If you want to learn more about Polygon, Solana, Cardano, Axie Infinity, Celo, Hedera, Theta or Waves you can check out the articles from the past 2 months.
You can find all this, and more, in our Podcast too.
Terra(LUNA) is one of the most interesting chains out there partly because it did not follow the traditional path of launching a smart-contract chain nor does it want to do what typical chains want to do. It has been created in order to facilitate the adoption of Crypto by creating digitally-native assets with stable value. In other words, it creates stablecoins that are not backed by fiat, but pegged to it. It wants to be stable & programmable money for the internet.
It has bootstrapped its creation by targeting the ecommerce payment use case first. It first became useful for payments and then morphed into something on which more powerful products can be built; as opposed to other chains who released a very elaborate tech but didn't exactly know what the use cases would be.
It started by being mostly focused on the Korean Won and the Mongolian Tugriks but quickly turned its eyes towards the US dollar and is now promoting its USD-pegged stablecoin, UST.
It's aiming to become the largest stablecoin in crypto, as it believes it solves a lot of the problems that fiat backed (such as Tether or USDC) or crypto-backed coins (such as Dai) present.
Do Kwon, Terra's co-founder, said "The stablecoin is the most important product in crypto, uniquely serving the currency function of cryptocurrencies." and he believes that for true decentralization and censorship resistance to happen that stablecoin needs to be decentralized. And following that vision, Terra wants its "product", UST, to be as widely used as possible and so has gone to great lengths to make sure that UST is available on multiple chains. Today it is accessible on Ethereum, BSC, Harmoney, Solana, and the whole Cosmos ecosystem through IBC.
So it's a whole blockchain dedicated to making stablecoins which can then be taken everywhere in Crypto. And it can also be used to create other things.
The Market Capitalization of UST has gone from pretty much nothing in November 2020 to US$ 2.88 Billion in November 2021 and is trading around US$ 100M a day.
LUNA is used to secure the network through Delegated Proof of Stake (PoS) and pay for transactions. Interestingly, a lot of projects launching on Terra also offer "airdrops" to Luna stakers, which is a nice, non-planned aspect of staking the token today.
LUNA's market capitalisation went from about US$ 80M in the summer of 2020 to US$ 21B in late 2021.
To read more about the treasury, the tokenomics (and how they were recently changed to accompany the growth of the chain) and how Terra is building its own insurance pool from part of its treasury, read the "Columbus-5 mainnet upgrade news" by Terraform Lab's famous intern.
Why is Terra(LUNA) whitelisted as an investable asset for Autopilot?
Terra has one of the clearest vision and best execution of all layer 1 chains. It's also one of the most original where it creates a whole Layer 1 Proof of Stake Chain with robust economics with the sole purpose of making decentralized stablecoins sustainable and inter-chain. The team has shown a remarkable ability at developing avenues for their stables to be used, such as the incredibly-appealing Anchor protocol that offers 20% stable yield for lending UST.
And while it focused a lot of its efforts and marketing on UST - because that's pretty much the only stable value in demand in DeFi - it can just as easily create a Korean Won, a Euro, or a Standard Drawing Right (which sounds like the best currency to be paid in if you are a Digital Nomad). If it has an oracle price feed, it can be turned into a Terra Stable.
LUNA has often been on our watchlist since late 2020, and has been whitelisted since mid-February 2021. It has often been held by the AI since then and has contributed positively to its performance, especially in March of 2021.
Terra(LUNA) market commentary for October 2021
Layer 1 blockchains and use-case specific blockchains have been doing pretty well for a couple of months, in general.
With regulators looking closely at centralized stablecoins, their decentralized brethren are enjoying some newfound popularity.
Additionally, the Columbus 5 upgrade of late September mentioned above has allowed Terra to really go inter-chain and it looks like it could have a real shot at becoming the favorite stablecoin issuer of the metaverse.
That took the LUNA price to a new all-time-high in early October which it passed again in early November to climb above the psychological bar of US$ 50. This time last year it was worth US $0.3
TerraUSD is now the 5th largest stablecoin and the second algorithmic stablecoin after DAI.