Terra

Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic. Due to limited liquidity, LUNA sell orders will not be accepted from 10:51 PM - 11:11 PM CT. Please submit your orders outside of this window.

On Thurs. May 25, Terraform Labs announced that the Terra community had approved the creation of a new blockchain, Luna 2.0. The creation of this new chain is a response to unprecedented volatility on the Luna 1.0 chain, which caused the price of the original LUNA and UST to collapse almost to zero. 

As part of the migration, the former asset LUNA will become Luna Classic, or LUNC. A portion of LUNA holders will be eligible to receive an airdrop of the new token (LUNA), per the terms outlined by Terraform Labs.

The new Terra blockchain will utilize the new LUNA, and will not include the UST stablecoin. 

On 9 May, after nearly 18 months of steadily holding its value against the US dollar, the so-called stablecoin TerraUSD (UST) became unpegged. The uncoupling triggered a cascade response that ultimately crashed UST and the Terra (LUNA).

TerraUSD (UST) is a stablecoin, which means it is a cryptocurrency pegged to a fiat currency. In this case, it is designed to be pegged to the US dollar. Stablecoins are intended to allow investors to hold crypto assets with less volatility, and trade a dollar equivalent without needing to cash out their positions. 

UST is considered an algorithmic stablecoin because instead of being backed by assets such as cash or cash equivalents, it is supported by on-chain code that facilitates a change in the supply and demand between UST and LUNA.

LUNA is the cryptocurrency that works in unison with UST in an effort to keep UST in 1:1 parity with the US dollar. One dollar of LUNA can always be converted at a 1:1 ratio to 1 UST. 

For example, if LUNA is trading at $10, then it can be redeemed for 10 UST, and 10 UST can be redeemed for 1 LUNA. If UST rises above its $1 peg to $1.01, then traders can swap 1 USD of LUNA for 1 UST. This trade burns 1 LUNA and mints 1 UST, which can then be sold for 1.01 USD. 

If UST rises to $1.02, then traders can sell for a 2 cent profit, and so on. 


In theory, increasing the supply of UST and lowering the supply of LUNA brings the price of UST back down until it reaches $1. Conversely, if UST drops below the $1 peg, then traders will be incentivized to buy 1 UST for 0.99 USD, which can then be swapped for 1 LUNA. 

This move burns UST and mints LUNA, sending UST higher towards the $1 peg.

UST lost its peg to the dollar starting on May 8th following large withdrawals of UST from Terra’s DeFi protocol Anchor. UST fell quickly, and struggled to regain its peg because the burning of UST and minting of LUNA couldn’t keep up. 

UST descended rapidly as the prolonged de-pegging led to uncertainty and a snowball effect of larger withdrawals. 


A significant share of circulating UST was locked on Anchor, a Terra-based lending and borrowing protocol that paid users 19.5% to stake UST. 

The LFG used up about $2.9 billion of its bitcoin reserves in an unsuccessful attempt to revive UST. 

WSJ 
Decrypt 
Bloomberg

*This content is for educational purposes and is not investment advice.

Investors who have staked their Luna tokens won't be able to sell for 21 days. The post As Luna holders watch the token slide, many won't be able to cash out for weeks appeared first on The Block.

As Luna holders watch the token slide, many won't be able to cash out for weeks

Breaking Twitter silence, Do Kwon of Terraform Labs has issued a new proposal in hopes of repegging the ecosystem's native stablecoin UST.

Terraform Labs CEO Do Kwon Outlines Terra's Path Forward for LUNA, UST Stablecoin

Since TerraUSD has not been a functional stablecoin since Monday, Maker's DAI is the de facto fourth largest stablecoin by market capitalization.

Maker Explodes 30% Overnight as Terra's UST Stablecoin Struggles

Terraform Labs founder Do Kwon said Wednesday the company is supporting a community proposal that could help TerraUSD (UST), a stablecoin pegged to the U.S. dollar, regain its peg.

Kwon said Terra endorses a community proposal that seeks to bring UST back to its intended $1 peg.

Do Kwon has urged holders of LUNA to “stay strong,” as the price moves ever closer to zero. Following the UST stablecoin losing parity with USD, prices have plunged, falling to a new low this morning. LUNA, UST Tumble Toward Zero As of writing, LUNA/USD is trading at $5.45, which is marginally higher than its […]

LUNA, UST Move Closer to Zero, as Do Kwon Asks Holders to ‘Stay Strong'

South Korea's major exchanges have issued warnings about trading of Luna following the crypto's current price downturn. The post Korean crypto exchanges issue warnings about trading Luna appeared first on The Block.

Korean crypto exchanges issue warnings about trading Luna

Terra is a Cosmos-based protocol that powers a suite of algorithmic stablecoins, which aim to maintain their pegs using a coin called LUNA.

