Terra is a decentralized stablecoin that can expand and narrow the supply chain in order to stabilize unit prices. The reserve token provided by Terra is called Luna with a fixed supply, creating rewards from Terra transactions.
With the boom of the Decentralized economy, DApps (Decentralized Application) are beginning to realize the importance of price stabilization for digital currencies. Especially in utility token projects, it is difficult to build an economy on tokens that have been subject to price speculation because we can easily see that, with the coin price rising and falling abnormally with margins. as large as it is today, it's almost impossible to build a trading system based on those coins.
Therefore, although there have been more than 2 years of development with a lot of digital currencies on the market, there is still no commercial system that is really stable and uses digital money to do so. payment unit. Since then, many people have seen great opportunities from the development of a virtual currency with a stable price (Imagine that cryptocurrencies can actually perform the role of a "currency"), or have can be called a "stable-coin". However, building a stable coin requires an extremely complex system, from economic organization to technical platform. So, despite the huge potential, so far, no stablecoins have really been successful, even USDT has encountered many problems as we have seen recently, and rumors related to it. Bitfinex from Q3 - Q4 2017.
Land is a decentralized stablecoin that can expand and narrow the supply chain to stabilize unit prices. With a superiority over fiat currencies, Terra operates under decentralized protection in terms of solvency, eliminating the risk of errors and 'Soros attacks'. In addition, Terra participates in decentralized financial spending, ensuring that economic growth is distributed fairly through a democratic consensus mechanism, rather than a political system composed of Delegates are elected.
Binance Labs, when investing in Terra, said that Stablecoins are extremely important to the ecosystem (Crypto) and they are happy to support the Terra team:
In addition to Binance, Terra is also invested by other very large exchanges in the world such as Upbit, Huobi Capital, OKEx.
To be able to operate a currency using a decentralized protocol, that currency must provide a reserve with taxes collected from its network. Terra can do this by calculating transaction fees from the blockchain network, as taxes are also the transaction fee on a national payment network. However, unlike fiat currency schemes, a protocol currency program must maintain a full reserve containing decentralized assets. By maintaining a fully decentralized reserve, the system can operate through ensuring the solvency of fully financed contractions.
Land will be deployed on multiple trading platforms, as a medium of exchange when purchasing products and services. The value of the token will be tied to a fiat currency, such as US dollars (for the time being). The reserve token provided by Terra called Luna comes with a fixed supply. The Luna token generates rewards from Terra transactions and therefore appreciates value through the use of the Terra protocol. As you can see, Terra has the potential to become a real "money" on Crypto rather than just a value for exchanges on exchanges.
When it comes to the "power" of a coin, many people often think of technological breakthroughs or ideas. But in fact, a large and stable ecosystem is the decisive reason for the sustainability of the coin, because the new ecosystem is a place that can ensure liquidity, as well as create historical value. Practical use of corresponding cryptocurrency.
The company behind Terra, TMON (Ticket Monster) is one of the 10 largest e-commerce companies in Korea, with a company value of US $ 3.5 billion. Daniel Shin, founder of TMON and founder of Terra, said: "Imagine Amazon and click on "Terra pay" at checkout. You don't need wallets and other frills. All you know is that there is a better deal”. For simplicity's sake, one could imagine Terra as Alipay on Blockchain.
With a billion dollar e-commerce platform and a League With e-commerce of more than 40 million active users, Terra is completely grounded in its goal of becoming a practical application stablecoin, not merely an intermediary for speculation on exchanges. Translate cryptocurrency like most stablecoins now. This active e-commerce alliance creates an ecosystem with $ 25 billion for a real large liquidity when Terra is applied.
TMON (Ticket Monster)
Ticket Monster Inc. was founded in 2010 by Daniel Shin and is one of the leading e-commerce companies in Korea today. In 2014, 70% of Ticket Monster's transactions were completed on mobile devices and its customer base continues to expand to various age segments. The company operates in three main verticals - Goods, Local and Travel - and supplies more than 47,000 SKUs (Stock Keeping Unit) through a partnership with about 15,000 sellers.
After two acquisitions of Living Social and then Groupon, the Korean e-commerce company loses its foundational strength as its Western partners have evolved from social commerce to selling pure products. In 2015, TMON separated from Groupon with an investment from KKR and Shin's private equity fund, regained control of the company, and brought TMON back to being a respectable competitor in the race. fierce e-commerce in South Korea.
