Terra is a decentralized finance protocol. Its primary product is a stablecoin called UST.
Unlike other stablecoins, UST is algorithmic, meaning there’s no reserve of U.S. Dollars to back it (we’ll get into this more below).
Developers are using UST and the Terra protocol to build a number of cutting-edge decentralized finance applications.
Here are the quick takeaways from this report:
- Algorithmic stablecoins: The main value of Luna is tied to their UST stablecoin, a digital currency backed by an algorithm rather than a reserve of global currencies.
- Real adoption: Unlike other protocols, Terra, and more specifically UST, are currently used by millions of people every day to buy things.
- Ecosystem: There’s a ton of development activity going on in the Terra ecosystem to build infrastructure for ‘internet money’, including payments, savings, and investing. We’ll show you examples.
- Risk: Algorithmic stablecoins have failed in the past and it’s possible that Terra could too.
