The Innovation of Terra and what makes it Special
Astro Hounds is a dog racing metaverse in which a person can experience the thrill of speed in never seen before fantasy environments whilst experiencing complete digital immersion and never wanting to stop. NFT technology opens up the ability to own the assets in the metaverse itself. Augmented reality offers the seamless blend of real life with technology that seems so real you could touch it. Terra blockchain offers the strong and stable network upon which this metaverse is built.
But what is so special about Terra? Why did Astro Hounds choose this network? Before we mentioned the benefits of Terra in relation to Astro Hounds, but with this article we would like to celebrate the wonderful world and technology of Terra itself.
🌎 Terra uses a dual token system 🌕
We are all aware that every chain has a native token used for transactions, as well as stablecoins for stability pricing of their own tokens.
Terra beats all previous blockchains with its system of dual native tokens, from the very start. LUNA and UST are pegged to the US dollar. (As well as all other major currencies such as Euro, GBP, JPY.) This means that by default, the Terra blockchain has its own stablecoin. It also means that within the Terra ecosystem, any transaction could be conducted under either LUNA or UST. This ensures both the convenience and efficiency if a project would like to raise funds or price its tokens in stablecoins. However, the beauty of this system does not stop here.
🌎 UST is an algorithmic stablecoin 🌕
Unlike other major stablecoins which are backed by a reserve of physical US dollars, UST is an algorithmic coin and is only “pegged” to the US dollar. UST is minted from burning an equal value of LUNA on-chain. Consequently, its peg to the US dollar is strictly maintained by the ongoing supply and demand in real life. If there is extra demand for UST (for example when a project launches that raises money in UST), the reduction of circulating UST will push up its price above 1 US dollar, in which case LUNA will be burned to mint more UST to bring down the price. Similarly, if there is an excess of UST on the market, it will be burned to be converted back to equal value of LUNA: smart and efficient.
🌎 UST adoption props up the price of a deflationary LUNA 🌕
Terra’s dual token system means that UST adoption translates to more LUNA being burnt, and in turn, the reduction of LUNA circulation leads to rising price of LUNA itself. As we have recently seen over the past year, adoption of UST has increased. First, a plethora of projects that launch on Terra all take UST as payment, and second, thanks to bridges such as IBC and Wormhole that have been built, UST has expanded into almost all major blockchains including Ethereum, Cosmos, BSC and Solana. The rapid rise in UST demand has caused a significant reduction of LUNA supply. Now the total market cap of UST is over 10 billion US dollars, and meanwhile we have witnessed the LUNA price have more than a 100x. Since the genesis supply, the total amount of circulating LUNA has reduced from 1 billion to 358 million (according to CoinMarketCap.com). In the future, as UST adoption is projected to rise even higher, LUNA’s deflationary process will continue while it appreciates in value. It is this feat of engineering that truly makes Terra stand out from the rival chains.
🌎 UST is a decentralised stablecoin 🌕
UST is the epitome of decentralisation. It is not controlled by any central organisations, and is purely driven by the market force and the smart contract embedded in the Terra blockchain. This is not the case with all other leading stablecoins, which are backed by centralised financial organisations, going against the spirit of decentralisation. Therefore, Terra embodies the meaning of decentralisation and it is extremely likely that UST adoption will only increase as the globe increasingly moves towards decentralisation, benefiting the entire Terra ecosystem in turn.
🌎 The Terra ecosystem 🌕
Terra recently went through a Columbus-5 mainnet upgrade, and this is where the Terra ecosystem really flourished. Hundreds of new protocols have been or are still being built, which all look to expand and enrich the Terra ecosystem to its full potential. These include the Anchor protocol, which has consistently delivered nearly 20% APY for stablecoins (UST), which has not been replicated anywhere else. The Nexus protocol, which seeks to enhance yield of the native LUNA token with no risk of impermanent loss. And lastly, the Whitewhale protocol helps any user to take advantage of arbitrage opportunities on Terra. Now with the implementation of bridges, interoperability will open another gate for even more opportunities, closing the gap between Terra and other chains such as Ethereum, Solana and BSC.
Astro Hounds believes in the Terra ecosystem itself, and the future of Terra. It is the sheer feat of engineering, combined with the vision and goals of the project leaders, that position any Terra based project for bright things.
🌕 🌎 🌕
The Dog Racing Petaverse on Terra 🏁
It’s not the size of the dog in the race, it’s the size of the race in the dog.
This is intergalactic dog racing with a Formula 1 edge — Each planet has a new challenge. Race, train, breed and build your elite team. Championships pay you. Losers pay you. Fans pay you. $HOUND.
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