Router Protocol Receives Funds From Terra Blockchain

Router Protocol recently announced that Terra has awarded the firm a grant to develop Router’s project of cross-chain liquidity.

Terra is a blockchain designed for specialized applications based on the Cosmos SDK and Tendermint consensus. Terra’s protocol uses a set of algorithmic, fiat-pegged stablecoins, such as Anchor, CHAI, along with Mirror Protocol to support a healthy DeFi environment. LUNA, Terra’s staking, and holding absorb the volatility in the short-term of Terra’s stablecoin due to the demand for Terra’s DeFi platform for Terra’s stablecoin (e.g., UST) — accumulating value to LUNA via seigniorage.

The Terra protocol works as an open-source, on-chain supply based on the LUNA elastic supply model. This model from Terra is the network’s staking and assets by the government, absorbing the network’s stablecoin pegs’ short-term volatility in exchange for long-term mining rewards for users.

The outcome is a scalable, censorship-resistant payment method for multi-chain DeFi, fueling the demand for the Terra ecosystem apps and absorbing about $7 billion in TVL – the fourth most among smart contract chains for the public.

Terra will soon be supported by Router Protocol’s main product, XCLP- the Cross-Chain Liquidity Standard. It will enable users to move liquidity from Ethereum, BSC, Avalanche, and Polygon to and from the Terra chain, which is rapidly expanding.

Users experience significant difficulty in moving liquidity among chains in the current DeFi environment. This may be ascribed partly to bridging infrastructure that lacks appropriate testing or liquidity to handle most deals. Router Protocol is developing infrastructure that will allow safe, cross-blockchain messaging. Liquidity is relatively inefficient as there are many new blockchain networks in the market.

The Dfyn Network, a project by Router Protocol, connected with Terra this summer and is quite positive in terms of liquidity for Terra’s stablecoin UST on Polygon.

About Terra Money

Terra is a consumer-based blockchain with an algorithmic stablecoin suite integrated into the on-chain layer, based on the Cosmos SDK and Tendermint consensus. Terra’s goal is to use stablecoin as a bridge to public adoption of crypto apps, having fiat-pegged stablecoin preserving their peg parity via an algorithmic approach that underpins a vibrant ecosystem of DeFi and present applications. You can check out our other pages to know more about the live prices and Terra price prediction by experts.

About Router Protocol

Router Protocol is developing a set of multi-chain liquidity infrastructure primitives that will bridge existing and new 2 levels of blockchain solutions.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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