Terra is the latest chain to enable IBC.
As more Cosmos-enabled blockchains activate IBC (Inter-Blockchain Communication), the interoperable Internet of Blocks grows. Terra is the latest major player to join Cosmos IBC Gang. It brings its native LUNA token, popular stablecoin USD Terra and other innovative protocols to its booming ecosystem. This is more than $18 trillion in digital assets and liquidity joining the interconnected Cosmos network.
Terra’s addition brings the total number IBC-enabled chain to 18 and registers over 1.2 million IBC transactions each month. We couldn’t be happier to see the Cosmos vision come to life and cross-chain DeFi truly beginning to take shape. Let’s have a closer look at Terra to see what this new development means for Cosmos.
Terra’s Ecosystem is Worth More Than $18 Billion
Terra is an application-specific, blockchain that uses the Cosmos SDK. Terra is a blockchain that supports applications. It uses the Cosmos SDK. Terra has a range of fiat-pegged algorithmic stabilizecoins and new DeFi protocols. Together, they are worth over $18 billion. Terra currently has more than $9Billion in TVL and a $16B market cap for its native LUNA token. Terra USD (UST), with an outstanding supply of almost $2.8 billion, is the fifth-largest stablecoin in terms of market cap.
Terra’s digital financial system of stable payments and open infrastructures is maintained by its range of stablecoins that provide users with instant transaction settlements and low fees and can be exchanged across multiple different blockchains for optimal interchangeability and fluidity. Terra will be focusing on enabling IBC with LUNA and UST first, but soon its quickly-growing DeFi protocols will follow — that includes Anchor Protocol, Mirror Protocol, and Pylons. Terra users can now connect cross-chain with Cosmos IBC-enabled chains that currently include Cosmos Hub (ATOM), IRISnet (IRIS), Osmosis (OSMO), and Crypto.com (CRO).
“For the past several years, we’ve been building Terra’s infrastructure foundations with Tendermint and Cosmos technology. Now, we’re thrilled to have activated IBC to make our range of stablecoins, protocols, and native LUNA token available for trading cross-chain,” said Do Kwon, CEO of Terra Money. “We share in the Cosmos vision of an interconnected multichain future and it has always been our plan to make our stablecoins available to every developer on every blockchain,” he added.
Enhancing Trading on Cosmos DEXs
Not only does Terra’s inclusion in the Internet of Blockchains advance our vision of seamless interoperability between different blockchain ecosystems but it also enables vast liquidity to flow freely between major chains. This will help to enhance the trading experience on Cosmos’ cross-chain decentralized exchanges (DEXs) and drive adoption of Cosmos’ DeFi protocols, such as Gravity DEX, Sifchain, Coinswap, and Osmosis.
“Terra’s community voting to activate IBC is testament to the utility of interoperability in unleashing cross-chain DeFi opportunities,” said Peng Zhong, CEO of Tendermint. “Terra’s IBC integration makes it easy for Terra-based assets, assets bridged onto Terra, and wallets like Terra Station, to interoperate with Cosmos’s vast rapidly growing network of blockchain applications.”
Welcome, Terra, to the Internet of Blockchains! We can’t wait to see what the future holds!
