A few days back, Terra surpassed Binance Smart Chain in DeFi TVL. It climbed up to become the second-largest DeFi blockchain with more than $21 billion.
Which are the projects being built in this blockchain? What makes these dApps different? This article will uncover four exciting Terra Luna Projects building on Terra that hold tremendous potential to go to the moon.
1. Anchor Protocol
Anchor is one of the oldest DeFi protocols on Terra. According to DeFillama, this leading lending/borrowing platform is the Terra blockchain, with a dominance of 46.99% with a current TVL of $17.6 billion.
Using staking yields, money markets, and incentives on its native token, $ANC, the Anchor Protocol is an entirely decentralized fixed-income platform.
Source: Anchor Protocol
We love Anchor text because you can use it as a savings account with no minimum deposits and no KYC process. You need to create a terra station wallet and connect it to the platform to start using it.
Also, it offers easier integrations, where its open-source SDK can be integrated, with a few lines of code, to any app that handles balances.
In the platform, there are four tabs available:
- EARN: Users can deposit UST with an amazing 19.48% APY. There is no protocol with this level of profits. To make you have a better idea. In AAVE (Polygon chain), you earn 4.92% APY by depositing DAI.
Also, did you know that you can protect your deposits with a third-party assurance service like Unslashed, Nexus Mutual, InsurAce, or Bridge Mutual? Anchor has a very intuitive interface that makes it easy for you to secure their funds.
2. BORROW: In this tab, Anchor gives you not only the option to borrow money with a 17.82% APY but to ask for collateralized loans.
Also, this platform has a distribution APR of 16.07%, which makes the net APR -1.74%. In other words, instead of paying a % APR for your loans, the platform pays you 1.74%.
3. BOND: In this section, you can bond, burn and claim Anchor’s’sokens.
This means that you can bond $LUNA tokens to mint bLUNA tokens to be easily used in the protocol. Also, you can do the opposite process called “b”rn” “o get back LUNA tokens. However, this process takes 21 days.
4. GOVERN: Finally, in the governance tap, the platform gives you these investment alternatives:
a. Stake $ANC: you can stake the $ANC token with a 12.62% APR.
b. Liquidity Pool: In the ANC-UST LP, you can inject and withdraw that LP token with a 103.31% APR. There are currently more than 39 million LP tokens staked.
I've written a few guides on how to earn high interest on your stablecoins using #DeFi.
By far, the easiest and most passive (but also high yield) way is @anchor_protocol, which currently pays out ~19.5% APY in UST.
Let's see how that works. pic.twitter.com/GnbhvNf4o9
— shivsak.eth (@shivsakhuja) December 25, 2021
More About Terra
According to Conigecko, the $ANC token is currently trading at $3.42, a $655.9 million marketcap, and a 24-hour trading volume of $13.2 million. Also, its circulating supply represents 19% of the total supply, which is 1 billion tokens.
Also, Anchor’s’sokens use the Cw-20 standard where you can use 4:
- TerraUSD (UST): Terra’s stablecoin.
- Bonded Assets (bAssets): Used for collateralized loans.
- Anchor Terra (aTerra): Used for deposit funds.
- Anchor Token (ANC): This token is used for Anchor’s’sovernance protocol.
It’s’smportant to mention that UST and ANC are available in the Terra, BSC, and ethereum blockchain. You can pass them through these blockchains with the Shuttle bridge. Here is a guide to use it. Finally, there are $90.87 million $ANC staked tokens.
On the other hand, Anchor governance is set up to be the only authority to make protocol modifications or upgrades.
Following the initial deployment of Anchor smart contracts, the Anchor Gov contract is set by $ANC holders, which can be used to vote on governance proposals called “p”lls.”These are some examples of what kind of decisions that participants can make:
- Modify collateral features, market parameters, $ANC parameters, borrow interests, among others.
Finally, anyone can participate in Anchor protocol by going to the platform and connecting with a “T” or a Station wallet” “r a “W” let Connect.”Also, you can buy $ANC in Bitfinex, KuCoin, OKEx, or also with FIAT using Transak.
2. Mirror Protocol
Mirror is a DeFi protocol that has a Total Value locked worth $838 million because it promises the ability to trade equities 24/7 anywhere in the world by any person. The project does this by minting synthetic assets.
In this protocol, you can buy trade equities for big projects like Apple, Amazon, Airbnb, Alibaba group, Facebook, among others.
In short, Mirror protocol opens up the traditional financial world opportunities to crypto users. Users can take advantage of Mirror Protocol in 5 ways:
- As a Trader, you can trade $MIR, the Mirror Protocol token. I would say it’s’ available at a discount right now, as is every other crypto token right now. But after the Q1-2021 rally, the token did well and pumped to an ATH of $12.90. And if we are at the brink of the next alt season, MIR could rally hard again.
- As a minter, the protocol allows you to mint synthetics by depositing collateral and trading them on automated market makers. That means you can deposit your $UST, a stablecoin powered by Terra, and mint synthetic versions of real-world assets like Apple equities.
To keep you updated, $UST recently overtook DAI and became the 4th largest stablecoin by marketcap.
3. As liquidity providers, you can choose to farm different crypto tokens or synthetic equities. They offer a long and short farm option that yields APYs in the range of 0.13% to 22%.
4. The fourth way to earn with your idle MIR tokens is to stake them, earn staking rewards and participate in governance activities.
1/ The Mirror Web App
Like the protocol itself has always been, the front-end of the Mirror Web App is now fully decentralized. It has been open-sourced and is now hosted on @IPFS. https://t.co/Mo5RE4pVBp is now redirected to the IPFS-deployed version of the UI.
— Mirror Protocol (@mirror_protocol) November 15, 2021
At present, over $30 million MIR tokens have been staked. That is almost 22.65% of the total supply. It sounds like decent staking participation as staking APY’s’sre around 20%. If the staking participation goes up, we might experience a supply squeeze, expecting a price pump.
3. Nexus Protocol
Nexus protocol was developed to maximize yields in the Terra ecosystem, and how it promises to do so could be a huge game-changer.
Let’s’snderstand all this in a more straightforward way. When you use Anchor or Mirror protocol, you have to manually keep track of the LTV (Loan to value ratio) or collateral ratio. It is challenging and time-consuming, and Nexus protocol promises to change this and maximize yields and LTV.
Nexus’s’oncept was conceived during the brutal crypto market downturn in May of this year. When bLUNA liquidations accelerated into a cascading wave, this applied downward pressure on the LUNA price and caused several exogenous effects on Terra.
More About Nexus Protocol
Therefore, Nexus promises to solve this by offering Anchor and Mirror Vaults. While the bLuna/bETH Anchor vault is already live, the UST Mirror Vault is expected to come out by Q2 of 2022.
But, how do they maximize yields? So Instead of the original way of depositing bAssets, Nexus allows you to deposit with them, and they automate the rest of the process for you. Moreover, the main point of this kind of vault is that it uses a smart contract that will maintain a high LTV ratio for you, eliminating the risk of liquidation.
Scary night for everyone. Be safe out there.
— Nexus Protocol (Ψ,Ψ) (@NexusProtocol) December 4, 2021
On the other hand, take a look at the APR of this vault which is over 7.5%, and the TVL ratio is over 49%. We agree that is not much but, the value proposition is solid, and if they launch all the products in time, this could be a game-changer.
4. Loop Finance
Loop Finance is a decentralized exchange that has helped 75k+ you do 900k+ transactions with Terra’s’sokens. Nowadays, it has a TVL valued at $26 million.
Source: Loop Finance
In this platform, you can benefit in different ways:
- Community: Join its community and earn $LOOPR tokens by creating and rating articles and commenting on them.
- DEX: Users can trade a vast range of tokens. Also, you can provide liquidity to earn swap fees and LOOP tokens.
- DeFi NFT Marketplace: Users can mint and trade NFTs with fixed yields. This feature will be launched soon.
- Wallet: Users can look at all the Loop’s’sssets gathered in one place. Right now, it’s in test mode.
More About Loop Finance
Finally, the native token of LOOP Finance is $LOOP, which is currently trading at $0.19, which has a $15.6 million with a 24-hour trading volume of $62k. Also, its circulating supply represents 8% of the total supply, which is 1 billion tokens.
Nowadays, the cheapest way to buy $LOOP is in TerraSwap. On the other hand, you can stake $LOOP and get 596% APR.
Rewards are currently at 596% APR
STAKE: https://t.co/QbmEDILdOe pic.twitter.com/qJ3QKPesZX
— Loop Finance (@loop_finance) December 30, 2021
Finally, according to the roadmap, these are the most important milestones for 2022:
- Launch iOS &Android wallet apps
- Launch NFT staking
- Loop Chrome Extension
- Work with cross-chain launchpads to bring more projects.
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