Cryptocurrencies

How to use the Challenge on the Terra blockchain (Token Luna and UST)

Did you like the tutorial on Maiar Exchange ? This tutorial will guide you to discover the ecosystem of the blockchain Terra and his token the Luna.

The particularity of this blockchain is that the transaction fees can be paid in Luna or in UST (which is a stablecoin algorithmic)

Thanks to this guide, you will be able to take your first steps on the Terra blockchain and its decentralized finance platforms

What is the Terra blockchain?

This is a rather recent blockchain that was created by the South Korean company Terraform Labs. Its founder and CEO is Do Kwon

Here is an overview of the ecosystem

ecosystem terra
source Terra’s Twitter account

The two important tokens are the LUNA and the UST , indeed in order to guarantee a stable price on the UST ($ 1) there is a mechanism to know.

When you create UST of LUNA is burned, the stable UST coin is therefore assimilated to LUNA.

It is therefore an Algorithmic Stable Coin that allows you to generate nice returns in Stable Coin.

Step 1 – Create a Wallet

The first step is to download thechrome extension Terra Station. The principle is the same as MetaMask except that here we manage a single network that of Terra.

The extension is available at this address: https://chrome.google.com/webstore/detail/terra-station/aiifbnbfobpmeekipheeijimdpnlpgpp

The extension is at the top right and looks like this: terra station logo

If you have a Ledger use it as a Hardware Wallet if you don’t have one I recommend you buy one for secure your cryptocurrencies

The second possibility is to create a new portfolio.

terra station wallet
the application is available at the top right

Write down your passphrase (that only you should know) and enter a password.

cle wallet terra

You are ready for the next step, your portfolio is created.

Step 2 – Have Luna or UST

To pay for your transactions on the different platforms, you must have USTs or LUNAs in your possession.

There are several solutions including using a bridge or Exchanges

The bridge

The official bridge is available here https://bridge.terra.money/ it allows you to transfer LUNA / UST from Binance Smart Chain network to Terra for example.

UST is available on decentralized exchange Pancakeswap ! You can thus convert tokens in UST to use the bridge!

terra bridge
the bridge takes different Blockchain

Connect your wallet using Metamask, enter the value in Luna or UST then choose your Terra Station wallet as the destination

example bridge terra

Exchanges

A second solution is to convert your cryptocurrencies from Exchanges like Kucoin Where Crypto.com (Binance does not take UST to date, LUNA is available). Once converted to UST or LUNA add the TERRA STATION address for withdrawals.

Pay attention to the fees and minimums needed for withdrawals so you don’t get stuck.

ust Kucoin
the withdrawal fees are 4 ust on Kucoin

With your USTs or LUNAs in the wallet, we will be able to make them work thanks to the different platforms of the Terra ecosystem.

Step 3 – The best Terra platforms

Anchor Bank

The strongest platform is Anchor. It wants to be THE “bank” of the TERRA ecosystem. Its governance token is the ANC.

The official link is as follows: https://app.anchorprotocol.com/

Anchor offers you to store your UST in a safe with yields around 20%. This is a very nice rate for a stable coin, especially since the platform is solid even if No risk does not exist. To place your UST just click on “EARN”.

dashboard anchor

Then click on the “Deposit” button, the USTs stored will benefit from a yield of 20% per year, they are thus transformed into aUST. When you make a withdrawal your aUST will automatically be converted into UST.

earn ust
by clicking on “deposit” you make your UST work

The “Borrow” module makes it possible to deposit bLuna in collateral in order to borrow UST. The current rates not being interesting I will not detail this part. However it allows you to generate ANC token in case of deposit and loan. The interest is to keep your bLuna while using another cryptocurrency.

TerraSwap the platform to exchange and farm cryptocurrencies

To easily convert your cryptocurrency on the Terra blockchain, I recommend the DEX TerraSwap.

terraswap dashboard
Fees can be paid in Luna, UST but also other tokens.

Using Provide you can associate token pairs. By keeping them they will be able to generate a return for you.

Spectrum Protocol Yield Optimizer

The Spectrum Protocol platform is a Yield Optimizer. It allows you to automatically reinvest your rewards. It’s quite practical in the long run.

You can take a look at this link: https://terra.spec.finance/vaults

spectrum dashboard
the main page of Spectrum

Mirror Protocol for using Synthetic assets

The platform is accessible from this link: https://mirrorprotocol.app/#/trade

Mirror protocol allows you to use synthetic assets (for example Amazon, Apple, Tesla or Netflix stocks). You can thus set up a farming strategy with your cryptocurrency and shares of large American companies.

It is also possible to use your aUST which is stored on Anchor. There are so-called “short farming” and “long farming” strategies. It’s quite technical but you will find videos on Youtube (search for CryptoFarmeur in particular). Below you will find his video on his Delta-Neutral strategy.

Other Platforms

The Terra ecosystem will continue to develop. Cryptocurrency and especially decentralized finance is risky.

There are other platforms that have not been mentioned (Pylon / Nexus) they will be the focus in future articles.

Do your own research and if you find an interesting platform please post it in the comments of the article.

Finally for those who want to minimize the risks know that Feel-Mining offers to store your LUNAs with a 6% yield. Be careful if you want to withdraw them LUNA it is blocked for 21 days (these are the rules imposed by the Blockchain).

feel mining luna

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