MANTRA DAO Partners With Terra as a Validator to Accelerate Mass Adoption

MANTRA DAO
Sep 11 · 7 min read

MANTRA DAO, a leading community-governed DeFi platform, is delighted to announce an exciting community partnership with Terra, a blockchain payment network based in Korea with significant adoption in over 2 million active users. We are excited to become a validator for the LUNA token, the staking token that powers Terra’s Delegated Proof-of-Stake blockchain. This integration will allow Terrans and Sherpas to delegate their LUNA to the MANTRA DAO nodes to receive both LUNA and OM staking rewards, thereby bringing OM liquidity mining to the Terra ecosystem.

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Terra’s LUNA Joins MANTRA DAO’s Innovative Staking Program

The enthusiasm for ecosystem led effort is clearly reflected in the words of John Patrick Mullin (MANTRA DAO Council Member):

“We are thrilled to partner with a project like Terra that is on the cutting edge of blockchain payments, and is a giant in the Korean crypto space. Not only will we be a validator for LUNA, but we will be actively exploring other integrations into the Terra ecosystem, including having LUNA be used as collateral in our lending protocol. We believe this will be a lasting partnership that will bring significant value to OM and LUNA token holders alike.”

Beginning a new journey to the mainstream world

Terra is an algorithmic stablecoin that has been introduced with a mission to bring about money that is truly easiest to spend and most attractive to hold. Their family of native stablecoins are collateralized by a second native token called Luna. Luna has a dual role as it protects the Terra token from extreme price fluctuations in the market and rewards stakeholders systematically. Luna tokens represent mining power in the Terra network. MANTRA DAO will employ Luna tokens as substantial collateral in its lending protocol. Importantly, the Terra network provides fundamental value that is reflected by the massive real world payments transacted every day which set important value for Luna as a quality collateral asset.

One of Terra’s staking mechanism’s best features is that you don’t need to participate actively. To earn extra income, all a token holder needs to do is transfer some of their Luna tokens to an active validator. Terra gives holders an exceptional opportunity to earn rewards without having to participate in it actively. Luna aligns stakeholder incentives to participate and works as a stability reserve.

Till now, there has been an enormous gap between the blockchain industry and the mainstream economy. One of the most significant advantages of the integration of the CHAI payment gateway will be its massive reach. All that a user needs to do is simply link their bank accounts, and at the same time, Terra’s advanced technology will be there to support the entire process. CHAI employs Terra’s blockchain and stablecoin economy smartly and efficiently to reduce transaction fees and increase ongoing discounts. At the same time, CHAI offers both confidential, trustworthy, and fraud-resistant transactions and convenient settlement. By harnessing the power of blockchain technology, this partnership will play a pivotal role in driving mass adoption in the future. Using Terra’s payment network, the CHAI card empowers users to pay for anything. The CHAI debit card is a complete game-changer in the arena of blockchain technology. Just by scanning, users can complete their transactions in a few simple steps at any CU convenience store for example.

MANTRAO DAO is exhilarated to explore all these incredible opportunities with Terra. We expect to accelerate the expansion and leverage more advanced features developed on Chai Card. This is driven by a shared vision of allowing users to transact freely from across the world. This implies that there would be a complete elimination of unnecessary middlemen and fees, which would be a significant step in building an open and more transparent financial system.

This excitement is equally shared through the words of Do Kwon, Terra Co-Founder:

“I’ve been impressed with the rapid growth of MANTRA DAO’s community and the tenacity of their team members to get deals like this done quickly. We look forward to welcoming MANTRA DAO into the Terra family as a validator and are excited about combining forces to help LUNA grow internationally.”

About Terra

Luna, as the native staking asset from which the family of Terra stablecoins derive their stability, utility, and value, acts both as collateral for the entire Terra economy and as a staking token that secures the PoS network. Luna can be held and traded as a normal cryptoasset, but can also be staked to accrue rewards in the network generated from transaction fees. Luna can also be used to make and vote on governance proposals.

