What is the Terra protocol?

The Terra protocol is the leading decentralized and open-source public blockchain protocol for algorithmic stablecoins. Using a combination of open market arbitrage incentives and decentralized Oracle voting, the Terra protocol creates stablecoins that consistently track the price of any fiat currency.

What is Terra & how does it work?

Luna provides its holders with staking rewards and governance power. The Terra ecosystem is a quickly expanding network of decentralized applications, creating a stable demand for Terra and increasing the price of Luna. The protocol consists of two main tokens, Terra and Luna. Terra: Stablecoins that track the price of fiat currencies.

How does the Terra market module work?

The Terra protocol’s market module enables users to always trade 1 USD worth of Luna for 1 UST, and vice versa, incentivizing users to maintain the price of Terra. This same principle is true for all Terra stablecoin denominations. Users can access the mint and burn function of the market module by performing market swaps in Terra Station .