Rise of the Terra ecosystem
Yield farming took the crypto world by storm in mid-2020, with the birth of DeFi protocols like Compound, Synthetix, Yearn Finance, and more, leading to a “DeFi Summer 2020” euphoria. During the reporting period, yielding farms offered a stunning Annual Percentage Yield (APY) every day. However, yields fell sharply as more capital poured into these growing protocols.
Most yield farms were initially focused on Ethereum and have then expanded to, or built natively on, other Ethereum Virtual Machine (EVM) chains, led by Binance Smart Chain (BSC) and Polygon. However, until now there have only been a few farms on other Layer 1 blockchains, but that is about to change.
Introducing Terra, a decentralized payment network that aims to rebuild the traditional payment system on top of the blockchain. Founded in 2018 by Terraform Labs, the Terra Blockchain is part of the Cosmos ecosystem and has since made its way into traditional payments and crypto. Since its inception, the network has launched three native stablecoins:
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TerraKRW (KRT) (Korean Won on Terra)
- TerraMNT (Mongolian Tugrög on Terra)
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TerraUST (UST) (USD on Terra).
Among the most popular products is Chai, a mobile payment app in South Korea. Terra has also partnered with the Mongolian government to accept TerraMNT for utility payment. There are currently over 2.7 million accounts on the Terra blockchain, and more are being added every day.
Source: CoinGecko Q1 2021 report
Recently, the Terra ecosystem has grown rapidly as more projects build upon it, and as of August 1, 2021, it exceeded $3.7 billion in total value (TVL). However, more projects mean more farming opportunities. But before we dive into yield farming on Terra, let’s set up the Terra Station, the entry point to using Terra products.
This article introduces you to two parts. The first part is to set up an account on Terra. In the later part you will learn where to farm on Terra including Terra Station, Mirror, Anchor and Pylon.
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