February 23, 2022       /       Unchained Daily       /       Laura Shin Daily Bits ✍️✍️✍️ The former owner of a Bored Ape Yacht Club NFT is[...]

The post UST Is Now a Bitcoin Backed Stablecoin (Partially) appeared first on Unchained Podcast.

On February 9, the American professional baseball team based in Washington, D.C., the Washington Nationals, announced the team has partnered with Terra, the open-source blockchain platform and decentralized autonomous organization (DAO). The Washington Nationals detail that the team is a “leading innovator” and is “consistently introducing new technologies to enhance the fan experience.” Washington Nationals […]

Recently, highly popular pseudonymous crypto analyst and influencer “Coin Bureau” explained why he is bullish on algorithmic stablecoin platform Terra ($LUNA). What Is Terra ($LUNA)? The official Terra documentation has this to say about the Terra Protocol: “The Terra protocol is the leading decentralized and open-source public blockchain protocol for algorithmic stablecoins. Using a combination of […]

The two new partnerships will see crypto and NFT integrations with major professional sports and esports organizations.

Terra Luna was born out of the need for market stability in the crypto…

The post Terra Luna suffers an 18% loss in 24hours appeared first on Coin Journal.

LUNA has been dropping sharply in the past few days, deeper than larger cryptocurrencies. As of press time, Terra’s native token moves on critical support barely above $50 with a 16.4% loss in the last 24 hours. Related Reading | Terra Announces Non-Profit ‘Luna Foundation Guard’ According to Wu Blockchain, the token lost as much as 20% in the last day. Apparently, retail investors have been panic selling their LUNA funds due to concerns about several of its dApps and UST. The latter is one of many stablecoins operating on the Terra ecosystem which is based on a supply and demand mechanism to maintain its peg. As NewsBTC reported back in December, UST has been gaining relevance across the DeFi sectors. The stablecoin allows holders access to the Anchor Protocol, Terra-based lending and borrowing application that consistently offered its users a 19.5% compounding yield on their UST deposits. This rate surpasses that of its competitors, some of which have issues offering a 10% yield with similar products. However, the current downtrend in the crypto market has heavily impacted LUNA and the Terra ecosystem. Some users believe the ecosystem as a whole could be in danger as a result of a reduction in Anchor’s reserves which according to some projections could reach $0 in the coming weeks. Without these funds, the protocol would be unable to pay off its users and due to Terra’s mechanism, it could trigger a fresh leg down across its assets. The pegged in UST has been offered in the past days, as more users seem to believe this theory. Thus, panic spreads amongst sellers looking to mitigate their losses. As of press time, UST has seen an important recovery as it hit a multi-month low of 0.98 versus the U.S. dollar. Terra (LUNA) Inventor Addresses Concerns Around Anchor Do Kwon, co-founder, and CEO of Terraform Labs, the entity behind Terra’s ecosystem, recently addressed the controversy generated around Anchor and UST. In an attempt to counterbalance the FUD, as some LUNA holder has called it, Do Kwon emphasized Anchor’s objectives. The first, he wrote on a Twitter thread, is to make market yields on stablecoins less volatile, while increasing the capital efficiency of the platform. Anchor’s Yield Reserve is a “centerpiece” to address these issues, but this component of the protocol can operate with a surplus or a deficit. Kwon said: Recently as leverage started to wind down from crypto markets, deposits have gone up a lot and borrowing down. The yield reserve has been running at a deficit to maintain the deposit yield. Users seem to believe that the Yield Reserve, Kwon said, should “always operate at a surplus”, and that the YR depletion will “have disastrous consequences”. The co-founder of Terraform Labs said that Anchor’s Yield Reserve was always designed to be used on current market conditions. On the second widespread concern by users, Kwon said that if the protocol runs out of funds in its Yield Reserve, it will “operate as a regular money market” still offering users around 15% to 16% in incentives. Therefore, he concluded that the protocol, and by extension the ecosystem, “will be fine”. Related Reading | NEAR Records 70% Rally On Terra Integration, Will It Close The Year In Profit? In the future, the team at Terraform Labs will make improvements to reduce “LUNA dominance in Anchor collateral under 40%”. In that way, a similar situation could be prevented. In the meantime, Kwon said: I am resolved to find ways of subsidizing the yield reserve. Anchor is still in the growth phase, and maintaining the most attractive yield in DeFi stable will strengthen that growth & build up moats.

Anchor's Yield Reserve is being depleted as deposits outpace loans.

The Luna Foundation Guard, a new decentralized organization developed to support the Luna ecosystem, has been launched last week in Singapore. The institution will offer funding in the form of grants to support initiatives built on top of the Luna network. One of its biggest functions will be to establish a “forex reserve” that will […]