All liquidity, as on other DEXs, is contributed by the users themselves, in return for token rewards based on the amount of liquidity they provide for each trading pair.
Metaverse and gaming applications have made their mark on Terra as well. The recently launched StarTerra, which calls itself a gamified launchpad that supports NFT integration, locks up $21 million in value, while LoTerra, a decentralized lottery, holds over $311,000 in value.
The increase in TVL on Terra coincided with the rising prices of its LUNA tokens. Prices are up 54% compared to the past week, trading at all-time highs of $83 on Tuesday morning, as per data from CoinGecko.
LUNA was one of the strongest-performing cryptocurrencies in the past month even as the broader market tumbled.
In addition, TVL on TerraSwap, a decentralized exchange based on Terra, jumped 81% compared to last week, up to over $ 2 billion.
That said, the Terra ecosystem is still young. Unlike the BSC and its 213 decentralized applications, Terra only supports 13 protocols at the time of this writing. So that’s more than $ 1.6 billion per protocol on average, compared to $ 73 million on the BSC.
👉 To deepen – The UST of Terra (LUNA) overtakes the DAI to become the 4th capitalization of stablecoins
LUNA prints new $ 101 ATH
As a Christmas present for its users, the LUNA, a native token of the Terra network, exceeded $ 100 this Friday, December 24.
Analysis terra defi dec. binance smart chain
Decentralized payments network Terra is now the second-largest blockchain for decentralized finance (DeFi) protocols in terms of total value locked (TVL). Terra, which is behind Ethereum, crossed Binance Smart Chain (BSC) this week.
On Terra, 13 projects lock over $18.2 billion in value, data from analytics tool DeFiLlama show. That’s over $1.4 billion per protocol on average compared to an average of $73 million per protocol on BSC, which has $16.5 billion locked on 225 protocols.
The figures are a near 42,000% increase compared to December 2020, when DeFi projects on Terra held a relatively smaller $42 million in value.
Ethereum retains the DeFi crown with $152 billion in value locked on 361 protocols.
Analysis terra defi dec. binance smart-
According to industry data, Terra (LUNA) has had a 68% increase from its December 1 total value locked TVL of $11.9 billion, to hit a record high of $20.05 billion TVL. That is, in under a month, users of the platform have continued to invest nonstop into the protocol in order to earn staking rewards.
Meanwhile, the price of LUNA — Terra’s native token, is also seeing a steady rise as it currently trades above $92 with a 31% surge in just a week, according to data from CoinMarketCap. The coin now has a total market capitalization of $33.9 billion, ranking 9th on the list of crypto projects.
LUNA Becomes The 2nd Largest Decentralized Finance Network
Ethereum remains way ahead of all decentralized finance DeFi networks in terms of TVL with $155.7 billion in TVL.
Analysis terra defi dec. binance smart-03
This December 20, 2021, the Binance Smart Chain was overtaken by the Terra blockchain (LUNA) in terms of total value blocked on-chain.
According to data from the DeFi Llama analysis tool, the TVL in decentralized finance protocols on Terra recently crossed the $ 21 billion mark, against 17 billion for the BSC. This makes it the largest DeFi ecosystem after Ethereum.
Ranking of DeFi ecosystems by total blocked value (TVL) – Source: DeFi Llama
The explosion of the ecosystem has brought with it the emergence of certain protocols. Almost 43% (more than $ 9 billion) of the total value is stuck on Anchor, a yield-generating application based on stablecoins.
Analysis terra defi dec. binance smart-06
In January 2021, decentralized finance (DeFi) was mainly focused on one and the same blockchain: Ethereum (ETH). Moreover, the ecosystem alone captured nearly 97% of the total value blocked (TVL) on-chain, or about 10.5 billion dollars at the time.
Within a year, the DeFi landscape has completely evolved. New blockchains have imposed themselves on users, at the expense of Ethereum.
Faced with its exorbitant fees, users naturally turned to less expensive options, such as Binance Smart Chain (BSC), Avalanche (AVAX), Solana (SOL) or even second layer solutions such as Polygon (MATIC).
In this year 2021, it is probably the BSC that experienced the strongest craze.
For example, the Terra community voted to burn around 10% of the LUNA token supply worth approximately $4 billion in October.
The increasing demand for UST, Terra’s native, algorithmically-pegged stablecoin, also affects LUNA’s price. UST can be minted by burning $1 worth of LUNA in exchange, decreasing the LUNA supply as more stablecoins are produced.
While LUNA’s price appreciation has helped Terra become the second-largest DeFi network, the launch of new protocols has also attracted more liquidity. Astroport, a new decentralized exchange launching on Terra, has brought more money into the ecosystem with its highly-anticipated ‘lockdrop.’
Users who lock up their liquidity in the protocol will receive ASTRO token airdrops depending on the amount of time they lock up their assets.
Providing Liquidity on Twindex
When a trader uses Twindex to do a swap, they pay a 0.3% charge, of which 83.33 % is split fairly among the liquidity providers of the swap routes and the rest goes to the platform.
Available Liquidity Pools:
- KUSD-tJPP – APR: 140.59%
- KUSD-tEURO – APR: 135.48%
- KUSD-tXAU – APR: 65.25%
- KUSD-tAAPL – APR: 470.05%
- KUSD-tTSLA – APR: 402.42%
- KUSD-tARKK – APR: 403.64%
- KUSD-tBAC – APR: 398.58%
- KUSD-tCOIN – APR: 376.58%
- KUSD-tSPY – APR: 345.86%
- KUSD-tMRNA – APR: 323.37%
- KUSD-tTSM – APR: 412.7%
- KUSD-tFB – APR: 222.97%
- KUSD-tBRK.B – APR: 432.9%
- KUSD-tNVDA – APR: 470.82%
- KUSD-tBIDU – APR: 443.37%
- KUSD-tGBP – APR: 228.3%
You will earn Liquidity Pool (LP) tokens when you deposit your stablecoins into a liquidity pool.
DeFi projects rely on smart contracts instead of middlemen for financial services such as lending, trading, and borrowing.
DeFi heats up on Terra
Leading the TVL charts on Terra is Anchor, a savings protocol offering low-volatile yields on Terra stablecoin deposits. Anchor locks over $7.7 billion in value and accounts for 42% of Terra’s TVL. Anchor users accrue rewards through a diversified stream of staked rewards from major proof-of-stake blockchains.
Staked assets liquidity provider Lido is next on the list with over $5.4 billion in TVL.
In third place is decentralized exchange (DEX) Terraswap, which has seen its TVL increase over 95% in the past week. Terraswap matches peer-to-peer trades between users using Terra’s smart contracts.
The network surpassed Binance Smart Chain in total value locked in DeFi protocols over the weekend, as its native LUNA token climbed to new all-time highs.
Currently, Terra hosts over $18 billion worth of assets across its 13 DeFi protocols. A combination of increasing prices and liquidity from new protocols has propelled the total value locked on the network to the number two spot behind Ethereum.
Since breaking past its prior all-time high at the end of November, Terra’s LUNA token has soared, recovering quickly while the rest of the market dipped. Today, LUNA shot to a new all-time high of $84.92, putting it up more than 85% over the past month.
The diminishing supply of LUNA tokens on the market is likely pushing the price of LUNA higher.