Hey everyone this is KashRon here from the Intellabridge team, in exclusive partnership with CryptoDaily™. On this week’s episode of Terra Weekly. First, let’s look at the price of Luna, which is down around 18% this week to around the $41 mark today. In the crypto world, that’s a pretty bad week. However, two weeks ago the price was around $43, so that just shows how volatile the market is in general and not to focus too much on the short term price swings. Luna’s up by around 1% over the past month making for a pretty entertaining roller coast ride over not a significant price impact.
Over here, you’ll see there has been around $94,000 in tax rewards collected this week, which is up from the last time I reported this number. This makes sense as there was high volume of activity, that brings revenue to terra regardless of whether it’s buy orders or sell orders. In this case with the market correction there was a lot of selling activity, and transaction fees feeding into Luna. Monitoring weekly transactions is important as when transactions occur on the Terra network, there are transaction fees that flow into the Luna token, giving it steady cash flow and intrinsic value. You’ll also see the staking ratio at 9.16%, which is incredibly high compared to other cryptocurrencies. This is due to all the airdrops that are going to the stakers from third party companies building on top of terra.
Next you’ll see Anchor’s deposit and borrow ratio here. What’s interesting is that this week, for the first time ever the borrow rate actually became negative. This is notable as the net interest rate is a reflection on how healthy the system is. The more stress on borrowing behavior, the more the Anchor protocol needs to give rewards to incentivize borrowing behavior. So seeing a net positive interest rate is a good thing for Anchor as it means the system is healthy.
Now for news...there was a Proposal this week in the Terra community to shorten the voting period from 14 days to 7 days and reduce the minimum LUNA deposit from 512 to 50 LUNA. This proposal has passed. What this means is that changes in the Terra ecosystem should be happening much faster and these governance proposals should be much more accessible to a wider group of people. These changes are important as Terra is a decentralized ecosystem with the largest decentralized stablecoin in the world today. That means that governance should be as democratized as possible to ensure that any changes in the Terra ecosystem are made with the express permission of the community.
Next up...this is a fun one. Apparently Terrafirma is selling a house for US. This is pretty huge news as it would mark the first time an entire house was sold for an algorithmic stablecoin. THis is a key hurdle for the Terra ecosystem, whether its stablecoin will have value in the real world. Being able to purchase an entire home for UST, given its regulations, how it’s such an integral purchase to most families, and the amount of funds required to actually purchase a house, this would make for a landmark moment. There’s no date yet for this sale or price tag, so that will be something to keep an eye out for. It’ll also be important to follow how this legally works out, but it’s very promising to see if they can pull this off.
Next up...this is a fun one, a video game company called GAMEVIL has entered into a strategic partnership with Terra. While Gamevil will be using its own token, C2X, in its platform, being hosted on the Terra network still presents a wide variety of benefits for both parties. For example, I can personally envision that the transaction fees from this platform will still feed into the Terra ecosystem in the form of cashflow to validators. It’s great to see Terra ecosystem adoption here as the broader NFT metaverse expands out. This is an important trend to follow in the coming months. ‘
Next up, MIM-UST is now live on Abracadabra. Even those in the Terra ecosystem might not be aware, but MIM is a pretty large stablecoin in of itself. It’s made by Daniele Sesta, who you might know as the creator of defi protocols Spell, Ice, and now most notably Wonderland, which has an insane 80,000% APY right now on the Avalanche network. While MIM and UST might seem competitive as they are both stablecoins, the ability to interop and have functionality brings value to users of both ecosystems, which strengthens the crypto community overall.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.