Earth and Moon for Cryptocurrency

The Earth Protocol Creates Arithmetic stablecoins which constantly tracks the price of any fiat currency (a government-backed currency such as the US dollar or the euro)., the leader in comparing the best platforms online tradeIn this article, he explores two cryptocurrency tokens, the Earth and the Moon.

Two cryptocurrency tokens are ground And moon Which has the following characteristics:

  • Terra stands for the open source blockchain protocol it supports Arithmetic stablecoins and a growing network of financial applications.
  • Terra stablecoins track the prices of fiat currencies such as the US dollar and the euro. Other Terra stablecoin labels include LandUSD (FSO)which refers to the US dollar, and TerraKRW (KRT)which tracks the South Korean won. Users instrument the new Earth by burning the moon which is used instead for Governance and mining.
  • The Land Protocol maintains a stable currency price for the Land by ensuring that Supply and demand are always in balance. This is achieved by using The Moon as a Variable Counterweight for the Terra Stable Coin.
  • Luna absorbs the volatility of the Earth’s stablecoins. Users send Luna to Miners From Terra blockchain (i auditors), who record and verify transactions on the platform and charge transaction fees as compensation. The value of the moon increases with the increase in land use.

How does Terra . work?

The Terra protocol protects the price of the Terra stablecoin from fluctuations by ensuring that supply and demand are always in balance.

Luna is the variable counterweight to the Terra stablecoin and absorbs its volatility. To understand how the Earth works, imagine that the entire “economy” of the Earth consists of a single magnitude (Pool) From the earth and the blessing of the moon. To maintain the price of the Earth, the Moon pool increases or decreases the Earth’s supply. Users consume Luna for the Earth’s currency in reverse.

This is achieved thanks to the protocol’s algorithmic market module, which incentivizes the minting or elimination of Terra through arbitrage opportunities.

  • L ‘Terra Pool Expansion Occurs when the price of the cryptocurrency is high compared to your price Pegging (reference vs basic exchange rate)This means that the demand for the stablecoin is higher than the supply. In this case, the protocol encourages users to mint the Terra (decreasing its price with an expanded offer) by adjusting the price of Luna (decreasing its supply). Users continue this arbitrage process until the Terra trades at the target peg price.
  • Earth pool shrinkage It occurs when the price of a coin is lower than its price, so the supply of the stablecoin is greater than the demand. In this case, the protocol encourages users to burn Earth (increasing price while decreasing supply) and Luna coin (price decreases with increased supply). Once again, the arbitrage process continues until Terra trades at its target price.

Earth Rewards

Terra protocol incentivizes miners on the Terra blockchain and i Delegates (users who want rewards without managing a full node) In two ways:

  • gas commissions Additions to transactions to cover the cost of processing them and to avoid unsolicited emails. Each auditor can set a minimum value for them.
  • Stability fee Add to each transaction to provide market stability. These, in turn, are divided into Tobin tax (percentage added to any exchange between Stablecoins Terra) and Commission spread(a percentage added to the value of any exchange between Earth and Moon) which amounts to at least 0.5%

land development

Terraform Laboratories south korean company Do Kwon And Daniel Shin Created in 2018, they developed the Terra.
The April 2019 white paper written by Du Kwon with three other co-authors outlines a business rationale for the development of Terra by proposing a growth-oriented, price-stable cryptocurrency with a combination of the best features of fiat and fiat currencies. Bitcoin In order to become useful as a medium of exchange.

Earth and Moon ecosystem

Terra aims to become a stable payment service provider for coins and decentralized finance (DeFi) The leader in e-commerce. Its ecosystem is growing in the crypto space with more than 70 projects including DeFi, Web 3.0 and Non-fungible tokens (NFT). These projects include

  • chai: a ‘Payment app With more than 2 million users in South Korea
  • Lotera: A decentralized lottery platform built on the Terra blockchain
  • mirror protocol: Allows the creation of exchangeable or “synthetic” goods that track the prices of goods in the real world
  • Talis Protocol: A platform where artists can sell their creations and provide services
  • vega protocolDerivatives issuance and trading platform

SEC filing against Terraform Labs and its CEO

On November 12, 2021, a Securities and Exchange Commission (SEC) Has filed a subpoena against Terraform Labs, its co-founder and CEO, Do Kwon, in connection with the ecosystem project mirror protocol. The application allows you to create digital assets called mAssets, which reflects real-world assets, including the price of US securities. The Securities and Exchange Commission (SEC) has announced that it is investigating whether the Company and/or Kwon violated federal securities laws by selling swaps involving these assets, acting as an unregistered broker or dealer without accounting for transactions, or engaging in securities transactions. The company is not registered in the appropriate records.

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