TERRA & LUNA: Programmable Money for The Internet

Stablecoins are a type of cryptocurrency linked to an asset like the U.S. dollar that doesn’t change much in value. Compared to traditional FIAT currencies, moving money with stablecoins is faster, cheaper, and easier to integrate into software. In addition, Smart Contracts can be used with stablecoins. Hence why a whole new universe of dApps and stablecoin-integrations emerges. And Terra for sure is an interesting player in this regard.

🌎 -> 🌑 — Photo by Neven Krcmarek on Unsplash, edited by the author

Terra is a decentralized financial network that focuses on cryptocurrencies with a stable value (> stablecoins). The various stablecoins (for example TerraUSD, TerraEUT) are algorithmically backed by the LUNA token. The LUNA token can also be staked and used for voting on protocol changes.

History

The South Korean startup Terraform Labs was founded in 2018 by Do Kwon and Daniel Shin. Terraform Labs’ investors include VCs Pantera Capital and Coinbase Ventures.

Idea: Programmable Money for The Internet

Programmable $ for the internet — terra.money

Supply and demand determine the price — this basic principle is implemented by algorithms in Terra. Stablecoins in the Terra…