DELIGHT LABS Launch AMM DEX Terraswap on the Terra Blockchain
👋 Introducing Terraswap
Not too long ago, Terra’s Columbus-4 mainnet upgrade brought CosmWasm smart contracts to the Terra ecosystem. As long-standing supporters and validators for the Terra network, the DELIGHT team is delighted to announce that we are taking the next step forward by launching Terraswap, powered by the smart contract layer on top of the Terra blockchain!
Inspired by Uniswap, Terraswap creates automatic, decentralized markets for token pairs allowing users to exchange assets directly on-chain. Pairs can be created between native Terra assets (Luna, UST, KRT, etc.) and CW20 tokens (user-defined tokens). Terraswap will debut with the current four active Terra stablecoins against Luna, competing against Terra’s native on-chain atomic swap. These starting pairs will diversify on-chain liquidity and provide a more robust means to arbitrage that does not alter the supply of Terra and Luna, thereby enhancing the stability mechanism.
⚖️ Initial Launch Pairs
- UST/LUNA
- KRT/LUNA
- MNT/LUNA
- SDT/LUNA
Trading for the initial pairs will go live on Nov. 13 (Friday), 9PM KST.
We’re excited for Terraswap to play a central role in facilitating the cross-pollination of novel solutions on the Terra blockchain.
🌪 DeFi Invades Terra
Terraswap will also finally provide users on Terra with another avenue of generating yield other than LUNA staking — users can choose to become liquidity providers by depositing assets (which they can later withdraw) to Terraswap pools, which help trades execute at lower fees. For this, they are compensated with LP tokens, which entitle them to a share of the protocol trading fees and can be used in other DeFi applications on Terra.
We have embraced the composability of Terra’s smart contract architecture and designed Terraswap to be a foundational primitive for the budding Terra DeFi ecosystem. Terraswap LP tokens can be used inside other smart contracts to extend the power of Terraswap onto other applications. Developers can simply plug in Terraswap as a reusable component to instantly add automated on-chain markets to their next dApp. Additional incentives can even be created on top of LP tokens to quickly generate liquid markets and encourage activity and participation.
🚀 To Liquidity and Beyond
With new projects just around the corner, we’re excited for Terraswap to play a central role in facilitating the cross-pollination of novel solutions on the Terra blockchain. Beyond simple ports of Ethereum DeFi’s mainstays such as MakerDAO, Synthetix, Compound, etc. we’re looking forward to supporting the types of applications that only make sense to build on Terra, starting with the listing of a new class of assets that map to real world value within the next 10 days. We also imagine user-facing investment products with synthetic asset exposure, cross-chain DeFi yield farming, yield-bearing stocks powered by Anchor, etc. — the possibilities are truly boundless.
🛠 Terraswap Resources
- Terraswap: https://terraswap.io
- Github: https://github.com/terraswap/terraswap
- Terraswap Docs: https://docs.terraswap.io
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