19 AUG 2021

What is Terra Luna?

Terra is a blockchain protocol that uses stable coins pegged to fiat currencies, stabilized algorithmically through its native token LUNA.

The entire network runs on a Proof of Stake (PoS) blockchain, where LUNA is the asset to stake and validate transactions through the network.

The algorithm working behind the network ensures that all the stablecoins within the Terra network are always pegged to their relative fiat currency.

The protocol makes use of natural market forces to achieve this.

As example:
If the price of 1 TerraEUR (EUT) is above its €1 euro peg, the protocol must compensate by increasing the supply of EUT. It mints some of the stablecoin and sells them on the open market then swaps €1 euro worth of Luna in exchange for 1 TerraEUR and stand to profit. Minting and swapping occur until the supply of new EUT is sufficient to bring back EUT's peg.

Almost the same happens when the price of 1 TerraEUR (EUT) drops below its €1 euro peg, the algorithm will decrease the EUT supply by minting LUNA and selling them on the market until the peg for each asset is satisfied.
Terra protocol is already used as a payment method, like in Korea where all the data can be viewed online on Chaiscan.

There are tons of other use cases of Terra, I recommend visiting the main website terra.money to explore all the features and the power of this gem.

What is the best exchange for buying Terra (LUNA)?
LUNA is currently available to trade on Yanda.io

Should I invest in LUNA (Terra) cryptocurrency?
Always invest in cryptocurrency what you can afford to lose, and don't follow free financial advice, do your own research.

Will Terra (LUNA) crypto reach €100 EUR?
This is very difficult to say, if LUNA touches €100 in value it will go over €400 Billion of market cap, becoming the second-largest cryptocurrency by market cap.

Data Source: CoinmarketCap

Author: Francesco Greco