Mapping the Terrain

Key Insights

• LUNA outperformed the aggregate other smart contract ecosystem tokens 7:1 in price returns in the first 2.5 months of 2022.
• Terra’s TVL market share among the emerging smart contract ecosystems is up 54% in 90 days to now represent a third of the emerging ecosystem TVL.
• Most of the TVL growth has come from debt protocols as Anchor has grown by $5 billion in 30 days. Deposits are largely chasing Anchor’s 20% yield as debt has only grown one-third relative to deposits.
• 51% of Terra TVL is in debt protocols, 8% in DEXs, and 36% in staking protocols. Other emerging ecosystems have roughly a third of their TVL in debt protocols and just under half in DEXs.
• New structurally important protocols (DEXs and money markets) have recently launched and are a key source of future growth.
• Key risk is in unwinding of the Anchor UST deposits which could potentially over-supply the UST market outside of the protocol.