Recently, various general smart contract new public chains have become popular, and the general smart contract new public chains led by Solana and Near are rising rapidly. When the funds are in place, application development will naturally not be a problem, and the public chain DeFi, NFT, and surrounding ecology are gradually taking shape.
The Terra native token, Luna, whose gains are equally violent, has also attracted everyone’s attention, with an increase of as much as 6 times in just 2 months. Just today, Terraform Labs (TFL) launched Project Dawn, a funding program for Terra ecological infrastructure and core technologies, and has unlocked 5 million LUNA (worth about US$150 million) for the implementation of the funding program.
The native U.S. dollar stable currency UST (TerraUSD) of the Terra protocol performed equally well. According to Cryptoslate data, UST surpassed the established compliant stable currency TUSD with a total market value of US$2.46 billion, ranking fifth in the stable currency market value list. Let us take a closer look at the financial infrastructure Terra, which was previously ignored by the public.
Image source: Cryptoslate
How is the Terra application chain different from other general smart contract public chains?
First of all, since the Terra protocol comes with a native stable currency, all applications on the chain will have stable currency transaction functions from the first day Terra goes online. In other chains, stablecoins need to be supported by the mining and custody of a centralized issuer or develop algorithms or mortgage stablecoins in the later stages, and these stablecoins cannot directly link with the native tokens of the chain.
Secondly, the increase in demand for Terra stablecoins will directly increase the demand for Luna, and the demand for Terra stablecoins not only occurs in the Terra domain, but the USTs on other chains also come from the Terra chain. This is why as the market value of UST increases, The price of Luna has also soared. Since Luna is the native PoS pledge token of the Terra chain, the price of Luna will directly affect the security of the chain, which means that the higher the price of Luna, the higher the economic value that can be safely carried in the Terra chain. However, for other chains, although native tokens capture value through intra-domain transaction fees, they cannot extend value capture beyond the domain.
Thanks to the high efficiency of the Tendermint consensus, the blockchain developed with the Cosmos SDK framework can reach a throughput of thousands of TPS. Applications on the Terra chain will have exclusive use of this part of the processing power, and the applications built on the Terra chain are all impactful to Terra. Native stablecoins have a strong demand for direct interaction, which is also the core of the Terra ecosystem. As for the traditional general smart contract public chain, although the ecology of each sector is fully blossomed and the number of users has increased, it will eventually touch the ceiling of on-chain processing capabilities, and ultimately lead to a decline in user experience.
Although the general smart contract public chain meets the basic needs of different applications, the underlying framework is rigid, and the application logic needs to be compromised based on the underlying framework. The platform-based application chain can be customized according to the specific needs of the sector, and its flexibility is much higher than that of the general smart contract platform. Different applications will find an application chain that suits their needs to build.
Application in Terra ecology
Anchor provides a principal-protected stablecoin savings product that can accept Terra deposits and pay stable interest. In order to generate income, Anchor can lend out deposits, and borrowers need to use the easy-to-monetize PoS assets on the main blockchain as collateral. Therefore, Anchor’s revenue is mainly driven by the block rewards of the PoS blockchain. The ultimate vision of the Anchor development team is to make Anchor the gold standard for passive income on the blockchain, providing reliable interest rates for stablecoin deposits. For more application details of Anchor, please refer to “Anchor: Savings Agreement on Terra Blockchain｜Project Introduction”
Mars Protocol provides users on the Terra chain with mortgage and non-collateral lending schemes. Users can borrow and lend by pledged four assets: UST, LUNA, ANC, and MIR. For non-pledged lending users, the strategy is similar to leveraged liquidity mining, and users can lend UST through pledged liquidity certificates.
Money flow management
Pylon Protocol provides a set of cash flow transmission tools for payers and payees, so that payers and payees with long-term interest binding needs can reach a long-term interest consensus through the agreement.
Suberra provides Terra users and merchants with a continuous payment function that uses stable currency to pay.
Chai is South Korea’s current e-wallet with the strongest development momentum. The wallet currently has 2 million active users. Terra users can directly pay through Chai as a fiat currency entrance.
MemeChat is Mongolia’s most popular instant messaging software, and MemePay is a payment tool launched by MemeChat, similar to WeChat Pay. Users can directly purchase the Mongolian stable currency TerraMNT through MemePay and pay on the Terra chain.
