south korean ecommerce; korean customers are plugged in
Unique position in DeFi because not part of the Ethereum ecosystem like most others, blockchain is Tendermint based and part of Cosmos ecosystem
Made back in 2018, was related to KR ecommerce because one of the founders also worked on a large ecommerce site in Korea. Daniel Shin, who made the ecommerce platform TicketMonster
It's a stablecoin that uses the Luna system for pegging
The Terra network achieves price stability by algorithmically adjusting its supply based on fluctuations in demand. Once it detects that a Terra stablecoin has deviated from its peg, it will apply pressure to correct the deviation.
The protocol makes use of natural market forces to achieve this. For instance, if the price of 1 TerraUSD ([UST](<https://www.coingecko.com/en/coins/terra-usd>)) is above its $1 US dollar peg, the protocol must compensate by increasing the supply of UST. It mints some of the stablecoin and sells them on the open market. Arbitrageurs can then swap $1 US dollar worth of Luna in exchange for 1 TerraUSD and stand to profit. Minting and swapping occur until the supply of new UST is sufficient to bring back UST’s peg.
Likewise, should the price of 1 TerraUSD drop below its $1 US dollar target, the protocol will decrease the supply of the stablecoin. It mints Luna and sells them on the open market. Profit seekers can then exchange 1 UST for $1 US dollar worth of Luna and pocket the difference. In both cases, the Terra protocol prints as much stablecoin or Luna as necessary until the peg for each asset is satisfied.
The protocol thus serves as a market-maker for Terra/Luna swaps. So long as there is a certain level of demand within the Terra ecosystem, either driven by Luna’s value or Terra’s transactions, the exchange of value between both assets preserves stability and mitigates volatility. To learn more about Terra’s price peg and the role that Luna plays in this mechanism, you can check out Terra’s [stability mechanism](<https://docs.terra.money/stablecoin.html>) page or its [whitepaper](<https://terra.money/Terra_White_paper.pdf>).
Read that it generates $13M in fees annually, is this scalable? what's the future of fees with terra
This is acts like Stripe, so what differentiates it from Flexa?
What's the future? Extend into other countries and continents or conquer Korea first?
Terra is a platform for creating stablecoins and synthetic assets pegged to various currencies and instruments. Their first product, the TerraKRW pegged to the South Korean won, is key to powering the Chai payments app, an e-commerce wallet with over 2 million users and $1.2 billion in transaction volume to date. Terra has since expanded to other assets, including the U.S. dollar and U.S. equities, allowing anyone anywhere to buy tokens that follow the price of stocks like Tesla or Apple. The company is planning to expand its services to additional assets and savings products and grow its presence in Southeast Asia. Pantera participated in Terra’s $25 million funding round.
Articles for reference:
https://techcrunch.com/2018/08/29/terra/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAKJ0bnZBOjTAWWofP0r4FS6vkDsTC_T4GAMdk-5v9WJxCTHCJOjjHBfV_gYXDGJL8mJ231V_EimDjWWuVyXhOAGB_IHe0swxAGNwHFiSjbzyKwGUPjwYvZxY2Hpev39TVNADcQsDuKgxJKZn4uu4mJVkaDaT9bhlFElDnxsN1fKr
https://www.coindesk.com/galaxy-coinbase-bet-25m-on-defi-using-terra-stablecoins