Terra

Terra is a blockchain protocol and suite of stablecoins aimed at creating a new decentralized digital money ecosystem. Its flagship stablecoin TerraUSD (UST) uses algorithms to maintain a peg to the US dollar by dynamically adjusting its supply using Terra's native LUNA token as collateral. Other Terra stablecoins are pegged to currencies like the euro, yen, and Korean won.

Terra's core products facilitate using its stablecoins for payments, savings, and investing. CHAI is a popular payments app allowing users in Korea to pay online merchants and stores using Terra stablecoins. Anchor is a lending platform where users can earn high yields on their UST deposits by supplying capital to lending markets. Mirror allows users to gain exposure to synthetic assets tracking real-world stocks and securities.

Launched in 2019 by Terraform Labs, Terra grew rapidly with its stablecoins reaching over USD 18 billion in circulation by early 2022. However, UST depegged from the dollar in May 2022 during a period of crypto market volatility. Its stablecoin mechanism failed, causing UST's price to crash to nearly zero and wiping out over USD 40 billion in value. The blockchain halted all operations in the aftermath.