Paywith Terra provides cryptocurrency payment functions for websites.
Kado provides USD-UST USD deposit and withdrawal services for users in the Terra ecosystem.
Kash provides banking-like services for users in the Terra ecosystem. Kash cooperates with Anchor and Mirror to complete savings and investment services. Users can also directly use UST to make payments and transfers.
Mirror Protocol is a synthetic asset protocol in the Terra ecosystem. The most interesting aspect of this agreement is its US stock synthetic assets. Users on the Terra chain can trade US individual stock indexes through the Mirror Protocol.
Levana provides leveraged token services for assets in the Terra ecosystem.
Appollo DAO is a revenue aggregator in the Terra ecosystem, providing users with automatic revenue compounding functions.
Sandclock provides automated cross-chain revenue aggregation for users on the Terra chain. Users who want to participate in protocol governance can not only purchase protocol governance tokens, but also participate by donating mining revenue or principal.
Spectrum Protocol is an income aggregator in the Terra ecosystem. Spectrum provides users with two investment strategies, an automatic compound investment strategy (auto-compound) and an automatic mortgage strategy (auto-stake).
Kinetic Money provides users in the Terra ecosystem with the function of using future earnings in advance.
Investment and financial management applications
Solidefi Invest provides investment services for users of the Terra ecosystem. Users can invest in stocks, commodities, index funds, and encrypted assets through the application.
Astral Money provides personal financial management services for Terra users.
Orion Money teamed up with Anchor to provide a variety of stable currency wealth management services for Terra ecological users.
ZenGo allows users to purchase cryptocurrencies directly from their mobile phones, including Terra’s Luna.
Alice Finance provides personal financial management services for Terra users. The application obtains high profits for users through DeFi, and users can also directly transfer legal currency through Alice Finance.
Artemis Protocol provides Terra users with easier-to-operate financial management and token pledge services.
Glow Savings opens the door to entertainment and gaming wealth management for Terra users.
Terra users can make deposits through Yotta, and depositors will get lottery tickets and have the opportunity to win prizes worth up to 10 million U.S. dollars.
Capapult Finance provides high-yield fixed deposit services for Terra users.
Mavolo provides a wealth management tool for Terra users.
Spaar provides high-yield fixed deposit services for Terra users in the Netherlands.
Tiiik provides wallet and wealth management services for Terra users.
TerraSwap is the first DeFi project in the Terra ecosystem, providing users with decentralized asset trading services.
Loop provides wallets, decentralized exchanges, and liquid mining services for Terra ecological users.
Local Terra provides Terra users with a peer-to-peer trading platform for assets on the Terra chain.
Astroport provides programmable AMM decentralized exchanges for users in the Terra ecosystem.
Talis Protocol is the first DAO NFT trading market in all Terra ecosystems. At present, the seed round of Talis Protocol has ended, and promised to provide the official token TALIS for the first artists to support.
HERO NFT is the GameFi NFT game that will be launched in the next round of TERRA ECOSYSTEM. The plot of the game will revolve around the process of growing from an “ordinary person” to a “hero”.
Andromeda is a new generation of NFT protocol, which aims to break people’s common understanding of “NFT=collectibles” and bring NFTs that can be used as financial building blocks to the public, so that people can understand that NFTs can also be practical.
Terraworld is the first meta-universe focused on work affairs, where businessmen, employees, entrepreneurs and other people seeking low-risk investment can develop their own businesses here and freely try their own ideas.
StarTerra is the first Launchpad of the Gamefi project on the Terra blockchain. In addition, StarTerra itself is also a game with a Play2Earn mode and has stable revenue and a lottery pool.
This chapter only covers all DeFi and NFT sector projects in the Terra ecosystem. We can see that all projects in the Terra ecosystem are closely developing around the Terra stablecoin, which is why we say Terra is an application chain with strong currency attributes. At the same time, we can also see that Delphi Digital has participated in many investments in Terra ecological projects and provided great support.
In the future, we are expected to see more platform-based application chains like Terra attract different applications to build around them with their unique properties in the chain. This may start a battle between the application chain and the general smart contract public chain.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/terra-a-duel-between-the-application-chain-and-the-general-public-chain/
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