Terra (LUNA) Blockchain - Crypto Academy / S5W4 - Homework post for @pelon53.
Hello everyone,
In this post, there are assignments for this week's lecture by professor @pleon53. Without further ado, I would like to get into the topic and our topic is Terra Blockchain. Let's start!
1. What is Terra Station? Explore Terra Station on the web, download the Wallet and connect the wallet to Terra Station. Screenshots required.
Terra Station is the application of the Terra ecosystem and can be called its Wallet. The Terra ecosystem is a platform that has brought a new perspective to the crypto asset world and is trying to create a single blockchain where all needs can be met.
Terra Platform was founded by Daniel Shin and Do Kwon in 2018 and is based in South Korea. At its core, the Terra platform is not dependent on any other blockchain and its focus is on DeFi applications. In general, their main goal is to reduce the production of all fiat currencies in the world to the easiest. The local currency is the “LUNA” token.
Terra Station is a wallet that allows the storage of stable tokens such as LUNA and UST, the native currency of the Terra platform. Now let's explore Terra Station a bit.
Terra Station Application Review and Connect Wallet
The first thing we need to do is visit the station.terra platform. Then we press the "Connect" button. More than one option appears before us and we choose which of these options we want to use. In this section, I click the "Terra Station Extension" button. Then I automatically transfer me to the “Terra Station” Chrome extension and add me to the Chrome app.
Then I open my application from the “Extensions” section and click on the option to open a new wallet, since I do not have a “Terra Wallet”. Then, after filling the required information in this section and saving our Seed password, we open our wallet successfully.
Then we press the “Connect” button again and we have successfully connected our wallet to the platform.
After passing the Wallet section, the “Dashboard” section welcomes us at the top left. In this section, information screens such as “Lune Price”, “Tax rate”, “Issuance”, “Community pool”, “Staking ratio”, “Transaction volume” and “Staking return” welcome us.
Then, in the third option, there is the NFT partition. In this section, “Add Tokens” and “Marketplace” options welcome us.
When we come to our next option, there is the "History" section, and in this section, the transactions performed on the platform are listed. Since we have just opened our wallet and we have not taken any action, there is no information in this section.
The next section is “Staking”, and in this section we have our personal staking information. In addition, it is possible to reach comprehensive information about the nodes we will staking.
Our next section is the “Swap” section. In this section, we can access the stable currencies within the platform and the exchange rate of the platform. At the same time, in the light of this information, it is the section where we can perform the "Swap" process as we want.
Our next episode is “Governance”. In this section, we can vote for active offers or create a new offer. In addition, in this section, it is possible to see the accepted and rejected offers and their details.
Our next chapter is “Contracts”. In this section you can download or create smart contracts.
The screenshots without reference in this section were taken by me on the station.terra platform.
2. Explain Anchor Protocol, explore the app and link the Terra Station wallet. Show screenshots.
Cryptocurrencies and blockchain technology have come a long way since 2009. Not only is it a new alternative currency, it has seen many innovations such as fiat currencies and financial systems that we call DeFi. Among these innovations, the Anchor Protocol took its place.
Anchor Protocol is a savings protocol connected to the Terra blockchain, which has low volatility for the user and offers 20% yield farming. The Anchor protocol functions as a money market between lenders and borrowers. Lenders can earn interest by depositing their Stable coins on the platform. Borrowers, on the other hand, have the opportunity to buy stable coins by showing their assets as collateral.
Although there is a Yield Farming system based on the Anchor protocol, it is a project that has managed to stand out. Because the general problem of yield farming platforms is that there is a "permanent loss" and that they are open to attacks by malicious people. At this point, the Anchor protocol presents the Yield farming system to its users with stable coins and minimizes permanent loss thanks to the low volatility.
Now that we have the necessary basic information about the Anchor protocol, we can start to review the platform.
First, we will start by connecting our wallet to the platform. We go to the Anchor platform and press the “Connect Wallet” button in the upper right corner. Then we choose the "Terra Satation" option from the drop-down menu. Then, after giving the necessary approvals, our wallet is successfully connected to the platform.
After successfully connecting our wallet, the "Dashboard" section welcomes us. In this section, many options such as value, blocked amount, total borrowed amount, market charts welcome us.
Afterwards, the My Page section welcomes us. In this section, there are fields such as the total rewards we have received, the total value of our account, and the transaction history.
Then the “Earn” section welcomes us. In this section, we can deposit our ANC tokens on the platform to win rewards with good APY rates and it will directly show us the interest that will come from the amount we deposit.
Then the “Barrow” episode welcomes us. In this section, there are fields where we can see the amount of collateral, the amount borrowed and the net APR value.
