Router Protocol Recieves Grant from Terra Blockchain

Router Protocol has received a grant from Terra to expand Router’s cross-chain liquidity infrastructure to Terra.

Terra is an application-specific blockchain built on the Cosmos SDK and Tendermint consensus. The Terra protocol deploys a suite of algorithmic, fiat-pegged stablecoins underpinning a thriving DeFi ecosystem like Anchor, CHAI, and Mirror Protocol. LUNA, the native staking and governance asset of Terra, absorbs the short-term volatility of Terra’s stablecoins, with Terra’s stablecoin (e.g., UST) demand a function of demand for Terra’s DeFi ecosystem — accruing value to LUNA via seigniorage.

At its core, the Terra protocol functions similar to an open-source, on-chain, decentralized central bank — calibrating supply and demand based on an elastic supply model of LUNA, the network’s native staking and governance asset, which absorbs the short-term volatility of the network’s stablecoin pegs in return for predictable, stable long-term mining (i.e., staking) rewards for validators.

The result is a scalable, censorship-resistant currency medium for cross-chain DeFi, stoking demand for apps in the Terra ecosystem, absorbing a TVL of roughly $7 billion — 4th among public smart contract chains.

Router Protocol’s flagship product — Cross-Chain Liquidity Protocol XCLP — will soon be able to support Terra. This means users will be able to seamlessly migrate liquidity from chains like Ethereum, Avalanche, BSC and Polygon to and from the fast-growing Terra chain.

About Terra Money

Terra is a public blockchain built on the Cosmos SDK and Tendermint consensus that deploys an algorithmic stablecoin suite baked into the on-chain layer of the blockchain. Terra’s vision is to wield stablecoins as the conduit for the mass adoption of crypto applications, with fiat-pegged stablecoins maintaining their peg parity via an algorithmic model underpinning a thriving ecosystem of DeFi and mainstream-oriented applications.

About Router Protocol

Router Protocol is building a suite of cross-chain liquidity infra primitives that aims to seamlessly provide bridging infrastructure between current and emerging Layer 1 and Layer 2 blockchain solutions.

📰 INFO

https://routerprotocol.medium.com/router-protocol-receives-grant-from-terra-blockchain-d87c4e36331c