October 5, 2022

Why Terra Co-Founder Do Kwon Hyped Up This UST-based Airdrop

3 min read

The Terra environment keeps broadening, increasing the total market cap of its native token LUNA. The cryptocurrency has handled to get in the leading 10 digital properties by market cap changing memecoins DOGE and Shiba Inu (SHIB).

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Since press time, LUNA follows the basic sentiment in the market with a 4.4% loss in the recently, however some earnings in lower timeframes. The Terra-based cryptocurrency trades at $49,58 and has seen much less loss than bigger cryptocurrencies, such as Bitcoin and Ethereum, which record over 10% losses in the same period.

LUNA moving sideways on the day-to-day chart. Source: LUNAUSDT Tradingview

Terra’s success seems supported by its procedure’s tool to offer users with large opportunities to generate earnings by means of staking or “locking down” their tokens. Because sense, the community’s stablecoin UST has likewise seen impressive growth zooming on Tether (USDT), and USD Coin (USDC), in regards to market cap.

Via his Twitter account, Do Kwon, Terraform Labs Co-Founder, mentioned a new use case that seems poised to increase the need for UST. Loaning and borrowing platform Mars procedure revealed the start of its lockdrop which incentivizes users to lock their UST to receive rewards.

I’m can be found in https://t.co/7jRgSEVR31

—– Do Kwon 🌕

( @stablekwon) February 21, 2022 User will yield farm the protocol’s governance token MARS by locking any amount of the stablecoin for the next 3 to 18 months, as clarified in a main statement. After this duration is concluded, the user will be able to withdraw 100% of their initial financial investment. The team behind the procedure said:

All individuals who lock $UST will receive a “drop” of totally transferable MARS governance tokens when the full protocol launches in ~ 2 weeks. As well-informed DeFi users with skin in the game, lockdrop participants will get the vast majority of flowing MARS tokens at launch (around March 7).

Terra Enables More Yield Farming Opportunities

Produced as an open-source, algorithm, and non-custodial credit protocol supported by its own governance model, the Mars protocol will distribute 10,000,000 MARS governance tokens to individuals within the Terra ecosystem. The airdrop has the goal of assisting Mars to “work effectively”.

Source: Mars Protocol by means of Medium

In addition to those users locking their UST on the procedure, liquidity companies for the MARS/UST trading pair on the decentralized exchange Astroport will be able to earn a part of 10,000,000 in the governance token for 1 year. This process will be post-launch and will include those users with UST deposits to the Red Bank.

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LUNA holders will gain from this launch, as stated by the team behind Mars, with a one-time distribution on 10,000,000 MARS. In order to get the airdrop, users needed to be stakers by January 1st, 2022, when a photo was taken to determine the recipients. The announcement included:

Airdrop recipients will have the ability to declare their tokens for approximately 3 months after the launch of Mars. Any unclaimed tokens will be gone back to the Martian Council– a DAO of xMARS token holders.