Expand the Protocol to other Terra Stablecoins

With Anchor Protocol being the backbone of the Terra blockchain and one responsible for its growth, it is important that the other Terra stablecoins are introduced in the defi, starting with Anchor.

Since Terra is not just UST, it is essential that the other national currencies are implemented, (I propose) starting with the top 4 by market-cap (TerraSDT, TerraKRW, TerraEUR). This, in addition to pursuing the main objective of Anchor (Better Savings for all), will significantly help the growth of the ecosystem.

However, nowadays (2/3/22), the protocol is not sustainable and that is why if new stablecoins were to be implemented it would be better starting from Anchor V2.

Also, as far as the technical / practical side is concerned, I am not an expert, but I believe that the best solution is to create copies of the current model, replacing UST with the others.
So for example you create a copy of Anchor (UST) by replacing UST with TerraEUR. This copy will have its own collateral, its own incentives, its own Yield Reserve, etc.

I think this could be the start of a constructive discussion.

I hope it is explained clearly, if I have been unclear I ask you if you could tell me. Being a non native English speaker I used Google Translate, possible grammar errors or misspelled words can come from there.

3 Likes

Yep , our planet terra is big

13 Likes

Hello,

I feel that figuring out how to do this is key for terra, and Anchor has been a driver for UST adoption.

Having stable coins for each fiat currency so that people can use terra in their day to day without worrying about USD fx or centralisation is key to terra’s mission. It’s a key differentiator vs other stablecoins. At present, I think many outside the ecosystem probably think that terra is just UST and LUNA.

From a developer perspective, as we build more protocols in the terra ecosystem, we need to build these in a multi stable coin way. At the moment everything is UST focused, from the front end user perspective at least. That means there is a risk that dapps are all built for UST only, and their code may not generalise well to support the others. The longer this goes on, the more likely integration will be surface level only, with the user or protocol needing to take on USD fx risk, to the detriment of the terra mission.

The sooner we give utility to another terra stable coin, the sooner we can get deep liquidity for it that will incentivise the development of other use cases.

I think starting with KRT, given the success of Chai, and the origins of Terra, would be great. Perhaps MNT second? We can see from our luna staking rewards that these are the big two in active use besides UST, as they are being used to pay transaction fees.

I agree that for Anchor to avoid FX risk, the different terra stablecoins need to be their own verticals, so their own borrow supporting their own earn. Although global banks do aggregate their balance sheet so maybe we should too. But its a lot simpler to keep it separate, and focus on local use cases and partnerships to drive earn and borrow adoption, where Anchor is the back end for locally marketed dApps that support both borrow and earn for users.

This turns Anchor into a bank for the world, but we need to be for saving and borrow. So I agree it is best to consider after Anchor borrow v2, and after we are happy with the UST earn / borrow model and the role of ANC, so that we have a stable base for expanding the set of Anchor supported terra stablecoins.

Thank you.

1 Like

I completely agree with you, it is right that first the protocol is stabilized with the entry of the V2 and that the new governance mechanisms of the ANC token come into play.

As for the second stablecoin to be implemented, I agree with KRT, however the market demand should also be assessed. From what I see from other dexes, swaps in EUR are very popular and being a currency similar to the dollar, I think it is easier to launch on the market. However, the success of Chai in Korea is also true and the implementation of Anchor for Chai users could act as a link for the implementation of the blockchain in the real economy.

3 Likes

Anc was the boostrap
i use terra to send money overseas it is more simple use case, than cbdc, it ad more routes before being usable for merchants ,
i know kado but everything is usa market focus, i would like to use, but im in bali.
IMO just a agrement co-op with regs, some are ok , other build walls and or close the doors due geopolitic import export trades.
IMO luna terra is more a bit agnostic .
But agree with all of u
@K-pop-fan @enea

3 Likes