Rise of the Terra Ecosystem
Yield farming took the crypto world by storm in mid 2020, with the births of DeFi protocols such as Compound, Synthetix, Yearn Finance, and more, leading to “DeFi summer 2020” euphoria. Everyday during the period, yield farms offered eye-popping Annual Percentage Yield (APY). However, the yield plummeted as more capital entered these farming protocols.
Initially concentrated on Ethereum, most of the yield farms have been expanding or building natively on other Ethereum Virtual Machine (EVM) chains, led by Binance Smart Chain (BSC) and Polygon. However, farms on other layer-1 blockchains have been few and far between, but that’s due to change.
Introducing Terra, a decentralized payment network that aims to rebuild the traditional payment system on the blockchain. Founded by Terraform Labs back in 2018, the Terra Blockchain is part of the Cosmos ecosystem and has since made inroads into the traditional payments space as well as crypto. Since its inception, the network has introduced three native stablecoins:
- TerraKRW (KRT) (Korean Won on Terra)
- TerraMNT (Mongolian Tögrög on Terra)
- TerraUST (UST) (USD on Terra).
One of its most popular products include Chai, a mobile payment app in South Korea. Terra has also partnered with the Mongolian government to accept TerraMNT for payment of utilities. Currently, there are over 2.7 million accounts on the Terra blockchain, with more being added everyday.
Source: CoinGecko Q1 2021 Report
Recently, the Terra ecosystem has been expanding rapidly with more projects building on it and