Terra (Luna) is one of the most interesting ecosystems of DeFi because it is different from all other blockchains.
First of all, Terra is based on modularity and interoperability with all other blockchains (thanks to the infrastructure provided by Cosmos).
About 50 platforms have been built on Terra. The pillar of the Terra blockchain is the UST stablecoin (where I can receive a APY of around 20%).
How can I buy UST? I can use Kucoin by making the withdrawal directly into my Terra wallet (TerraStation) or use the Luna / UST mint.
HOW THE STABLECOIN UST WORKS
How is UST created? 1 UST is equivalent to 1 dollar of Luna (which is destroyed or tied up) so hypothetically I could buy Luna to create UST (the Luna tokens are partly destroyed and partly end up in the CommunityPool). What does this mean? That Luna's price depends on UST demand.
1) If UST drops below $ 1 there is an incentive to buy UST spot (by increasing its price) and convert it into 1 dollar of the Luna (it would be convenient). If there is a lot of demand for UST -> increase the supply (I burn the Luna and create UST)
2) If UST is worth more than $ 1, there is an incentive to transform Luna into UST, selling it on the spot (this is also convenient). If there is little demand for UST -> the supply decreases (I create Luna and burn UST)
What are the protections of the two tokens? How is the "peg" maintained? About 1/3 of the Luna are bound for 21 days, in addition for creation / burn there is a slippage of 2% (volume of 100 million per day, then the slippage increases).
LUNA STAKING: TERRASTATION
I can use the Luna to create UST but I can also stake them (7.39%) by downloading the wallet TerraStation
Staking is not very inflationary: UST and new Terra ecosystem tokens are distributed (not only Luna). To create one of the stablecoins I go to "swap".
UST STAKING: ANCHOR PROTOCOL (SIMILAR TO AAVE)
Here (Anchor Protocol) I can stake stable UST at 19.43% (I will receive UST). It is a lending platform where the lender lends his UST, while the borrower deposits collateral (bLuna).
Where do I get bLuna? Through the "Bond" function on Anchor itself (you just need to have Luna in your wallet).
Other collaterals will be added later: Polkadot, Cosmos, Ethereum and Solana. The collateral must be at least double the amount lent.
MIRROR PROTOCOL (SIMILAR TO SYNTHETIX NETWORK)
On this platform (Mirror Finance) I find shares and assets that can be tokenized. What do I find?
1) Trade
2) Borrow (I can put as collateral 200% of UST or aUST that I get from UST staking on Anchor Protocol)
3) Farm
What will I do with the action (borrow)? I can sell it or I can put it on the farm! There are two farms:
1) Long
2) Short
Long: let's assume I bought mGOOGL, I will provide liquidity in the form of mGOOGL and UST. Now the APY is 34% (I am paid in mGOOGL tokens and I take the fees deriving from the trades on Mirror).
Short: the short mechanism is based on the prices of the shares taken by TerraSwap which are a little higher than the real ones (there is no oracle to watch over this). This is evidenced by the percentage under the "premium" heading. I choose a collateral (UST, aUST or Luna).
Some bridges: Matic-> Xpollinate -> BSC & ETH -> Terra Bridge
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