Terra Protocol (LUNA) rallies 66% after DeFi and stablecoin launch

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Throughout 2020 a handful of new stablecoins launched and many analysts have suggested that stablecoin growth is the backbone of the crypto sector and partially responsible for the current Bitcoin rally.

For many traders, stablecoins provide a safe place to shelter during volatile periods in Bitcoin and altcoins but there are other ways to interact with these fiat-pegged assets.

Terra Protocol aims to create a programmable algorithmic stablecoin available on every blockchain. Similar to its better-known competitor, Maker (MKR), Terra Protocol has a native stabilizing crypto-asset called LUNA.

The project was created by a partnership of 15 large Asia-based e-commerce companies that serves more than 30 million users. Its ecosystem focuses on building efficient, scalable, competitive programmable payments.

Ahead of its March 2019 ICO, the company raised $32 million in a seed financing round that included Hashed, Polychain Capital, Huobi, and XRP Arrington Capital.

Terra’s key element is the Chai payments app, which now has over a million downloads on the Android store. Users can accumulate points that can be redeemed for merchant rewards with Chai’s partners.

These partners include TMon, Qoo10, Yanolja, Megabox, and Musinsa, which offer benefits in exchange for marketing promotion to Chai’s member base.

The company also offers a debit card called the Chai Card, which launched in June 2019. On Dec. 9, Chai received a $60 million Series B investment from SoftBank and Hanwha Investment & Securities.