Terra Outpost report — March
This month’s trends, key metrics, and developments within the Terra Ecosystem.
Hello there! March has been a really exciting and busy month for Terra. UST (Terra’s US-pegged dollar) has been gaining more dominance in the stablecoin space, and there have been a lot of collaborations ongoing with various projects to make core projects on Terra, such as Anchor, more robust.
Keeping up with the news on Terra
UST’s increasing dominance
- Bittrue, a digital asset platform, will be using UST as a base currency and is now live with 71 trading pairs available on their platform.
- Aave, a money market on Ethereum, has added UST to their list of assets that you can borrow.
- Terra Bridge now allows you to bridge UST to and from Fantom and Avalanche, powered by Axelar Network.
- Synapse is now a bridge partner for Terra, and will enable UST interoperability between Terra and all current and new EVM compatible chains, such as Arbitrum and Optimism.
- THORChain is now integrated with Terra, meaning that you can swap native UST and/or LUNA with other assets!
- Buenbit, a centralized exchange in Argentina has listed UST on their exchange.
- Transak, an on-ramp/off-ramp partner for Terra, has enabled direct on-ramping of UST for US citizens to Terra dApps like Anchor, Kash, Leap and Terra Station.
xAnchor and sAVAX
- Anchor Protocol, a money market for Terra, is now interchain following the xAnchor development that’s powered by Wormhole. This means that any wormhole-supported chain will be able to use Anchor as they would on Terra using the wallets that they are comfortable with. Anchor’s first interchain expansion will be on Avalanche.
- Following the interchain development on Anchor, sAVAX (Benqi’s liquid staked Avalanche) can now be used as collateral to borrow UST.
- Kujira Protocol has opened up bidding for sAVAX liquidations using UST/aUST, given that sAVAX can now be used as collateral on Anchor.
Other interesting & important developments
- Anchor Protocol is now implementing a more semi-dynamic earn rate. Essentially, every month, the earn rate will increase/decrease at a cap of 1.5% based on the yield reserves. In the case that the yield reserves go down, the earn rate will go down 1.5% & the reverse is true.
- Sigma Protocol is bringing options to Terra and has recently released their whitepaper.
- Alice Finance, a personal finance app built on Terra, is finally available for download in the App Store.
- FanFury, a fantasy sports app on Terra, has announced the dates for people to be able to finally use it.
- Unrelated to any other news or developments on Terra, Do Kwon has made a bet with both GCR and Algod that the price of LUNA next year this time will be more than $88. Do has placed a bet of $10 million and $1 million with GCR and Algod respectively, escrowed by Cobie. It will be interesting to see what happens next year.
With all of the interesting developments happening on Terra, let’s see what’s been happening on-chain and how much Terra has grown over the past month.
In this section, we take a look at how much capital is locked on Terra. Generally, the higher the TVL, it correlates positively to the amount of trust people have in that specific chain.
▹ TVL Change (Source)
Terra has seen major growth in TVL in March, soaring from 14.65B to 19.76B (a 34.88% increase) this past month, with Anchor having a dominance of 76.96% of the whole TVL on Terra.
This is neutral for Terra because while the TVL has skyrocketed, most of the TVL is still on Anchor. In my opinion, what needs to be done next is to be able to reduce Anchor’s dominance in terms of TVL and have it more spread out.
▹ TVL as a % compared to other chains (Source)
However, when comparing it to other chains, we can see that Terra has been dominating in terms of TVL and has risen in dominance, from 9.55% to 11.51% (not including double-counting), when compared to the other chains. It has been holding the #2 position in terms of TVL, leading BSC with a huge difference of 16.21B.
This is positive for Terra in general because it means that people are actually using the applications on the Terra ecosystem and it’s gathering rapid adoption.
In this section, we take a look at how much UST has grown over the past month. Essentially, if UST and Terra’s other stablecoins are used more widely, this makes the LUNA ecosystem more robust. However, because developments thus far have only been for UST, we will only be focusing on UST’s growth.
▹ UST Market Cap (Source)
At the start of this month, UST’s Market Cap (MCAP) was at 12.97B and since then, we’ve seen a 26.21% increase in UST’s MCAP, bringing the total MCAP at the end of the month to 16.37B.
This is positive for UST because it means more UST is being minted and deployed (either on Terra or other chains) which accepts and utilizes UST.
▹ UST as a % of other stablecoins (Source)
Next up, we take a look at UST’s dominance as compared to other stablecoins. In the past month, UST has seen an increase in dominance from 7.31% to 8.97% of the whole stablecoin market cap.
This is positive for UST because the more dominance that UST has, the more people will trust UST and want to explore the Terra ecosystem.
▹ UST on Terra (Source)
We also take a look at where UST is being used on Terra. This is important because, ultimately, we don’t want UST to only be concentrated on one or a few dApps. What we want is for UST to be deployed and spent everywhere. With the help of https://twitter.com/sem1d5 and https://twitter.com/flipsidecrypto, we queried the usage of UST on Terra.
This is partly negative for Terra as currently UST is very concentrated on Anchor, with 55.6% deployed solely on Anchor. However, as other newer dApps launch this year, we hope that this balances the concentration of UST.
Wrapping it all up
And that’s it for the month of March! Before I forget, credits to https://twitter.com/Casa_Intern for his weekly Terra roundups, which helped us with keeping up with the news on Terra.
We have seen an exponential growth of UST’s acceptance and dominance as compared to other stablecoins. While the only issue right now on Terra is the concentration of UST on Anchor, I feel that this will be solved in the coming months with the introduction of new dApps such as Vertex Protocol (FX market on Terra), Sigma (Options on Terra) and much more!
What I am particularly excited about in April though, is the launch of Fanfury (Fantasy Sports on Terra). I believe that this is still the start for Terra as not many use cases for UST and its other stablecoins have been solidified yet.
But until then, stay safe and have fun! See you in April.
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