Simply put, Terra station is a decentralized blockchain protocol powering programmable and stable money for the internet. It’s building the foundation for a new digital economy with its stablecoin protocol, oracle system, smart contracts, and plan for mass-user adoption.
Terra operates on the Ethereum and Solana blockchains with more blockchains coming soon and is supported by a basket of stablecoins (TerraSDRs) pegged to fiat currencies commonly used in e-commerce.
Unlike centralized stablecoins backed 1:1 with the US Dollar like USDC and GUSD, Terra’s stablecoins are algorithmically stabilized and backed by Terra’s native cryptoasset, $LUNA which benefits from staking rewards to boost network effects (more on this later).
Terra achieves price-stability in its TerraSDRs by algorithmically adjusting their supply according to fluctuations in demand. A far more detailed and complex explanation of how this works can be found here.
Besides Terra’s innovation in stablecoins, the team behind it understands that if its protocol and stablecoins are to succeed in making a global economic impact, it needs to maximize its adoption and network effects.
That’s why Terra has a clear plan for the adoption of its stablecoins through global payment channels for both merchants and consumers. Stablecoin payments powered by Terra replaces the complicated payments value chain made up of banks, credit card networks, and payment gateways with a single blockchain layer.
Terra stablecoin payments offer instant settlements, low fees, and seamless cross-border exchange and their mass adoption is being bolstered through multiple partners and a growing ecosystem of products utilizing Terra’s blockchain infrastructure: