Terra (LUNA) Blockchain - Crypto Academy / S5W4 - Homework post for pelon53.
This is a very informative lecture about understanding and working of Terra Luna Blockchain technology and its native token working. I have learned a lot of things about this unique project. Now, I try to answer all the questions, I hope, it will help you to understand this project in another way.
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 a decentralized application that is working as the wallet of Terra Blockchain. Terra Station has it own web and mobile application existence. We can perform several operations on the Terra Station application.
In Terra Station, we are able to play with Luna token and another token that are available on the application by downloading and installing the application. After installing the application, we should create a wallet on Terra station, then we are able to interact with different functions on this platform.
Tera Station application holds the present and past history about the Luna token the price of Luna, supply, and how much amount of Luna have been staked in. Now we will explore the Terra Station and know the features of Terra Station with visuals.
Dashboard:
This is the home page of Terra station. On this page, we can the information on Luna's price, tax rate, how much amount of Luna that are issues so far, community pool and staking ration and how much amount of Luna staked here.
In the above figure, you can see that the transaction volume in native token UST, and we can get the information about the staking return on the behalf staking of UST. This is the information about the last 24 hours. We can get all the details by selecting the time period.
Wallet:
This is the second tab in Terra station. In this tab, all the information about the token that we have in our Terra wallet is displayed here. We can send, deposit and withdraw our token for our wallet at any time.
Staking:
It is the third tab. In this, we can see that the voting power of validators. We can check our staked token in the Terra station and withdraw the reward earned on the behalf of staking.
Swap Coin:
We can easily swap our token with another token in this option. Select the coin, that you want to swap, and at the right select the coin swap with and click on the Next button.
Governance:
This is the tap we can make decisions on the platform. Our voting power is depending on how much Luna token we have. Accordingly, we can vote and make decisions.
Wallet Connection with Terra Stations.
First, we need to download and install the wallet extension and mobile application then we proceed to the connection process. I like to add an extension to my browser. For the creation of the wallet, you need to do the following process.
- Open the application and click on connect, then click on the Terra Station Web Extension. Next, you need to click on the New wallet button at the Terra extension.
- Enter the Name of the Wallet. Next set your password twice.
- For security measures safe your phrases by copying and pasting a safe place.
- Check the terms and conditions at the bottom and at the end Click on the Next button.
- Verify by writing the exact phrase and Create a Wallet Button.
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In this way, our wallet is created.
- For connection, go to the Terra station web app and click the Connect button.
- Then, go to wallet extension and allow the access.
In this way, we can connect our wallet with Terra station.
Explain Anchor Protocol, explore the application and connect the Terra Station wallet. Show screenshots.
If we talk about decentralized applications, they are getting advanced day by day. More functions and use-cases are added to the decentralized applications. One of the major use-cases is yield farming.
In this function, we can supply our stable coin like UST to the liquidity pool and earn interest on the behalf of supply token. Interest is based on how many tokens you supply to the liquidity pool and how much return is set by a particular pool.
The Anchor protocol is also an application that provides the option of yield farming of stable coins. In other protocols, we provide liquidity to the pool by supplying unstable coins and earning profit.
But the case of Anchor protocol, we can earn rewards by supplying the stable coin. This is a short introduction to the Anchor protocol. Now we will explore anchor protocol. There are several features that anchor protocol offers. We will see and understand these features.
Dashboard:
In this tab, we can get information that how much value UST is staked in it. Here we can know that what is the current value ANC that is an Anchor protocol token and get the other information like circulating supply, market cap, 72 hours buyback, total UST buyback value, total borrowed UST, Total deposit UST, and total collaTeral value of UST in the dashboard.
My Page:
On this page, all UST we have that we have in our wallet, borrowed, holding, In a pool, Farming, and govern. We can send our UST to another platform. We can claim all reward that is getting in the form of ANC token by staking.
Earn:
In all UST that we deposit on in this tab. Here we can see that the interest that can get on providing liquidity is 19.5%. We can deposit and withdraw our UST from here.
Borrow:
We can borrow assets from here. We can borrow assets after depositing a certain amount of assets in it as collateral. The APY on Borrow is 0.96%.
Connection Anchor Protocol with Terra Station wallet.
Open the Anchor Protocol web application
Click on the Connect Wallet.
Then click on the Tera Station button.
Wallet ConnectionScreenshot from Anchor Protocol
Terra Extension triggered; you need to click on the Allow button.
Here you can see that our wallet is connected successfully.
Explain Mirror Protocol, connect Terra Station and explore the Mirror Protocol application. Show screenshots.
