analysis terra defi dec. binance smart

Decentralized payments network Terra is now the second-largest blockchain for decentralized finance (DeFi) protocols in terms of total value locked (TVL). Terra, which is behind Ethereum, crossed Binance Smart Chain (BSC) this week.

On Terra, 13 projects lock over $18.2 billion in value, data from analytics tool DeFiLlama show. That’s over $1.4 billion per protocol on average compared to an average of $73 million per protocol on BSC, which has $16.5 billion locked on 225 protocols.

The figures are a near 42,000% increase compared to December 2020, when DeFi projects on Terra held a relatively smaller $42 million in value.

Ethereum retains the DeFi crown with $152 billion in value locked on 361 protocols.


TWX farms while also earning a trading fee for providing liquidity. LP tokens can be taken out at any time, but they must be staked in order to gain TWX.

What makes Twindex stand out in the industry

Twindex makes itself different in the industry by offering a variety of ways to profit from Twindex, even when the cryptocurrency market is in decline.

Better Dividend

Easy-to-follow yield farming can help you make more than 20% more money than standard trading dividends while also allowing you to benefit from capital gains.

Trade with Various Foreign Assets

Twindex allows users to trade a wide range of stock tokens from any country, including the United States, China, and Vietnam, from anywhere in the world.

No KYC, 24/7 Trading

There is no requirement for user authentication because of the Blockchain and DeFi concepts.

Analysis terra defi dec. binance smart chain

As a result, tokens are backed in part by the KUSD stablecoin and in part by the utility token TWX. In addition to the capital gains generally generated by purchasing and selling assets, Twindex synthetic assets (tAssets) can be utilized in farming pools to produce dividend-like returns.

They show many techniques to keep the tAssets pricing tied to the real-world price.

Twindex

Twindex is a decentralized exchange on the Binance Smart Chain that allows users to create and trade Synthetic Assets that are pegged to real-world pricing. Chainlink, the world’s leading decentralized Oracle network that feeds real-world data to blockchains, powers Twindex.

The Dopple DeFi Ecosystem includes Twindex. ‌‌

Stablecoin Swap

It should be as simple as swapping 1–1 between stablecoins and assets that are tied to the same value, such as 1 USD.

Analysis terra defi dec. binance smart-

All liquidity, as on other DEXs, is contributed by the users themselves, in return for token rewards based on the amount of liquidity they provide for each trading pair.

Metaverse and gaming applications have made their mark on Terra as well. The recently launched StarTerra, which calls itself a gamified launchpad that supports NFT integration, locks up $21 million in value, while LoTerra, a decentralized lottery, holds over $311,000 in value.

The increase in TVL on Terra coincided with the rising prices of its LUNA tokens.
Prices are up 54% compared to the past week, trading at all-time highs of $83 on Tuesday morning, as per data from CoinGecko.

LUNA was one of the strongest-performing cryptocurrencies in the past month even as the broader market tumbled.

Analysis terra defi dec. binance smart-03

In a rally started at the end of November, the LUNA printed a first all-time high (ATH) around $ 78, before blowing slightly.

After a rebound to $ 52, investors took advantage of the announcement listing of Terra’s UST stablecoin on Binance to push LUNA to that new $ 100 ATH. A psychological resistance which seems to have slowed down the progress of the token, which is declining by a few dollars at the time of this writing.

Evolution of the LUNA price – Source: TradingView

This represents an increase more than 163% of its price within a month.
This is not the only witness to the good health of the ecosystem, as Terra’s UST recently passed the DAI to become the 4th capitalization of stablecoins, to the tune of $ 9 billion.

Analysis terra defi dec. binance smart-06

Still very little used at the start of the year, the ecosystem quickly spread until it reached 20% of the total value blocked on-chain. This represented $ 31 billionlocked, against only 140 million on January 1.

Moreover, the protocol PancakeSwap has even surpassed Uniswap at times, its competitor on Ethereum, in terms of daily trading volumes.
As for the Binance token, the BNB, it went from $ 43 to over $ 680 in a matter of weeks.

👉 Don’t Miss – Introduction of BNB Token Auto-Burn Mechanism on Binance Smart Chain

Terra Ecosystem Outperforms Binance Smart Chain

As we expressed above, the DeFi landscape is changing at top speed.

