To Buy Terra (LUNA) in Australia

At Swyftx, we have made it easy for you to easily invest in LUNA tokens. The Swyftx platform allows users to buy and sell Terra (LUNA) as well as over 300 cryptocurrencies listed on the exchange. When you trade with Swyftx, you can trade with some of the lowest fees and smallest spreads on the Australian crypto market as a whole.

This is how you can easily trade Terra(LUNA) on Swyftx.

1.     Create an account

To start trading LUNA on Swyftx you need to begin by signing up for an account via the mobile app or desktop website.

2.     Verify Yourself

Before you can start trading Terra(LUNA) you will need to verify your identity for maximum security. Verification shouldn’t take longer than five minutes, and you only need to provide a form of identification such as a driver’s licence or passport.

3.     Deposit Funds

The next step is to deposit funds to trade with. Swyftx allows you to deposit up to $100,000 AUD per day. You can also utilise various payment methods including POLi, OSCO, PayID and credit or debit cards.

4.     Trade Terra (LUNA)

After your funds are cleared, you’re now free to buy Terra tokens (LUNA) as well as other popular currencies on Swyftx.

The Verdict

Terra is unique as its self-adjusting monetary supply mechanism is unique to the industry. Due to this, the project is a great reflection of the pioneering spirit of the decentralised sector. Terra is now popular among traders and the network is expanding globally. When making an investment, you should consider Swyftx for all your crypto and Terra needs.