Mirror Protocol is another use-case of Terra blockchain. In this use case, Terra blockchain enables traders to trade the mirrored assets. So, we need to understand that what are the mirrored assets. Mirrors tokens are those tokens that are not public for trading due to certain reasons like government policies, lack of functional requirements, and any other technical reasons.
This is why these tokens are not available for the general public due to these reasons. But mirror protocol enables the traders to trade those mirror assets on the mirror protocol. Now we will explore the mirror protocol application and understand the functions.
My Page:
On this page, all UST we have that we have in our wallet. Total Claimable reward is also shown on my page.
Trade:
In this, we can buy any mirror asset with UST. Select any mirror asset and then entry the amount. Here we can also sell our mirror asset.
Borrow:
We can borrow assets from here. We can borrow assets after depositing a certain amount of assets in it as collateral in the form of UST. We can set the collaTeral ratio accordingly. Select the asset that you want to borrow and then click on the Borrow button.
Farm:
In this function, traders can stake their mirror token here and get the reward in the form of MIR that is the native token of Mirror protocol. We can select the mirror token according to our choice. The Long Farm of MIR return is about 17.99% at the current time. We can farm short and long.
Select the mirror asset that you want to farm, then set the collateral ratio, and then confirm return in UST. At the end click on the Farm button. In this way, we can farm our mirror token here.
Connection Anchor Protocol with Terra Station wallet.
Open the Mirrored Protocol web application
Click on the Connect at the top right corner.
Then click on the Tera Station Extension button.
Terra Extension triggered; you need to click on the Allow button.
Here you can see that, our wallet is connected successfully.
What is the Terra bridge? Explain, show screenshots.
First, we understand the meaning of bridge. Bridge connects one end to the second end. Then we can easily communicate with another end. We take an example river bridge and canal bridge. In the same way, Terra blockchain introduced the Terra bridge.
In Terra bridge, we can easily exchange our token with other coins like Ethereum, BSC, and Harmony. We can transfer and exchange our Terra token with these coins for fewer network fees. For exchanging the token with others, you need to connect your wallet.
- Go to Tera Bridge
- Click on the Connect at the top right corner.
- Then click on the Tera Station Extension button.
- Terra Extension triggered; you need to click on Allow button.
Here you can see that our wallet is connected successfully.
Explain how it works and what the Terra Stable coin are.
Stable coins are coins whose prices are stable and do not fluctuate so much like other unstable coins. These coins are developed by blockchains for providing the liquidity to pool. Terra Blockchain has two stable coins. One is Luna and the second is UST. Terra blockchain stable the price of these coins by controlling the demand and supply.
Tera Blockchain generates the stable token UST by burning the Luna tokens. The fees of burning are going to the Tera. Terra token is linked with UST. When the price of UST is increased from $1 to $50. Then the stakeholder of Terra burned the Terra token, and in return they get UST. In this way, the supply of UST is increased and stakeholders get profit from burning.
On contrary, when the price of UST is decreased from $1 to $0.50 then the stakeholder burned the UST token, in return, they get the Terra token. In this way, they profit from burning. By burning the UST, the supply decreased and the value of UST increased.
You have 1,500 USD and you want to transform it into UST. Explain in detail and take the price of the updated LUNA token.
We want to transform 1500 USD to UST. We keep in mind the 1 USD = 1 UST according to the peg ratio (1:1). So,
1500 USD = 1500 UST
Convert them into Luna. We get the price of Luna from coinmarketcap.com. All the information about Luna token is mentioned in the figure like price, circulating supply, Marketcap, and Volume of Luna. You can see this in the figure.
Luna Price = $62.35
Total UST is Divided by the current price of Luna = UST/LUNA
1500/62.35
24.06 Moon
Now you have that 1,500 USD and you want to make a profit, since 1 UST = 1.07 USD. Explain in detail and take the price of the updated LUNA token.
First, the thing that we do for making a profit is to convert our USD into Luna tokens. Then we burn those Luna tokens for getting the UST. Then as we know that the 1 USD = 1UST in peg ratio (1:1).
Luna current Price = $62.35
UST = 1.07
Convert USD into UST.
1500 x 1.07 = 1605
Luna We got from UST
1605/62.35 = 25.74
By Selling the 25.74 Luna I save the profit of 105 USD.
Tera blockchain is a unique project among other projects. There are many use-cases that Terra offers. It has anchor protocol, mirror protocol, and Terra bridge. It has its own native token Luna and UST. We can lend our assets to Terra blockchain to earn APY.
In the mirror protocol, we can buy those assets that are not available to the general public. It has a unique token value controlling system. The supply of this token is low that is the 4 to 6 percent of the total Terra token, due to low supply the value will increase rapidly.