Then the “Bond” section welcomes us. This is the section where we can exchange coins, print coins or burn them if we want.
Finally, the “Govern” section welcomes us. In this section we can see the details of ANC token and provide ANC for Staking.
The screenshots that are not cited in this section were taken by me via the Anchor platform.
3. Explain Mirror Protocol, connect Terra Station and explore Mirror Protocol application. Show screenshots.
Mirror Protocol is a DeFi project built on the Terra blockchain. It is a platform that offers its users the opportunity to trade mAssets (Mirror Assets). This protocol is a financial protocol and is not limited to cryptocurrencies. For example: mTSLA, mGoogl, mAAPL, etc. Now let's delve deeper into this platform and connect our wallet.
The first thing we need to do is go to Mirror Protocol and connect our wallet. When we visit the platform, there is a “Connect” button in the upper left corner and a screen where we can connect our wallet in the “My Page” section welcomes us. After clicking the Connect button, it gives the necessary approval and our wallet is easily connected.
Then, as you can see in the screenshot above, our “My Page” section becomes active. This section includes sections such as our total assets and total claimable rewards.
Then, when we move on to another section, the “Trade” section welcomes us. In this section, there are areas where we can buy and sell real assets, tokens whose real values are copied.
Then the “Barrow” episode welcomes us. As we can understand from its name, this section is the section where we can borrow assets.
Then the “Farm” section welcomes us. In this section, users can stake their position long and short tokens, thereby earning rewards with variable APR. These awards are paid to users as MIR.
Finally, the management department welcomes us. In this section, we can access the surveys on the platform, detail them and vote.
The screenshots without reference in this section were taken by me via the Mirror Protocol platform.
4. What is the Terra bridge? Explain, show screenshots.
Terra Bridge, as the name suggests, functions as a bridge between the Terra blockchain and other blockchains (BSC, ETH, etc.). In this way, it is a platform that allows cross-transfer of assets compatible with the Terra ecosystem. Generally, this transfer takes a fee of 0.1% or 1 USD while it takes place. Now let's see how to connect our wallet to the Terra Bridge.
First, we visit the bridge.terra platform. Then, on the screen that comes up, we press the “Connect Wallet” button. Then we choose our “Terra Station” wallet and after giving the necessary approval, we connect our wallet easily.
The screenshots without reference in this section were taken by me via the bridge.terra platform.
5.- Explain how it works and what Terra Stablecoin is.
Terra Stablecoin was developed to reduce the volatility of unstable and highly volatile cryptocurrencies and to offer a stable price to its users. The Terra ecosystem has two stablecoins. These are: Luna and UST. These two Stablecoins are used for features in the Terra ecosystem such as supplying in liquidity pools, supplying as collateral, staking, yield farming. Let's take a look at the instantaneous values of these two Stablecoins.
UST (Terra USD)
- Price = 1 USD
- Rank = 23
- Marketcap = $8,623,971,821
- Volume 24H = 221,828,572 USD.
LUNA
- Price = 63.61 USD
- Rank = 10
- Marketcap = $24,105,185,550
- Volume 24H = 2,807,626,069 USD.
6.- You have 1,500 USD and you want to convert it to UST. Explain in detail and get the price of the updated LUNA token.
As we can see in the previous section, current LUNA price = 63.61 USD, UST value = 1 USD
1500 USD = 1500 UST (1:1 Flat rate )
If we want to buy LUNA with 1500 UST later
We get 1500 UST / 63.61 = 23.58 LUNA coins.
7. Now you have that $1,500 and you want to profit since 1 UST = $1.07. Explain in detail and get the price of the updated LUNA token.
If we calculate according to the rate of 1 USD = 1.07 UST,
We get 1500 USD x 1.07 = 1605 UST. Considering the fixed ratio of 1:1 at this point, there is an excess of 105 UST. If we then get LUNA with 1605 UST.
1605/63.31 = We get 25.23 LUNA tokens. If we then exchange the LUNA tokens we have for USD to make a profit;
25.23*63.61 USD = 1604.88 USD so we get about 1605 USD.
However, at this point, as the purchase of UST will increase, the price begins to stabilize and balancing continues until 1 UST = 1 USD.
Conclusion
Our topic in this post was about the Terra ecosystem. We have included a lot of information about Terra and discussed its purpose, what it does and the different projects and platforms in the Terra ecosystem. It was a fun and educational lesson. For this reason, I would like to thank first professor @pelon53 and then everyone who read my post. I wish you all a healthy and peaceful day. See you later!
CC: @pelon53