Here at Coinchange, we’re all about innovation and expanding our horizons to new and alternative blockchains. After all, we want to provide our customers with the best possible options and user experience.
That’s why today, we’re pleased to announce that we’ve integrated Terra, a large and popular decentralized and permissionless Delegated Proof of Stake (PoS) blockchain, into our platform.
The integration with Terra is an important milestone for Coinchange, as those using our Earn Account will be able to tap into its massive ecosystem to reap additional rewards benefits and more broadly diversify their portfolios. At the time of writing, the entire Terra network has a TVL (Total Value Locked) of over $13 billion and powers over 100 projects across the DeFi, Web3, and NFT realms.
Terra’s blockchain boasts a powerful open infrastructure and online stable payment financial system, all supported by its vast stablecoin ecosystem - it was created to bring about the mass adoption of stable cryptocurrencies to combat traditional fiat assets.
The network offers seamless and instant transaction settlements, in addition to tremendous scalability and minuscule trading fees. Part of its core value proposition is that, via its technology, it acts as an attractive substitute for complex payments systems such as banking, credit cards, and other portals. Each stablecoin is pegged to some of the most popular global fiat currencies - Terra’s largest stable assets are TerraUSD ($UST) and TerraKRW ($KRT).
It’s made up of two different applications that enable lucrative DeFi (decentralized finance) features for users on the network. Anchor Protocol allows Terra stablecoin holders to generate high APYs on tokens within their wallets and take out short-term loans with liquid staked assets. Mirror Protocol allows participants to create synthetic fungible tokens, where their prices are determined based on the tracking of their associated real-world assets.
$LUNA is Terra’s native utility and governance token that can be staked for rewards, help uphold stablecoin prices, allow users to vote on future project proposals, and provide security for its blockchain.
Coinchange as a digital asset management company strives to maintain the highest standard of security and risk management with the highest return on crypto. Adding Terra as part of our multi-chain approach is the first step into enabling cross-chain execution of our strategies, accompanied with minimal risk. After a thorough risk assessment of Terra’s DPoS chain and bridges, we decided that adding it would help diversify our execution environment without significantly increasing the overall counterparty risk exposure of the algorithm.
Intrinsically, Terra’s blockchain integration will allow Coinchange to deploy strategies that are cheaper to maintain and operate since transaction fees cost a few dollars compared to hundreds on the Ethereum network.
Like in the Polygon PoS chain, Terra protocols incentivize liquidity migration from Ethereum in order to achieve long-term sustainability. Those incentives come in the form of increased APY for protocols that have shown a track record of maintaining high yield offerings in both heated and flat markets, which makes Terra’s blockchain a compelling opportunity.
Given that Terra is developed in Rust, it’s less compatible with Ethereum’s infrastructure than other EVM (Ethereum Virtual Machine) compatible chains. Nonetheless, this allows Terra to have a smaller attack surface on its smart contract when compared to Ethereum, which is due to the nature of its Rust implementation.
Thanks to its great documentation and SDK, it’s easy to deploy investment strategies and earn high and sustainable rewards. Terra’s protocol has an outsized risk to reward ratio, with only the its relative infancy (though it already settles over $2 million per month of real word purchases), Rust implementation (although it’s never been hacked), and DPoS consensus centralization risk noted as possible risks.