Terra is a thriving payments network that is supported by a basket of stablecoins pegged to the world’s largest currencies. Today, these stablecoins largely flow through Terra’s flagship app, CHAI, which recently crossed 1M MAU and over $3M USD in daily transaction volume. Terra is backed by an impressive team and some of the world’s best investors.
Together we’re building a new high-speed token bridge that facilitates the transfer of Terra stablecoins into Solana’s dapp ecosystem. Terra’s tokens will be the first stablecoins on the Solana network. By bringing stablecoins onto our network, we aim to dramatically expand the design space for developers, opening the door to novel applications that require price-stable payments. Similarly, and by the same token, we hope to support Terra’s expansion by creating a seamless gateway to our developer community.
To facilitate the bridge, we’re building two smart contracts (contract T and contract S respectively) that will each be deployed on both platforms by May 2020. The bridge leverages a mint-and-burn model via these mirrored smart contracts. Users can mint specific Terra tokens on Solana by calling a burn transaction on contract T and then minting a transaction on contract S by submitting a proof to Solana that the Terra tokens were burned using contract T. This works in both directions, creating a two-way warp.
As history has shown, stable payments are the foundation of some of the most successful DeFi applications. It’s our hope by prioritizing support for stablecoins with Terra that we can accelerate the DeFi ecosystem within Solana.
Beyond the bridge, this is an important step for both communities, as we also envision a close partnership moving forward. We are encouraged by the support that Terra has shown Solana during the time we’ve worked together and expect big things to come from this partnership.
To learn more about the Bridge with Terra, please view the design proposal here.
Solana is a high-throughput blockchain that is currently supporting 50–65k transactions per second and 400ms block times, without complex solutions like sharding or layer-two. As the world’s first web-scale blockchain, Solana will unlock a whole new class of performant applications and facilitate larger scale blockchain adoption. Utilizing a revolutionary innovation called Proof of History, Solana is drastically able to outperform any other existing layer 1 and provide fees at $0.00001 per transaction.