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    Terra -> Osmosis

    Are Terra projects interested in migrating over to Osmosis? What is most important to Terra developers when looking for a chain to migrate to and why might Osmosis be a good choice?

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    Introduction

    What is Osmosis?

    Osmosis is a decentralized peer-to-peer blockchain that people can use to create liquidity and trade IBC enabled tokens. The Osmosis blockchain is made up of free, public, and open-source software.

    What is Terra Luna

    The Terra blockchain is built on Cosmos SDK; a framework that allows developers to create custom blockchains and build their own decentralized applications on top of Terra for various use cases. Terra is a blockchain protocol underpinned by a suite of decentralized stablecoins. The most popular is called TerraUSD, or UST. The stablecoins maintain their pegs through a coin called LUNA. LUNA is a volatile cryptocurrency. The elasticity of its supply keeps the prices of its stablecoins in check.

    What happened to Terra?

    During early May of 2022 the UST stablecoin of the Terra ecosystem lost its peg. In response to this there was a bank run on UST this bank run destroyed the price of UST and led LUNA to hyperinflate.

    What did Osmosis do in response to this?

    The two most popular proposals on Osmosis in the past 2 weeks were both having to do with reducing the Osmosis networks exposure to the depegging of the UST token. This is important because Osmosis had a lot of UST in their liquidity pools.

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    Why would a Terra developer move to Osmosis

    • The first reason that Osmosis would be chain for terra developers to developers is that both terra and osmosis are connected to IBC, use rust, and use cosmowasam in development. This is very beneficial because developers of Terra will have not to learn new skills to be effective builders on Osmosis.

    • The second reason that Osmosis would be a good place to move is that many of the builders and community members that were involved with Terra are also involved with Osmosis. So their builders will find people who appreciate and understand their skills.

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    Conclusion

    • During early May of 2022 the UST stablecoin of the Terra ecosystem lost its peg. In response to this there was a bank run on UST. This bank run destroyed the price of UST and led LUNA to hyperinflate.

    • Osmosis is similar and connected to Terra so it would be a very good place for many Terra developers to start building.