Sirwin
Sirwin
https://twitter.com/InjectiveLabs/status/1468778097164144642/photo/1

TERRA x INJECTIVE PROTOCOL


A proposal with impact

The Terra protocol is experiencing growth which only extends dramatically since the Columbus-5 upgrade. Columbus-5 brought some major upgrades to the ecosystem, the utility token #LUNA, which is burned to mint Terra’s algorithmic UST stablecoin, is no longer being transferred to a community pool after burning. As a result, all #LUNA used to mint UST will now be burned permanently beside the existing community pool. Goal is a deflationary pressure and a stablecoin not pegged against USD with securities and therefore out of reach for regulations planned as e.g. by US SEC.

On the other hand major implications have had the upgrade to Stargate and the integration of IBC protocol, the integration of Ozone and Wormhole.

In the aftermath, plenty of projects launched using new features e.g., NFT creation, investment dashboards and derivatives.

 

IBC integration and partnerships

The upgrade to Stargate enables the integration of the Inter Blockchain Communication protocol which usually is referred as "IBC" and therefore provides support for a high amount of interchain use cases.

Recently, a Terra member called "The Intern" started a debate in the Injective Protocol governance forum discussing the benefits of an integration of UST. This debate was highly welcomed and made it into a proposal which recently was accepted. You can find his post here, I recommend it as it is very insightful and an example of how interoperability is the future of crypto :

Injective Hub

This very successful proposal created the bridge (active in Terra Station or using Cosmos Keplr app, able to secure via cold wallet such as Ledger) to enable an easy and cost effective transition of users from USDT to UST and further pairing into spot market/perpetuals e.g. UST/USDT. 

As both stablecoins have their fair discussions, USDT as attacked security by SEC and UST for an unsure safety of its algorithmic backing, it is quite obvious why the choice of UST is by far the more evil-resistant one for the Injective community. Injective core is focusing on decentralisation. Pairing with UST is a comforting new way to express this value.

  • #UST just passed stablecoin DAI and lists 20th in MCAP with ~9,5B.
  • #LUNA just entered TOP10 on place 9 in MCAP with ~32B.
    • Time of writing, 23rd. Dec.

Impact on markets

Indirectly Proposal 83 opened the door to much more than pairs/perpetuals "The Intern" mentioned as #UST became a quote currency on Injective Protocol to enable them to create any new spot/perpetual market with Luna or UST. This can and probably will lead eventually to either Terra or Injective members to create new perpetuals/spots for other native Terra assets. This kind of interoperability is the next step on crypto development, a DeFi 2.0 catalyst the markets needed. Too much money lays around untouched and now opens for liquidity.

"The Intern" did not only help the Terra Ecosystem to find new use cases for #UST and #Luna, he/she might have kickstarted new liquidity for all native Terra tokens, lead to further decentralisation of whole crypto and Injective Protocol, which heavily depended on a security such as USDT and makes Injective Protocol a possible focal hub for the Terra Blockchain.

I like to close with a summary @Terrian_ just updated and both protocols shared to their communities:

https://twitter.com/Terrians_/status/1472403222702661634/photo/1

Links:

Have a safe and happy Christmas.

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lolobu
lolobu

5years exposure to the cryptoverse. IT professional and ambassador for blockchain projects. Recently joined the revolutionary Multi Cross Chain Swap Protocol #KwikSwap Layer 2 Scaling powered by Ethereum, Polkadot, Plasm, Reef Chain, BSC & Acala Network


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