Terra 2.0 — Hopium or not?
What do Bobby Ewing, Buffy the vampire slayer, John Snow from Game Of Thrones and LUNAtics all have in common? They all came back from the dead.
After losing its core to crypto and millions of people losing tens of billions of dollars,
The LUNAtics community voted overwhelmingly to revive the project and hence TERRA 2.0 was born.
The new project is called Terra Classic Or LUNC. It’s a new token without the stable coin UST.
My concern lies in deciding whether this new Luna has any potential or is it just hopium talk.
Reasons Terra 2.0 concerns me
Though almost 80% of the users voted against the fork, people played along with it just in the hopes of getting their assets back. However, one user claimed that she lost $300k in Luna while getting airdropped with only $59 worth of new coins.
Luna holders received 35% of new coins, in which only 30% can be used in trades
and the other 70% of these tokens get locked with a vesting period of 4 years.
This means funds are available in your wallet but cannot be traded or transfered until a period of time.
Do Kwon and ‘TRUST’
Throughout 2021, the LUNAtics multiplied as crypto saw its biggest boom to date. What happened later, took the entire crypto world by storm.
Terra suffered the greatest crash in crypto history. Deployed bitcoins were wasted — instead of being used to defend the peg, they were used to bail out UST whales after the peg had already failed. A lot of the BTC was going to arbitrageurs & shorters instead of UST holders/victims. It punished whoever believed Do’s tweets.
By this point, Kwon had put all his chips on the table, taking shots at prominent traders who doubted him. “Your size is not size,” he told Algod in response to an allegation that Terra was “a big ass Ponzi.”
Because Terra’s design mechanism was fragile, it allowed anyone with enough capital and the inclination to cause havoc, to make a killing off a relatively simple UST arbitrage trade.
As a result Do Kwon and his black swans were wiped out.
But the controversial leader Kwon was not done yet, so Terra developers relaunched the ecosystem with Terraform Labs removed. This time too, Kwon is assuring that Terra will land on the moon. Will it though? Only time will tell.
What keeps me hopeful about Terra 2.0
Despite the shortcomings and failure of Terra 1.0, there are some aspects of the new project that makes me want to believe in it.
Many decentralised apps have already appeared on the new Terra 2.0 platform. Here are Top 5 Projects launched on the Terra 2.0 (LUNA) chain that may bring true value to this ecosystem.
Astroport provides a swapping and liquidity feature on desktop and mobile devices. Three pools are live at launch:
LUNA-LUNAX: A stable swap pool with an amplification setting of 10 for Terra (LUNA) and Stader LunaX (LUNAX)
LUNA-axlUSDC: A constant product pool for Terra (LUNA) and Axelar USDC (axlUSDC)
axlUSDC-axlUSDT: A stable swap pool with an amplification setting of 25 for Axelar USDC (axlUSDC) and Axelar USDT (axlUSDT)
With the help of TerraswapUsers may swap and exchange native Terra and CW20 tokens directly from their wallets by integrating with the Terra Station browser extension. Terraswap will enable developers, liquidity providers, and traders to participate in an open and accessible financial marketplace.
The most recent project to go live on Terra 2.0 is STEAK. Steak is a liquid stacking protocol for $LUNA, whereby the protocol auto compounds staking rewards for users, while ApolloDAO describes itself as a yield aggregator and more to provide dApps and DAOs looking to redeploy on Terra2 an easy-to-use multisig Wallet.
Directly from ashes Phoenix premier decentralised exchange came to save lunatics Phoenix’s automated market maker and liquidity pool design claim to offer Terra’s community the finest on-chain trading experience.
With a single click, Terra 2.0 users can now transform Luna into LunaX and get auto-compounded staking rewards. LunaX offers you instant liquidity on DEXs and will soon unlock DeFi opportunities across the Terra 2.0 ecosystem.
With everything said and done, we can say that LUNA 2.0 and The ‘Luna’ are not really comparable in a compatibility sense. Terra 2.0 does things in a completely different way, and with different goals in mind. It has become an option for the loss and whatever just happened with LUNA
Terra 2.0 is a network that relies on the people and their will to make it work , which is where all this traffic that is clogging its network comes from.
In the end, we can say that Terra 1.0 was a more efficient and cleaner solution, although Terra 2.0 could still be effective, if it can bring more scalability. Scalability lies at the heart of most of its problems, and solving that issue would bring the project back to glory.
LUNAtics are working hard on achieving that, and for a long time now too. However, it is still very early to say if their efforts will bring a new dawn for the Terra LUNA community.