{"id":137595,"date":"2020-12-19T22:57:10","date_gmt":"2020-12-19T19:57:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/terra-protocol-luna-rallies-66-after-defi-and-stablecoin-launch\/"},"modified":"2020-12-19T22:57:10","modified_gmt":"2020-12-19T19:57:10","slug":"terra-protocol-luna-rallies-66-after-defi-and-stablecoin-launch","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/terra-protocol-luna-rallies-66-after-defi-and-stablecoin-launch\/","title":{"rendered":"# Terra Protocol (LUNA) rallies 66% after DeFi and stablecoin launch"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23a28bd2f86\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23a28bd2f86\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/terra-protocol-luna-rallies-66-after-defi-and-stablecoin-launch\/#Stablecoin_and_yield_mechanism\" >Stablecoin and yield mechanism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/terra-protocol-luna-rallies-66-after-defi-and-stablecoin-launch\/#Synthetic_assets_and_referral_marketing\" >Synthetic assets and referral marketing<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Terra Protocol (LUNA) rallies 66% after DeFi and stablecoin launch <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Throughout 2020 a handful of new stablecoins launched and many analysts have suggested that stablecoin growth is the backbone of the crypto sector and partially responsible for the current Bitcoin rally.<\/p>\n<p>For many traders, stablecoins provide a safe place to shelter during volatile periods in Bitcoin and altcoins but there are other ways to interact with these fiat-pegged assets. <\/p>\n<p>Terra Protocol aims to create a programmable algorithmic stablecoin available on every blockchain. Similar to its better-known competitor, Maker (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coin360.com\/coin\/maker-mkr\">MKR<\/a>), Terra Protocol has a native stabilizing crypto-asset called <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coin360.com\/coin\/terra-luna*\">LUNA<\/a>.<\/p>\n<p>The project was created by a partnership of 15 large Asia-based e-commerce companies that serves more than 30 million users. Its ecosystem focuses on building efficient, scalable, competitive programmable payments.<\/p>\n<p>Ahead of its March 2019 ICO, the company raised $32 million in a seed financing round that included Hashed, Polychain Capital, Huobi, and XRP Arrington Capital.<\/p>\n<p>Terra&#8217;s key element is the Chai payments app, which now has over a million <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">download<\/a>s on the Android store. Users can accumulate points that can be redeemed for merchant rewards with Chai\u2019s partners. <\/p>\n<p>These partners include TMon, Qoo10, Yanolja, Megabox, and Musinsa, which offer benefits in exchange for marketing promotion to Chai&#8217;s member base.<\/p>\n<p>The company also offers a debit card called the Chai Card, which launched in June 2019. On Dec. 9, Chai received a $60 million <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">Series<\/a> B investment from SoftBank and Hanwha Investment &amp; Securities.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stablecoin_and_yield_mechanism\"><\/span>Stablecoin and yield mechanism<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/3d4d697a-ab0a-4f7d-b26e-481c886718bb.png\"><figcaption style=\"text-align: center;\"><em>Terra (LUNA), Synthetic (SNX), and Ren (REN) in USDT. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The protocol runs on a proof-of-stake blockchain where miners need to stake the native cryptocurrency (LUNA) to mine Terra transactions.<\/p>\n<p>Recently, the market cap for the TerraUSD (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/currencies\/terrausd\/\">UST<\/a>) stablecoin crossed above $150 million, a significant milestone considering the token launched only 3 months ago. <\/p>\n<p>According to Terra&#8217;s whitepaper, LUNA <\/p>\n<blockquote><p>&#8220;Achieves price-stability via an elastic money supply, enabled by stable mining incentives. It also uses seigniorage created by its minting operations as a transaction stimulus, thereby facilitating adoption.&#8221;<\/p><\/blockquote>\n<p>Unlike most decentralized finance applications, LUNA uses its own miners as oracles. The weighted <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>n of votes achieves the target fiat pricing, and miners are rewarded for being accurate.<\/p>\n<p>Currently, most of the yield revenue comes from the purchases of e-commerce clients using the CHAI app. This means LUNA token holders have great incentives for staking.<\/p>\n<p>On July 6, Terra blockchain introduced its savings protocol, called Anchor. Unlike most DeFi applications, it offers a principal-protected stablecoin that pays an interest rate. <\/p>\n<p>Anchor takes TerraUSD (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/currencies\/terrausd\/\">UST<\/a>) stablecoin deposits and will eventually be able to use the funding to acquire staking positions on different blockchains. This enables interoperability with proof-of-stake blockchains and will also generate passive income for depositors.<\/p>\n<p>It is worth noting that Anchor does not include Ethereum ecosystem staking opportunities as those do not offer proof-of-stake.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Synthetic_assets_and_referral_marketing\"><\/span>Synthetic assets and referral marketing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite delivering important milestones, including its USD stablecoin and DeFi applications, LUNA has been mimicking the performance of its peers Synthetix (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coin360.com\/coin\/synthetix-network-token-snx\">SNX<\/a>) and Ren (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coin360.com\/coin\/ren-ren\">REN<\/a>).<\/p>\n<p>More recently, on Dec. 4 LUNA launched a DeFi initiative called Mirror Protocol, enabling synthetic assets by providing on-chain price exposure. This includes stocks, commodities, and ETFs, and the platform uses Band Protocol (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coin360.com\/coin\/band-protocol-band\">BAND<\/a>) oracle solutions for pricing.<\/p>\n<p>During this process, a few problems emerged. On was the lack of pricing mechanisms during weekends when traditional markets are closed. Another issue was the 150% collateral requirement in LUNA stablecoin.<\/p>\n<p>The most recent product reveal took place on Dec. 10 when Terra Protocol launched BuzLink, a marketing platform that rewards the entire referral chain when a sale is made. <\/p>\n<p>The marketing tool distributes stablecoin rewards to product referrers over the Terra blockchain. Therefore, all users who share the product link benefit when a user buys the product.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/b417ab89-0ea9-4d74-9004-fb4cc95c8374.png\"><figcaption style=\"text-align: center;\"><em>LUNA Twitter Users Activity vs. USD price. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/vision.thetie.io\/\"><em>TheTie<\/em><\/a><\/figcaption><\/figure>\n<p>Data from TheTie also shows that price spikes have been accompanied by increases and decreases in social network activity. This suggests that traders can benefit from closely monitoring Terra Protocol partnerships and announcements to detect less active periods as these are typically associated with price stagnation.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>autho<\/em><em>r<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/terra-protocol-luna-rallies-66-after-defi-and-stablecoin-launch\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Terra Protocol (LUNA) rallies 66% after DeFi and stablecoin launch &#8221; Throughout 2020 a handful of new stablecoins launched and many analysts have suggested that stablecoin growth is the backbone of the crypto sector and partially responsible for the current Bitcoin rally. For many traders, stablecoins provide a safe place to shelter during volatile&#8230;<\/p>\n","protected":false},"author":1,"featured_media":137596,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/56223dcd-0dbb-424c-a7f5-118f20eac2ff.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74863,76701,74868,77655,74939,75493],"class_list":["post-137595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-cryptocurrencies","tag-dai","tag-defi","tag-maker","tag-market-analysis","tag-stablecoin"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/137595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=137595"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/137595\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/137596"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=137595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=137595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=137595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}