Terra Classic USD

TerraUSD was released in September 2020 in partnership with Bittrex global with plans to create a scalable, interchain stablecoin pegged to the US dollar. Terra is a public blockchain protocol deploying a set of algorithmic decentralized stablecoins which underpin a thriving ecosystem that brings DeFi to the hundreds.

The Terra is decentralized and open-source public blockchain protocol for algorithmic stablecoins. Using a combination of open market arbitrage incentives and decentralized Oracle voting, the Terra protocol creates stablecoins that always track the rate of any fiat currency. Customers can spend, keep, trade, or exchange Terra stablecoins immediately, all on the Terra blockchain.

Luna offers its holder staking rewards and governance strength. The Terra ecosystem is expanding a community of decentralized programs, developing a stable demand for Terra, and growing the price of Luna.

Terra and Luna

The protocol includes two tokens – Terra and Luna.

• Terra: Stablecoins that track the fee of fiat currencies. Customers mint new Terra via burning Luna. Stablecoins are named for their fiat counterparts. For example, the base Terra stablecoin tracks the fee of the IMF’s SDR, named TerraSDR, or SDT. Other stablecoin denominations encompass TerraUSD or UST, and TerraKRW or KRT. All Terra denominations exist in the identical pool.
• Luna: The Terra protocol’s native staking token soaks the fee volatility of Terra. Luna is used for control and in mining. Users stake Luna to validators who document and confirm transactions on the blockchain in exchange for rewards from transaction costs. The more Terra is utilized, the more Luna is cost.

Following the 8th May crash of Luna, TerraUSD suffered a massive blow the next day, 9th May, as it started to diverge from the $1 Peg. The following week TerraUSD was traded at a low of $0.08. Some rallies have increased its price up to $0.20, but only time will tell if Terra or Luna will recover from this blow.