Terra (Luna) is a blockchain technology that uses fiat-pegged stablecoins to power price-stable payment systems and TerraUSD (UST) is the stable coin on Terra (Luna). It is a deploying protocol project founded by Terraform labs. Their focus is on developing and powering the cryptocurrencies’ startups and financial apps by attempting to maintain a value of US$1.00.
For example, to mint 1 TerraUSD (UST), US$1.00 worth of TerraUSD’s assets (LUNA) must be burned.
PURPOSE OF TERRA
The primary purpose of Terra is to bring reduction to the volatility endemic of the cryptocurrencies being a stable coin. We have some stable coins like Tether that are more pegged to the conventional currencies like the US dollar via the cash and cash’s equivalent opposing the associated reserve token and algorithm.
The terra crypto is a high-speed blockchain protocol that works with stable payments and finance infrastructure and its development.
LUNA VERSUS TERRA
The process of bonding a Luna to the validator for the purpose of the exchange is known as STAKING. Terra protocol allows only the top 130 validators to participate in the consensus. The stake or total amount of Luna bound to the validators determine their rank (the validator’s rank). Validators with higher stakes are usually chosen compared to others, primarily for proposing new blocks and gaining more rewards along the line, even though the validators can bond the Luna to themselves.
Luna is recognized by Terra protocol, and it serves as the foundation of the whole terra network society. It is a native staking token responsible for securing the price stability of Terra stable coins, including the Terra USD (UST). Luna also performs the function of regulating the incentives of validators. Having the goal of becoming a worldwide, decentralized payment system, Terra is now on the rise in its ecosystem. Luna has also experienced a good value of growth in the past month, possessing some of the highest value locked of a blockchain, making the entire Terra world on the rise.
The users who want to receive their rewards from consensus (the system of verification that secures the proof of stake of the terra blockchain. They are called the Tendermint consensus) without running a full node are referred to as delegators. They stake their Luna to a validator, thereby increasing the validator’s weight and total stake; due to this act, the delegator receives part of the transaction fees as a staking reward. Any User who stakes Luna is referred to as a delegator.
The staked Luna is always in possession of the delegator. Though it can’t be traded for free, a validator never owns it. Delegators bond their Luna to a validator to start receiving their reward. This bonding process helps in adding a delegator’s Luna to a validator’s stake. This allows the validators to take part in the consensus.
HOW TO STAKE YOUR LUNA
The Terra Station wallet is the simplest way to stake your Terra, Luna. All you have to do first is create the Terra Station wallet, then transfer your Luna tokens from your exchange (any one of them), and it is purchased.
A container is said to offer the best Terra Luna interest rates. It is a platform responsible for earning the staking rewards on the proof of cryptocurrencies. As many deposits as possible can be made on this platform, where you can deposit cryptocurrencies, including Luna, to get more passive income and staking rewards. Apart from being user friendly and understandable, they have great interest rates and staking rewards.
Considering the Celsius Network Terra Luna Interest rates and bonuses, Celsius Network offers a very competitive interest rate of 5.05% for Terra Luna (at the time of writing this). If the highest loyalty level is achieved, you can also get up to 6.35%, and you get to receive your payment in CEL token. With the Celsius network, you can get more interest in an extensive range of various stable coins and cryptocurrencies.
Being one of the best that offers welcome bonus interest rates in the crypto market world, Celsius also has deposit bonuses that are put aside from the welcome bonus, which can yield up to $10-$2000.
ANCHOR PROTOCOL ON TERRA LUNA
The lending and borrowing protocol on the Terra block chain is referred to as the ANCHOR PROTOCOL. Anchor protocol is a saving protocol that gives the depositors of Terra stable coin, UST, a yield of 20% that is fixed as payment. Borrowers who lock proof of stake assets are lent the deposits as collateral.
The anchor pays a 20% interest on every deposit of UST and US Dollars made in the stable coin to Terra. This payment is said to be fixed and reasonably higher when compared to what other industries have to offer when it comes to anchor rates.
INSURANCE ON ANCHOR
The protocol payment is this high because of interest charges placed on loans, liquidation fees and earned yield gotten from the borrower’s collateral. Still, following the recent crash of the crypto market, borrowers have been short in supply. Anchor has now started to go into its reserves (a form of savings account) to maintain and sustain its protocol and anchor rate, which was built to become a benchmark in the industry.
WHERE TO BUY TERRA LUNA
You can find Terra’s native token Luna on several lists of cryptocurrency exchanges such as Huobi, Bitinex and Upbit, which is always available for trade against stable coins, fiat currencies, and other cryptocurrencies.
TOP DEXS ON TERRA LUNA
The top three Dexs on the Terra luna network that you can use right away include
- The Terraswap
- The loop
- The astroport.