The family of Terra stablecoins achieve stability through consistent mining rewards with a contracting and expanding money supply. For example, if the system has detected that the price of a Terra currency has deviated from its peg, it applies pressure to normalize the price. Currently, the family of Terra stablecoins include: KRT (Terra stablecoin pegged to Korean Won), UST (Terra stablecoin pegged to US Dollar), MNT (Terra stablecoin pegged to Mongolian Togrog), SDR (Terra stablecoin pegged to IMF SDR), with more being added in the future.

The power of multi-chain operable smart contracts is a key feature that Terra has also been working to add. Powered by CosmWasm, these smart contracts are able to interoperate natively with the ecosystem of Cosmos blockchains with IBC (InterBlockchain communication). These smart contracts leverage the speed of WASM and the power of Rust and securely address most known attack vectors seen on Ethereum.

Terra has made enormous strides in mass adoption within payments space from the Chai payments app built on its platform. Chai has risen to become one of the most popular applications built with blockchain with over 3% of the South Korean population using Chai to pay for goods and services ranging from Korea’s #1 online travel agency, #1 bookstore, #1 gaming publisher, #1 convenience store, the top e-commerce sites, and many more. As of August 2020, Chai currently has over 1.9 million users, an annual run rate of $1 billion, and has shown an average retention rate of over 80% when used with multiple merchants.

Terra will also be launching Anchor. Anchor is a DeFi protocol that leverages the block rewards of every major PoS blockchain to power yields on stablecoin deposits. Anchor aims to become the “gold standard for passive income in blockchain.” It will be offering principal protection, instant withdrawals, and a steady and high APR.

The Terra ecosystem has approached and achieved mass adoption that has resulted from solid go-to-market strategies with strong mechanism design. This has resulted in over $78 million in transaction fees within a 3 month period, over $25 billion GMV exposed to the over 1.7 million users on Chai, and placing 3rd in total transaction revenue only behind that of Bitcoin and Ethereum.

When Terra was created in January 2018, it had the singular vision of facilitating the mass adoption of cryptocurrencies by creating digitally native assets that are price-stable against the world’s major fiat currencies. Keeping in mind that previous innovations in the technology of money was bootstrapped by large payment networks (Alipay with Taobao, Paypal with eBay, Visa with banks), Terra was born with the support of the Terra Alliance, 15 large e-commerce companies in Asia that collectively process 25 billion USD in annualized transaction volume and 45 million users. The vision of the project is that with the adoption and user engagement of a massive payment network, it will be able to, for the first time, bootstrap a blockchain payment network to the scale it deserves and facilitate far more powerful products and use cases through its infrastructure.

Terra in DeFi

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About MANTRA DAO

MANTRA DAO leverages the crowd’s wisdom to create a community-governed, transparent, and decentralized ecosystem for web 3.0. Built on Parity Substrate for the Polkadot ecosystem, MANTRA DAO gives financial control back to the people to store and grow wealth together.

Website | Whitepaper | Telegram | Medium | Twitter | LinkedIn

MANTRA DAO

Community-governed DeFi Platform Focusing on Staking, Lending, and Governanance.

MANTRA DAO

Written by

MANTRA DAO is a Community Governed DeFi Platform focusing on Staking, Lending, and Governance.

MANTRA DAO

MANTRA DAO leverages the wisdom of the crowd to create a community-governed, transparent, and decentralized ecosystem for web 3.0. Built on Parity Substrate for the Polkadot ecosystem, MANTRA DAO gives financial control back to the people to store and grow wealth together.

MANTRA DAO

Written by

MANTRA DAO is a Community Governed DeFi Platform focusing on Staking, Lending, and Governance.

MANTRA DAO

MANTRA DAO leverages the wisdom of the crowd to create a community-governed, transparent, and decentralized ecosystem for web 3.0. Built on Parity Substrate for the Polkadot ecosystem, MANTRA DAO gives financial control back to the people to store and grow wealth together.

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