What Is Terra? The Algorithmic Stablecoin Protocol Explained

Though Bitcoin appears to have stabilized near $30,000 a coin, Terra's stablecoin continues to crash. Now, it's trading at around $0.50.

UST Stablecoin Falls To $0.30 Overnight as Terra's Market Woes Continue

Cardano

Avalanche

Bitcoin

Ethereum

Solana

Bitcoin﻿ and cryptocurrency markets have fallen sharply after the controversial algorithmic stablecoin TerraUSD (UST) dropped further from its dollar peg...

Going ‘To Zero'—Panic Is Sweeping Crypto Markets, Hitting The Price Of Bitcoin, Ethereum, BNB, XRP, Cardano, Solana, Terra's Luna And Avalanche

The prices of Luna (LUNA) and its related stablecoin TerraUSD (UST) are in freefall, straining the entire project. The post Luna price collapses below $5 as UST slides further from dollar peg appeared first on The Block.

Luna price collapses below $5 as UST slides further from dollar peg

The embattled executive has been criticized after falling silent for almost 24 hours as the crisis engulfing his blockchain's two flagship cryptocurrencies worsened.

UST Plummets to $0.38 and LUNA Falls 82% in 24 Hours as Do Kwon Fails to Deliver 'Recovery Plan'

The price of LUNA continued to spiral downward.

Terra's LUNA Plummets by 32% in 1 Hour

The price of LUNA, the governance token of the Terra blockchain ecosystem, fell sharply on Tuesday. The post Terra blockchain token LUNA falls below $15 appeared first on The Block.

Terra blockchain token LUNA falls below $15

Tether's co-founder and DeFi execs weigh in on what the collapse of Terra's UST means for asset-backed stablecoins like USDT and USDC.

What Terra's Meltdown Means for Centralized Stablecoins Tether and USDC

The Major League Baseball team is in the basement. So is Terra.

Someone Forgot to Tell the Washington Nationals About Terra

The Luna Foundation Guard has held talks with large investors with the aim of raising over $1 billion to shore up UST amid weakening sentiment in the crypto market. The post Luna Foundation Guard seeks more than $1 billion to shore up UST stablecoin: sources appeared first on The Block.

Luna Foundation Guard seeks more than $1 billion to shore up UST stablecoin: sources

The jab comes as the Terra network's native cryptocurrencies are getting crushed in the market.

Cardano's Hoskinson Claps Back at Terra's Kwon Over 'Negative Correlation' Tweet

LUNA was down by over 50% in today's session as markets continued to react to UST losing its parity with USD. As such traders lost faith in the stablecoin founded by Do Kwon, which dropped to its lowest point since September. Whilst LUNA stole the headlines, XMR and AXS also saw recent losses extended. Terra […]

Biggest Movers: LUNA Loses 50% of Its Value, While XMR and AXS Declines Continue

The run on Terra's UST illustrates that stablecoins are a "rapidly growing product and there are rapidly growing risks," said Yellen.

Treasury's Yellen Highlights Terra Collapse in Call for Stablecoin Legislation

As Terra's LUNA token faces extreme sell pressure, Binance has temporarily halted withdrawals for the token as well as the stablecoin UST.

Binance Halts LUNA Withdrawals as Terra Token Plummets 50%

Binance suspended withdrawals for both LUNA and UST in the early hours of Tuesday "due to a high volume of pending transactions."

UST Stablecoin Implodes and Falls to $0.68, Bitcoin Reserves Liquidated, LUNA Crashes 50%

TerraUSD, the world's fourth-largest stablecoin, lost a third of its value on Tuesday, spooking cryptocurrency investors and partly contributing to bitcoin's tumble below $30,000 for the first time in 10 months.

Stablecoin Terra's broken dollar peg hits wider crypto markets

Crypto exchange Binance has suspended withdrawals of LUNA and UST tokens with the Terra-based stablecoin struggles to recover its peg to the US dollar. The post Binance suspends LUNA and UST withdrawals amid market turbulence appeared first on The Block.

Binance suspends LUNA and UST withdrawals amid market turbulence

As TerraUSD (UST) plummets in value, the Luna Foundation Guard says it's preparing $1.5 billion in Bitcoin and UST to address market concerns about the stablecoin. UST, a stablecoin designed to be pegged to the US dollar (USD), is trading for $0.75 at time of writing, down more than 24% in the past day. Though […] The post Luna Foundation Guard Prepares $1,500,000,000 in Bitcoin (BTC) and TerraUSD (UST) To Protect Stablecoin Peg appeared first on The Daily Hodl.

Luna Foundation Guard Prepares $1,500,000,000 in Bitcoin (BTC) and TerraUSD (UST) To Protect Stablecoin Peg

Terra's UST stablecoin has continued to slip below its dollar peg—and throwing money at the problem has yet to work.

News for Terra Crypto (LUNA)