Terra has introduced its indigenous token LUNA and the widely accepted stablecoin USDTerra (UST) to the integrated ecosystem by joining the Cosmos-enabled chain. The Cosmos network ends up with more than $18 billion of digital assets in liquidity with this Terra entry. With this, the imminent expansion of interoperable Internet of blockchains has gained momentum.
Now the number of IBC enabled chains stand at 18, and a whopping 1.2 million IBC transactions take place in a single month. The Cosmos long-term goal of cross-chain DeFi is moving towards accomplishment.
This integration is a win-win situation for both Terra and Cosmos.
Terra being an application-specific blockchain, is worth the higher side of $9 billion in TVL and more than $16 billion for Terra Luna token. Terra USD is the fifth largest stablecoin in the market, with a supply of $2.8 billion. Built on the Cosmos SDK, it provides users immediate transaction settlements at low fees and also across multiple blockchains enabling interoperability and fluidity at the same time. With the latest activation, Terra users can connect cross-chain with Cosmos IBC-enabled chains like IRISnet (IRIS), Cosmos Hub (ATOM), Crypto.com (CRO), and Osmosis (OSMO).
As of now, Terra is focusing on enabling IBC with LUNA and UST, but it is a matter of time before other quickly-growing DeFi protocols like Anchor Protocol, Mirror Protocol, and Pylons will also be enabled.
Do Kwon, CEO of Terra Money, mentioned that for many years, they have been building Terra’s infrastructure foundations with Tendermint and Cosmos technology. Now, they are excited to have activated IBC such that their stablecoins, protocols, and native LUNA tokens are made available for trading cross-chain. He added that they share a common vision with Cosmos to interconnect multichain future and make stablecoins available to all developers on all blockchains.
Improved Trading on Cosmos DEXs
With the recent activation, liquidity flows can happen freely between major chains. This, in turn, will help to improve the trading experience on Cosmos’ cross-chain decentralized exchanges (DEXs) and will also accelerate the adoption of Cosmos’ DeFi protocols, like Sifchain, Gravity DEX, Coinswap, and Osmosis.
Peng Zhong, CEO of Tendermint believed that Terra’s IBC integration makes it a breeze for Terra-based assets, and the assets bridged to Terra, and wallets like Terra Station, to interoperate within Cosmos’s rapidly expanding network of blockchain applications. He also added that the community voting by Terra to activate IBC stands testament to the importance of interoperability in leveraging cross-chain DeFi opportunities.
With the advent of Terra to the Internet of Blockchains, the future sure seems glorious.