Terra (LUNA)

Terra is a blockchain platform focused on providing stablecoins and decentralized financial applications. Its native token, LUNA, is used for governance, staking, and maintaining the price stability of Terra's algorithmic stablecoins, such as UST. Terra’s stablecoins are pegged to various fiat currencies and are stabilized through an arbitrage mechanism involving LUNA, where users can swap between LUNA and Terra stablecoins to maintain the peg. Terra gained significant adoption in the DeFi space with applications like Anchor Protocol (for lending and borrowing) and Mirror Protocol (for synthetic assets). Example: TerraUSD (UST) is a stablecoin that maintains its value through Terra’s algorithmic system, which relies on LUNA to absorb market volatility.