Tiki.vn - a member of Terra Alliance
A very familiar name at Việt Nam with visits of 35 million per month. Tiki is an e-commerce site with a strong foundation and large number of loyal users. Born as a website selling books, after 7 years, Tiki became the leading e-commerce site, the inspiring Tiki story about an Amazon Vietnam. Tiki is one of the most invested company in Vietnam to date. In January 1, Tiki confirmed a partnership with JD.com, a leading e-commerce platform in China, as well as Alibaba's main competitor.
Terra Alliance (Terra Alliance) continues to expand. With deep ties in the e-commerce industry, Daniel Shin and Terra are creating a strong digital economy for Terra's practical applications, even if the stablecoin is not yet born.
Support from many major funds
In the long run, Terra's potential is very clear. However, the Terra team is not only concerned with distant vision. Even in the cryptocurrency market, Terra has really big partners supporting the project.
With a strong background and wide relationship, Terra attracts the investment of Kakao Ventures, Kakao Investment, Dunamu & Partners, Hashed, ... all of the largest and prestigious investment institutions in Korea, where their main operations are located. of the TMON e-commerce platform. But not only Korea, Terra also receives investments from a series of other large investment funds such as 1kx, Kenetic, GBIC, Monex Group, Translink Capital, ... Or especially Polychain Capital, one of the top Crypto investment funds. The first is backed by Sequoia Capital, a leading reputable venture capital fund in America with successful deals such as Apple, Google, Oracle, PayPal, Stripe, YouTube, Instagram, Yahoo! and WhatsApp… Terra is the first and only project in Korea invested by Polychain Capital.
The project is currently supported by four of the world's largest cryptocurrency exchanges Upbit, Huobi Capital, OKEx, and Binance, all of whom have teamed up with Terra for $ 32 million. Invested by major exchanges, listing on exchanges is not an issue for Terra. Exchanges will not let the project they invest be depreciated, so they will have the necessary support. More specifically, the investment agreement is a token-based investment cycle rather than a equity investment, which helps to ensure that the token value is guaranteed upon launch and public listing. Terra plans to hold a private sale within a few weeks to get more money to keep Terra stable.
Terra stablecoin model
The Terra protocol guarantees solvency by a full reserve, helping to retain its value from the transaction fees collected from the network. The protocol operates through solvency assurance, ensuring that the market value of the reserve is greater than the value of Terra in circulation.
For each predefined time period, the protocol participates in the following mechanisms to stabilize Terra's price: Estimate prices through deposit holder votes and Maintain full reserves ( Full Reserve)
- Estimated price via deposit holder vote: Terra's current price estimation protocols relate to the assets it attaches to by depositing the number of votes (in stock value) of depositors in Stability.
- Maintain full reserves: The protocol maintains a "stable reserve" made up of user deposits with various bonuses to ensure over-reserved systems. Protocol identification Luna token with a fixed supply that generates bonuses from Terra's transactions, is paid for contributions to the system's price stability and fairness. User is okay Encourage deposit of Luna to the Reserve, because deposits bring income from transaction fees earned from the network. Protocol A small variable fee applies from Terra transactions, adjusted to ensure that the market value of Stability Reserve exceeds Terra's circulating supply.
Terra system stabilizes prices by expanding and narrowing the money supply: Protocol to expand and narrow the supply of Terra tokens to correct exchange rates, taking advantage of the Theory of money amount of direct money supply quan = price.
- When Terra's exchange rate is lower than the fixed price, Reserve fund bought off Terra from the market and burned it, narrowing the money supply to the price = money supply.
- When Terra's exchange rate is less than the fixed price, the system creates new Terra and get proposals / votes from Luna shareholders to engage in decentralized financial spending to improve the system.
Thus, although Terra is stablecoin, but Luna token It is very important to help Terra's price. Luna is a decentralized asset that provides value to the reserve fund, while helping to make the system of Terra transparent and distributed. Terra maintains the price as Stablecoin but Luna, with a limited supply, will increase the price according to the system's actual application value as well as market demand. Staking Luna into the reserve fund also benefits Terra's transaction costs on the system, which is expected to be heavily traded if Terra applies to the e-commerce ecosystem the development team is building.
Information about Luna tokens and Terra stablecoins:
- Supply: 1 billion tokens
- Luna and Terra tokens will be locked for 3 months after going to the floor. After that, Luna will be vesting every month for the next 6 months, and Terra for 15 months
- Luna token distribution: 40% - for Terra Alliance partners, the ecosystem and first strategic investors; 20% - for the Stabilization Reserve Fund; 20% - reserved for team members; 20% - for both Private-Sale and Public-Sale investors
From mathematicians to scientists and financial experts, with backgrounds from various companies like Apple, Microsoft and the Federal Reserve Bank of New York, this group brings a wealth of skills that make up the protocol. Terra.
