Add Support for Terra

Proposal Summary

Trust Wallet is looking to add support for Terra, a blockchain protocol that uses fiat-pegged stable coins to power price-stable global payments systems.

What is Terra?

Terra is from South Korea’s, Terraform Labs. It aims to address three key blockchain challenges:

1. low speed by organizing nodes to facilitate better peer-to-peer communication
2. centralization of dapps by providing decentralized hosting
3. integration with the web by simplifying development through the use of familiar web tools (HTML and Javascript)

Terra has two native coins, LUNA and stable coin TerraUSD (UST). The dual coin system allows TerraUSD’s peg to USD to be achieved via arbitrage rather than reserves. Additionally Terra plans to add cross-chain interoperability with Ethereum and Solana.

Ultimately Terra allows the creation of regional stablecoins that are crypto-collateralized rather than pegged to a specific fiat currency. In turn, this should allow the creation of a new, faster and lower-cost payment network without the volatility typically associated with crypto assets.

Benefit to Trust Wallet

Terra is dependent trading activity from arbitragers to maintain stablecoin prices. By giving Trust Wallet users the ability to stake LUNA, they benefit by:

1. receiving transaction gas fees
2. tax fees
3. Rewards and profit pools from seigniorage activity

Additional Resources:

• Terra Foundation
• Binance Research