Terra (Luna) cryptocurrency review

Terra is a decentralized blockchain platform that takes advantage of stablecoins tocreate a viable alternative to fiat currencies.

Terra is a blockchain-based payment network based in Korea that has been widely recognized by more than 2 million active users.

Terra ecosystem

Terra Builds New Financial Infrastructure.on a family of stablecoins, each of which is pegged to major fiat currencies.All assets are algorithmically stabilized by Terra's native governance token and staking token, Luna.

Payment application built on Terra platformChai. It has become one of the most popular blockchain applications, with over 3% of South Korea's population using Chai to pay for goods and services on e-commerce sites. As of August 2020, Chai has over 1.9 million users and has annual revenue of $ 1 billion.

Terra also launched its own DeFi Anchor protocol.

Terra and LUNA tokens

Luna, as the original staking asset from which the Terra stablecoin family drawsits stability and value, acts as collateral for the entire Terra economy that operatesOn the PoS algorithm, Luna can be stored and sold as a regular crypto asset, but its main use is staking.

Terra is a "stablecoin" tasked with promoting the digital currency.The price of Terra is pegged to a basket of currencies.When the Terra exchange rate falls, the reserve buys the Terra in the market and burns itBy reducing the money supply so that the price level is equal to the money supply.When the Terra exchange rate is above the price peg, the system creates a new Terra.

Reserves are maintained through the use of Luna – users are incentivized to put Luna into reserve as deposits generate income from transaction fees collected from the network.

Currently in the Terra family of stablecoinsIncludes: KRT (Terra stablecoin pegged to the Korean Won), UST (Terra stablecoin pegged to the US dollar), MNT (Terra stablecoin pegged to the Mongolian togrog), SDR (Terra stablecoin pegged to the IMF SDR).