Daniel Shin is one of the co-founders. He is also the founder and CEO of TicketMonster, Korea's leading e-commerce platform. He is also the co-founder and board member of Fast Track Asia, a company that has established and sold many other businesses such as Fast Five and FoodFly. Daniel is well known for his expertise and deep network in e-commerce. He holds a Bachelor of Economics from Wharton Undergrad School.
Do Kwon is another co-founder of Terra. He also founded and is the CEO of Anyfi. During his time at Anyfi, Do Kwon co-founded and holds a number of important company patents for decentralized network and routing systems. He is also a software engineer at Microsoft and Apple, and graduated with Computer Science from Stanford University.
Nicholas Platias is the Research Manager. Previously founding Guru Labs, he also developed algorithms and distributed systems at Nest and RelatelQ. Nicholas studied Math and Computer Science at Stanford and has won many medals at the International Math Olympiad.
Evan Kereiakes is a financial researcher. He has worked at the Federal Reserve Bank of New York for over 7 years. He is the Japan Portfolio Manager for the foreign exchange reserves portfolio. Prior to that, he was an economic analyst at the US Treasury, also working with the White House Economic Council. Evan studied engineering at Duke and University of Illinois, also had an MBA from the University of Chicago.
Don Kim is the Sales Director. Don is the Business Development Manager at Korea's crypto exchange GOPAX. Before that, he was a military diplomat for the Korean Air Force and studied Government at Harvard.
Wayne Shu Be the head of strategy. After leaving Stanford to participate in many projects, Wayne saw the potential for cryptocurrencies to change the way modern financial works work.
KJ Lee is the product leader. He brought to the table eighteen years of experience in project management and development. KJ, also former Development Manager at Mesh Korea, also passed TicketMonster as the Product Owner. He specializes in logistics, supply chain and payment processes.
CJ Han is the Chief Financial Officer. With eight years of experience in portfolio management as well as in fixed income, currency and commodity trading, he also holds a Bachelor of Economics degree from the University of Pennsylvania.
Gigi Kwon is the Communications Manager. She is the Chief Marketing Officer at Uber, Regional Director of corporate marketing and CRM of Eats Uber and paid online campaigns. Gigi is also a former associate at a New York-based PR agency, holding the position of Communications at the University of Pennsylvania.
Compared to other decentralized stablecoins: MarkerDao (DAI)
Currently, the MakerDao and stablecoin DAI platform restricts the use of the real world in addition to margin lending to fund cryptocurrency trading. Dai can be purchased and used by most people, but it still faces many obstacles in trying to expand applicability, application areas, and access to financial services. For example, no standard business will create a DAI (basically a DAI loan) on the platform because you will have to risk losing your collateral in the hands of a "keeper" overnight. and the next day when I wake up, I feel 15% poorer.
Terra achieved stability for the basket of money by adjusting the money supply, using stable Luna tokens to sign money supply contracts as needed. Luna was initially converted to fiat currencies and charged a small transaction fee on Terra transactions. This gives Luna a true utility as a stabilizing mechanism because its value is converted by global legal currencies and Terra transaction fees, which is an approach different from that of Maker Luna owners are implementing a utility for the benefit of the ecosystem, such as putting their tokens in a stability reserve or earning these transaction fees. It is important to note that your assets will not be confiscated as in the MakerDao model.
Decentralized solutions should reduce costs for the largest number of users, instead of increasing costs. Therefore, the MakerDao and Dai protocols have yet to address the optimal use case of stablecoins - creating a decentralized currency that will be widely used by people in everyday life. There are many other variations on the MakerDao model, such as Havven, BitShares, but all of them have the same function: there is a flaw in the protocol design that costs them money and prevents adoption. indeed, or worse will cause significant losses.
Despite the vast ecosystem. However, Terra has just begun to develop the cryptocurrency community. The first information Terra made available to the public was news of a range of large exchanges and funds that had invested in Terra. On the Terra project, Telegram attracted more than 3,300 members. The project is still in the pre-sale phase, communication and marketing activities have not been promoted by the team. But in the community began to appear more sharing information about this potential project. Quite a lot of pre-sale pools have started to deal with projects with quite different prices.
Currently, Terra is preparing to enter the Pre-Sale stage, details will be updated by Blogtienao in the shortest time. If you are interested in this project, you can follow Blogtienao or the information channels below!
In addition, in the near future, Tiki will have a livestream with Terra's representative in Vietnam - Mr. Hoang Linh (CEO of Insight Group). Information will be updated on Terra Vietnam's media channel
Information channels about Terra:
Telegram Group: https://t.me/terravietnam
Telegram Channel: https://t.me/terravietnamchannel