Terra: what's missing?

Here's a thought.

What was Terra when it started, at base?

Terra had this wonderful idea to have an algorithmic stable coin backed by $LUNA. That worked until it didn't.

I think we've appropriately addressed the 'til it didn't'-part with, e.g.: @TeamKujira $USK, and others.

Is Terra 2.0 good now? That is to say: is it anywhere near its former glory?

No.

Is it heading back to its former glory?

No.

Why?

Let's think on this, because why? Because I love Terra and I think it does have the potential to rise, again.

But it needs to do some things.

Stable Coin

The first problem I think Terra needs to address is that it doesn't have a stable coin.

"It has axlUSDC!" you say.

Sorry: it doesn't have a SECURE stable coin.

Terra needs to adopt, comprehensively, a secure, decentralized, stable coin, otherwise, it's no different and not appealing.

So, just make $USK the means of exchange, or, if not that, there are at least 2 other decentralized stable coins out there, or roll your own. ... '$UST2'?

I don't care WHAT the decentralizes stable coin is for Terra, I do care that Terra DOES need it and DOESN'T have it.

I tried to do a LUNA-USK swap on @astroport_fi and it just laughed at me, frenz.

Sine qua non

Why does Terra 2.0 'need' a decentralized stable coin?

What was Terra (classic), at base, when it started?

It was four things:

1. UST

2. LUNA

3. Anchor

4. Mirror

All four played a part in each other, all four created Terra (Classic) the likes of what hasn't been seen since.

What is Terra 2.0, at base?

1. _

2. LUNA

3. Anchor 2.0 in several protocols @CavernProtocol @capapult 

4. _

A table with 2 legs.

How has that worked for Terra 2.0 so far?

Now. You see I listed Capapult-as-Anchor, but I didn't list $SOLID-as-stable-coin.

Why?

Widespread adoption? Use case?

Please tell me either one, ... convincingly.

I'll tell you a convincing use-case.

Terra Classic $UST.

The reason why $UST worked for so long was that you could provide it to @anchor_protocol, minting $aUSK, then provide that to @mirror_protocol, minting synthetic assets which you could:

• HODL
• long (or LP)
• or short farm.

Do you see the interplay here?

• $UST deposits on @anchor mints $aUST, a LIQUID STAKING TOKEN!
• $aUST mints m-tokens on @mirror_protocol, SYNTHETIC ASSETS!

$LUNA backs $UST with burn or inflate to maintain the peg just fine without stupid loans, which I voted against every one

That is to say: there were at least two protocols:

• @anchor_protocol, anchoring Terra, and then, the whole frikkn world and
• @mirror_protocol, providing synthetic assets, or, in other words, a MATERIAL and DIVERSIFIED reason for me, and everyone else, to have and to want $UST.

What does @capapult $SOLID have, besides bids on liquidations to LSD $LUNA tokens?

I mean, the liquidation protocol is good, excellent, in fact. I'm going to start bidding on $ampLUNA rsn.

• But give me a non-circular use-case for $SOLID.
• Give me the LSD of $SOLID?

I'll wait.

I'm neither dragging @capapult nor $SOLID.

I am dragging Terra 2.0.

Terra Classic had the 4 pillars of $LUNA, $UST, @anchor_protocol and @mirror_protocol. That's ALL it needed to reach #3 in the whole g-d world.

Terra 2.0 has, viably, 2 of the 4 pillars.

The two missing pillars for Terra 2.0 are a decentralized stable coin and a raison d'être for it.

The above is a question.

The answer is also a question.

Where is Mirror 2.0?

Until we have a reason to spend stables, all we do is HODL'm.

HODL'n doesn't catalyze transactions.

Terra 2.0 is so close. But, until @TheLionDAO, Terra blockchain was a silent blockchain.

So, the good news is that Terra 2.0 can succeed.

More good news? @mirror_protocol is open-source. Somebody who's done these things can just fire up the system (in testnet) and off we go!

But, is @mirror_protocol the way to go? Sure.

But if it isn't, there are other approaches to synthetic assets, e.g.: 

• @arbitrum @synthetix_io (I don't understand options contracts on @lyrafinance, however) and

• @Cardano @Indigo_protocol, also open-sourced. 

So, after all that, 'a all tha'

Still, a man's a man, for all tha'

This opens up an opportunity.

@Indigo_protocol: Terra 2.0 is this close.

Launch on Terra 2.0 and the broadly-acknowledged transactional woes on Cardano just go away. You take LSD $SOLID and $LUNA as collateral.

This way, you pave the path for a reason to fill the much-needed pillar of a decentralized stable coin on Terra AND you set transactions on the blockchain on 🔥. You benefit. @capapult benefits. Terra benefits.

Think about it. Please.