The DeFi protocol has been teased as a game-changing opportunity for the Terra Classic community.
Terraport, the recently-introduced DeFi platform on the Terra Classic network, has once again confirmed the numerous benefits it will bring to the LUNC token, including the incineration of LUNC with every transaction and an increase in on-chain volume.
The team behind the DeFi protocol recently made these disclosures in a dedicated tweet, outlining three points through which the platform can be beneficial to the LUNC community. This comes two weeks after its whitepaper was released, with TerracVita, the development group behind the protocol, calling it the “rebirth of utility on Terra Classic.”
What benefits does Terraport bring to Terra Classic?
?Increases the value of $LUNC by increasing deflation through burning
?Increasing onchain volume: DEX works on Terra Classic network
— Terraport Finance (@_Terraport_) January 29, 2023
According to the recent tweet, the platform is expected to burn LUNC and TERRA – its governance token – with every transaction carried out. Due to its robust offerings, which include a DEX and a launchpad, this could be a potential pivotal point for the Terra Classic community which has persistently voiced out a desire to introduce utility to the ecosystem and concurrently expedite burns.
Secondly, the team noted that Terraport could very well contribute to the increase in LUNC’s value due to its persistent burns. Within the project’s Whitepaper is a plan to buy back and burn LUNC tokens with 27% of fees received each week. Due to its promising nature, there is a consensus among proponents that the protocol could burn billions of LUNC every week. This would provide ample support for the asset’s price action.
The third benefit that Terraport promises for LUNC is hinged on its embedded decentralized exchange (DEX) which is expected to run on the Terra Classic network. Once the DEX is up and operational, all transactions processed would contribute to the on-chain volume of LUNC, leading to an increase. However, this will be based on the rate at which the community utilizes the DEX.
Introduced by the TerraCVita development group, Terraport claims that its goal is to restore utility to the Terra Classic ecosystem and bring DeFi to the general public. TerraCVita raised $2M for the project two weeks back, a few days after securing a $1M funding. The presale of the governance token TERRA is expected to end in 9 days as of press time.