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Beginner’s Guide: How to Use Terra

Beginner's Guide: How to Use Terra
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  • While still relatively young, Terra’s DeFi ecosystem stands out as one of the most innovative decentralized applications in cryptography.
  • Terra Station is the wallet for users who want to share and interact with the network.
  • Staking LUNA currently yields more than 7% annually, and the tethered asset, bLUNA, can be used as collateral for crop planting via projects like Anchor.

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Terra is an intelligent contract blockchain protocol and a payments-focused financial system powered by algorithmically governed, scalable, and decentralized stablecoins. Terra’s ecosystem offers an innovative suite of DeFi products, which makes the protocol worth exploring.

about terra

It was launched in January 2018, Tera It is a scalable and high-throughput blockchain protocol built on the Cosmos SDK. It uses the Tendermint Commissioner-Proof-of-Stake (DPoS) consensus mechanism to ensure adequate decentralization while offering low-cost transactions with fast settlement speeds. However, what distinguishes Terra from others is not the high performance of the core technology but the prosperity environmental system An innovative and unique user-focused application built on it.

Decentralized applications such as Anchor, Mirror, Pylon, Mars, and Spectrum have opened a world of investment and payback farming opportunities on Terra, attracting hundreds of thousands of users and a notable number of developers to the protocol. In addition, after completing his last work Columbus 5 After the upgrade, Terra is now interoperable with blockchains such as Cosmos, Solana, and Polkadot, making its growing ecosystem of DeFi applications more accessible to participants in these blockchains.

Cross-chain interoperability also means more utility and increased demand for Terra’s flagship product – a decentralized, algorithmically governed stablecoin. Through bridges like wormy and TerraBridge, users can easily transfer UST between Terra, Ethereum, Binance Smart Chain and most other blockchains, and use it for various purposes across a multi-chain world.

Portfolio creation and financing

Interacting with the Terra ecosystem requires creating a wallet.

While there are many options that you can go for, arguably the best one is Terra station Wallet created by Terraform Labs. It is a noncustodial wallet available as a mobile app, browser extension, and a native app for Windows and iOS. It offers a similar user experience to MetaMask, albeit offering fewer features such as in-wallet token swaps or NFT support.

Source: Tira . station

Once you download Terra Station from Terra’s Official WebsiteFollow some simple steps to create a new wallet. Creating a backup copy of your seed phrase and storing it in a secure environment, preferably enclosed in air, is critical here. This is because Seed Phrase gives you – or anyone else – access to your private key, which in turn provides access to your money. It is therefore essential to write down the phrase seeds on a piece of paper and store in a safe place, or use a more permanent solution such as titanium.

After creating the wallet, you will need to fund it with some LUNA tokens. LUNA is Terra’s native betting token used for governance, mining, and volatility absorber for Terra’s stablecoin that captures rewards through booking fees and transaction fees. You need LUNA in your wallet to pay the transaction fee. The easiest way to get LUNA is to buy it through a central exchange such as Binance, Coinbase, Phemex or FTX. After doing that, simply drag the codes to your Terra Station wallet address, which can be found at the top of your browser extension or wallet app.

Alternatively, those with funds on Ethereum can purchase a laminated version of Luna (wLUNA) via Uniswap and transfer it to a Terra Station wallet via the Terra Bridge.

terra bridge
Source: Terra Bridge

File Navigation terra bridge Quite intuitive: Connect your Ethereum wallet to the Terra Bridge, select the Ethereum network in the From dropdown on the left side of the app, choose Terra on the right side, select LUNA in the Assets dropdown, set the amount, and paste a wallet address your Terra Station in the Destination Address, and click Next. Once the transaction is approved in your MetaMask, Terra Bridge will automatically exchange wLUNA for LUNA and deposit it to your wallet address on the Terra network. If you have money in Solana, you can do the same process to transfer money just using worm bridge.

Explore Tira

You’ve created and funded your portfolio, and now you’re wondering where to go next.

The first thing you might want to do is to turn on your purchased LUNA by installing it Terra station. Since Terra is a delegated proof-of-stake protocol, it relies on a group of 130 validators to verify, scan transactions, and secure the network by running entire nodes and executing new blocks in the blockchain. In exchange for their service, auditors and commissioners can earn a steady stream of revenue from transaction fees and fees, which currently come to approximately 7.07% for commissioners and 7.47% for auditors.

In order to become a validator on Terra, users must either associate their LUNA tokens for at least 21 days and be among the top 130 makers, or ask other users to delegate their LUNA stakes. This creates a way for everyone to put their LUNA tokens into action by stacking them or delegating them to auditors, who will then share a portion of the revenue they generate with the delegates.

Terra Sticking
Source: Tira . station

To authorize LUNA, go to Terra Station and select “Staking” in the menu on the left side of the page. When you do this, a new control panel will open showing a list of available authenticators. After selecting the validator of your choice by clicking on its name, another control panel will open, where you will be able to authorize your LUNA device by clicking on the “Authorize” button.

From here, you’re all set, and your tethered LUNA (bLUNA) device will automatically pay you back. However, if that’s not enough and you want to do more, you can use your own bLUNA codes on a file anchor A protocol to earn a greater return by borrowing floor tanks. Anchor pays you to borrow land lockers with their native ANC token, and land lockers can be deposited on the same protocol to earn a flat interest rate of 19.49%.

Borrowing and lending from Anchor is simple. Go to the ‘Borrow’ page in the app, click on the ‘Borrow’ button, select your desired loan-to-value ratio and deposit your bLUNA collateral. Once you do that, you will have the floor lockers in your wallet, which you can use for anything you want, including buying other Terra-native tokens at TerraSwap, invest in synthetic stocks or provide liquidity on Mirror, or farming on the spectrum protocol.

Getting to know Terra while the ecosystem is still relatively young and sophistication can give users a serious advantage over the broader market. Some of its decentralized applications such as Anchor and Mirror have become successful and large enough to rival even some of Ethereum’s DeFi “blue chips”. Terra had a breakout period in 2021, entering the top 10 cryptocurrencies by market capitalization as LUNA soared above $100 for the first time. With protocols like Mars, Spar, Loop Finance and Alice expected to launch in early 2022, Terra is well positioned to continue its path and see adoption increase in the future.

Disclosure: At the time of writing, the author of this feature owns ETH and several other cryptocurrencies.

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