Shiba Inu and LUNA neck to neck in market cap with Terra's new decentralized derivatives
- The Columbus 5 upgrade has attracted decentralized application projects to the Terra ecosystem, and new developments are lined up.
- Non-oracle-based perpetual options arrive on Terra, powered by Antimatter.
- Terra flagship projects Orion Money, Anchor Protocol, Mirror Protocol and Pylon Protocol fit together to create superior products for competing blockchain networks.
Terra's ecosystem upgrade has attracted Antimatter, a decentralized finance protocol. The decentralized application powers non-oracle-based perpetual options on Terra.
Decentralized derivatives and options products to boost ecosystem growth
Columbus 5 upgrade has hauled Terra's tokenomics and made it lucrative for dApps with Web3 infrastructure to launch in the ecosystem. The upgrade has restructured Terra in a few key ways that modify the economics on the supply side.
The changes simplify the design of Terra and create a tighter correlation between UST (stablecoin of the Terra ecosystem) and LUNA.
Earlier today, Terra announced that Antimatter, a DeFi protocol, will support non-oracle-based perpetual options contracts using LUNA.
1/ Pleased to announce that @antimatterdefi will be supporting non-oracle-based perpetual options using Terra assets on Columbus-5! https://t.co/khNL3Pj4ct
— Terra (UST) Powered by LUNA (@terra_money) October 12, 2021
This update is key to LUNA holders since there is a boost in the utility of the token. Users will buy and redeem call and put options without a set expiration and use Terra assets for risk-hedging purposes.
Options are considered one of the most effective tools to boost liquidity and promote the efficiency of Terra's stablecoin UST and LUNA.
Another exciting development in Terra is related to flagship projects Anchor Protocol, Orion Money, Mirror Protocol and Pylon Network. These four projects fit together to compete with superior products on other blockchain networks.
Anchor provides low-volatile yields on Terra stablecoin deposits, Orion is the liquidity aggregator, Mirror enables users to issue synthetic assets that track the price of real-world assets, and Pylon offers a suite of savings and payment products in DeFi.
Together these projects compete with DeFi apps on Ethereum, Solana and other blockchains.
The Columbus 5 upgrade and the arrival of projects that boost LUNA and UST's utility have brought Terra neck to neck with the Shiba Inu token. SHIB witnessed a massive rally over the past two weeks, driving the SHIB price over 120% higher within a week.
Terra is ranked twelfth in terms of market capitalization according to data aggregator platform CoinGecko. The gap between the market cap of the two assets is currently less than $100 million.
Natalie Luu, a partner at Lightspeed, commented on Terra's explosive growth. Luu tweeted
The 4th largest smart contract platform by TVL is @Terra_money and Terra's ecosystem has surged to 100+ projects
— Natalie Luu (@natluu) October 11, 2021
I'll be interviewing Do @stablekwon live on @TwitterSpaces Weds Oct 13th @ 6PM PT / 9PM ET. Tune in live for the latest Terra projects, NFTs, proposals & more!
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
