Terra chain
Overview
Terra is a blockchain protocol that originally issued algorithmic stablecoins, most notably UST, stabilized by its native token LUNA. It operated as a proof-of-stake smart contract platform. The network collapsed in May 2022 after UST lost its peg, leading to a hyperinflation of LUNA and a full chain halt.
Within the DeFi Intel graph, Terra connects to 8 tracked entities, most strongly to Lido, Portal, Portal.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 8 of 8 total).
| Relation | Connected entity | Confidence |
|---|---|---|
deployed_on | Lido | 95% |
bridges | Portal | 95% |
deployed_on | Portal | 95% |
founded | Do Kwon | 95% |
deployed_on | Portal | 85% |
deployed_on | InsurAce | 85% |
deployed_on | Risk Harbor | 85% |
covers | Jane Street dismisses insider trading allegations over role in $40bn Terra collapse as 'self-defeating' | 70% |
Frequently asked questions
What is Terra?
Terra is a blockchain protocol designed to create price-stable cryptocurrencies (stablecoins) through an algorithmic mechanism involving its native token LUNA. It also supports decentralized applications via the Cosmos SDK.
What caused the Terra collapse?
The collapse began when the stablecoin UST lost its dollar peg, triggering a bank-run dynamic where users redeemed UST for LUNA, massively increasing LUNA supply and crashing its price. The algorithmic stabilization mechanism failed under extreme pressure.
Is Terra still active?
After the collapse, the original Terra blockchain was forked by the community into Terra Classic (LUNC) and a new chain called Terra 2.0 (LUNA), both of which remain operational but with significantly reduced usage and market activity.
What is Terra connected to?
In the DeFi Intel knowledge graph, Terra is linked to 8 other tracked entities, most strongly to Lido, Portal, Portal.
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