DeFi projects rely on smart contracts instead of middlemen for financial services such as lending, trading, and borrowing.

DeFi heats up on Terra

Leading the TVL charts on Terra is Anchor, a savings protocol offering low-volatile yields on Terra stablecoin deposits. Anchor locks over $7.7 billion in value and accounts for 42% of Terra’s TVL.
Anchor users accrue rewards through a diversified stream of staked rewards from major proof-of-stake blockchains.

Staked assets liquidity provider Lido is next on the list with over $5.4 billion in TVL. In third place is decentralized exchange (DEX) Terraswap, which has seen its TVL increase over 95% in the past week.
Terraswap matches peer-to-peer trades between users using Terra’s smart contracts.

The Oracle price at the time of minting will be worth the value of the assets that must be minted. TWX will be removed from the system, while the collateralized KUSD will be employed to produce value.

The process of obtaining KUSD and TWX by delivering tAssets to burn is known as redemption.

The KUSD/TWX ratio varies depending on the Collateral Ratio, but the total worth is determined by the Oracle price.

As a result, you could say that minting tAssets requires the current real-world price of the asset, and redeeming tAssets returns the current real-world price. TWX will be re-minted from the system as a result of this operation.

Trading between various sorts of assets can be costly and inefficient, resulting in capital losses due to significant slippage and transaction fees.

Dopple uses a StableSwap algorithm that is specifically built for optimum switching between stablecoins, with minimum slippage and low transaction costs, to allow users to effectively swap stablecoins and pegged assets on the Binance Smart Chain. Dopple Finance charges a 0.045 % trading fee (vs. 0.25 % on PancakeSwap), which is divided down as follows:

0.018 % – Redistributed to liquidity providers.

0.027 % – Sent to the Dopple treasury. Dopple Finance currently supports the following stablecoins: BUSD, USDT, DAI, USDC, UST, TUSD, USDN, DOLLY, KUSD.

Minting and Redemption

Minting refers to the process of establishing new tAssets by supplying a portion of KUSD and TWX in accordance with the Collateral Ratio.

Key Takeaways

  • The network has surpassed $18 billion worth of assets locked in DeFi protocols, as the Terra ‘s LUNA soars to new all-time highs.
  • Terra has become the second-largest DeFi network, overtaking Binance Smart Chain.
  • The network’s native LUNA token has also reached a new all-time high of $84.92.
  • LUNA’s price appreciation, together with new DeFi protocols on Terra, has helped the network reach the number two spot.
  • Terra has overtaken Binance Smart Chain in total value locked, becoming the second-largest DeFi network behind Ethereum.

Terra Takes Second Rank

DeFi on Terra is booming.

And now, Terra has simply become the second-largest DeFi network, flipping Binance Smart Chain (BSC) in the process. Recall, BSC has a total of 225 products in its DeFi ecosystem with a TVL of $16.7 billion.

But even that TVL has been on a decline all through the month.

Meanwhile, the consistent price increase of LUNA over the past few days might not be unrelated to investors buying spot LUNA to lock up in the Astroport lockdrop. This assumption was put forward as part of a Monday publication of a research note by Delphi Digital analytics firm.

Astroport is a new decentralized exchange and had gone live on December 14, airdropping ASTRO tokens to users who lock up their liquidity in the protocol.

There seems to be an obvious attraction as investors are looking to make free money from the lockdrop.

Twindex uses a fractional-algorithmic algorithm to make trading of synthetic assets pegged to real-world prices as simple as possible.

Dopple DeFi Ecosystem

Dopple Finance is a Binance Smart Chain Stablecoin DeFi ecosystem. Their core product is a decentralized stablecoin exchange that allows users to exchange stablecoins and pegged assets at the highest possible pricing.

Twindex is a decentralized exchange on the Binance Smart Chain that allows users to create and trade Synthetic Assets that are pegged to real-world pricing.

KUSD is the ecosystem’s native stablecoin using the “Fractional-Algorithmic” algorithm that is deployed on both Dopple Finance and Twindex.

Their new synthetic assets on Twindex will be the first to apply a fractional-algorithmic algorithm (FAA) approach.

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