Deep Dive 4 - Terra (LUNA)
Once a week I will find a coin with a real purpose, do some research on it, and write up a Lean Letter for you to view. I will not be schilling coins without a purpose. Only real coins that I see fit into this innovative, ever-changing space.
This week we are going to take a look into a hot, newer coin. LUNA, is the token that runs the Terra ecosystem. LUNA has been in the news lately with its massive pushes to all time highs.
What is Terra?
Terra is a blockchain protocol that features algorithmic, decentralized stablecoins. These stablecoins are the foundation of a very strong DeFi application. Terra’s tokenomics are known for the algorithm backed stablecoins, but features the security and freedom of Bitcoin. LUNA provides it’s holders with staking and governance features, meaning they are able to use their LUNA and vote on proposals that will determine the future of the Terra ecosystem.
Development of Terra began in January of 2018 and its main net officially launched in April 2019. They are now offering stablecoins pegged to the US Dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund's Special Drawing Rights basket of currencies.
The founders, Daniel Shin and Do Kwon, created this project with a vision to help early crypto adoption. They wanted a more stable, and useable blockchain technology. I do believe they are on the right path.
How can you obtain Terra?
As of right now, LUNA does not exist on coinbase. You will have to use a different exchange to purchase this. You can use Kucoin or Bybit in America. If you are in any other country, you can probably use Binance as well.
The Terra blockchain is a proof of stake coin, which means it cannot be mined. You can stake your LUNA as collateral to validate transactions and you will receive a reward in return.
What is Terra’s role?
When the founders of this project set out, they wanted a stable, useable project. They implemented algorithmically pegged stablecoins.
One of the most widely known coins on the Terra blockchain is the $UST coin. This is the US Dollar backed coin. Where this coin is backed by an algo, the code is able to handle major up and down swings in the crypto market volume.
In the crash of Spring 2021, $UST ran into a few flaws in their algorithm. They analyzed and corrected the errors. This was when again tested in the corrections of Fall/Winter 2021.
One of the best things you can do with the $UST token is deposit it on Anchor Protocol. Anchor is a decentralized finance bank where you can deposit your USD backed stablecoin, known as UST, and receive 19% APY. This is one of the best “savings” accounts there are. Where else can you earn 19% yield on a stablecoin?
Mirror Protocol is a DeFi application on the Terra network that takes crypto tokens and tracks the prices of real world assets like stocks. On Mirror, you are allowed to buy these tokens, which is essentially buying stocks. You can also long or short these assets, just like you were playing with options on the stock market. Mirror Protocol is truly a genius idea. I can’t wait to see where it goes in the future.
As for the ROI on LUNA, it is one of the craziest gains. I remember when this coin was $2-$5. LUNA is up 12,400% YTD.
DeFi Traders Push Terra’s UST Stablecoin to $10B Market Cap. Read More
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Coinbase - Know someone curious about crypto? You’ll both receive $10 in Bitcoin when they buy or sell $100 or more on Coinbase!
DeFi Cultivator - This set of videos will go through a few core concepts along with demos of swaps, liquidity pools, farms, and more.
Too Much Money - This guide takes you step-by-step through the way I personally invest for dividend growth. It works the same way whether you have $100 or $100,000 dollars making this an approachable book for growing your income.
How You Can Reach Financial Independence In 5-10 Years! - Route2Fi is going to show you the steps he is taking to reach financial independence, and now he is going to teach you to do the same!
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Nothing in this email is intended to be financial advice. Always do your own research.