Two weeks have passed in this year 2022 and the crypto market does not seem to impose any particular rhythm, upwards or downwards. In these periods of wavering, why not find out about new projects and increase your culture of the ecosystem? This is the whole point of this article! Available on the Litebit exchange, like many other tokens, the Terra project and its LUNA have not finished revealing all their facets! Let’s go into the details of the project currently ranked 9th largest market cap in the ecosystem.
Litebit, European nugget!
But before presenting the project highlighted today, it is appropriate to present the exchange Litebit. Founded in 2013 in the Netherlands, Litebit is a broker of cryptocurrencies. It allows you to buy, sell and keep more than 60 cryptocurrencies. As a reminder, we recently presented all the cryptocurrencies available on the exchange, then 45 in number. This increase reflects the dynamism of the project and its desire to offer an ever more diversified offer to its customers.
Regarding its reliability, the exchange has been registered with the Autorité des marchés financiers (AMF) since 2021. In possession of the precious sesame, the PSAN certification (Provider on digital assets), Litebit has therefore become a regulated company in France. The platform therefore plans to settle permanently in France and continues to develop across Europe.
The Terra project, supporting monetary innovation!
Terra’s goal is as simple as it is ambitious: to offer decentralized stable digital currencies, accessible to everyone! The project’s white paper indicates a real desire to combine the ubiquity of classic fiat currencies with decentralization.
The development of the Korean project began in 2018 and its main network launched in 2019. You will notice that this project is relatively young compared to the other cryptocurrencies present in the top 10. Indeed, the project was able to convince quickly by the relevance of its technology and is now at the top of the basket!
First, you should know that the Terra project issues the UST stablecoin pegged to the US dollar. Spearhead of the project, the UST is today the flagship product of the Terra ecosystem inasmuch as decentralized stablecoin.
What is the difference with traditional stablecoins will you tell me? Many things I will answer you!
Commonly called ” algorithmic stablecoin“, the UST is governed by computer mechanisms allowing it to remain stable. Unlike USDT for example, issued by the company Tether and backed by existing real dollars, UST is managed by algorithms. These latter ” burn ” Where ” print » of USTs according to price fluctuations. This mechanism adds a layer of security to stablecoins, preventing any individual at the head of the project from “running off with the cash”. This mechanism is also available for other stablecoins indexed on the Korean won or the euro for example.
The LUNA token
Like many projects, Terra introduced its governance token: the LUNA. Available on the Litebit exchange, this token controls the balance of the Terra ecosystem. First, providing LUNA liquidity to the protocol helps strengthen the mechanism. Indeed, the LUNA serves as collateral for the UST. If the algorithm detects an increase in the price of UST, LUNA suppliers receive UST. Conversely, if the price falls, USTs are withdrawn from circulation and users receive LUNAs. Thanks to this mechanism, the UST is constantly worth $1 and the LUNA is used to guarantee this postulate.
Secondly, the LUNA makes it possible to pay transaction fees on the blockchain. Based on Cosmos technology, Terra runs on all major blockchains. Indeed, Cosmos specializes in interoperability between blockchains and therefore promotes the adoption of many projects, including Terra!
Litebit is full of innovative projects with impressive performances. Currently at $85/€74.4, the Luna token does not does not seem ready to stop in such a good way. Trusted platform that is gaining power, Litebit added nearly 20 cryptocurrencies in 2 months. In the coming days, we will provide you with a detailed description of the projects added by the platform. Also note that Litebit has a mobile application, allowing you to keep an eye on the market in all circumstances. Investor friends, you know what you have to do!
Passionate about innovation and disruptive projects, Blockchain technologies quickly caught my attention! I enjoy evolving in this bubbling ecosystem and discovering all its facets! Why not share this with you?