The Terraport project is among the many products the TerraCVita development team plans to bring to the Terra Classic ecosystem in a bid to facilitate the revitalization of LUNC. According to the team, Terraport promises to be very instrumental to the growth of the Terra Classic network.
Notably, Terraport is a Terra Classic layer 2 decentralized finance (DeFi) project, powered by the independent LUNC development team, TerraCVita. In a Thursday Twitter thread, Rex Harrison (also known as Rexyz) disclosed to the Terra Classic community Terraport’s ultimate goal for LUNC and why the Terra Classic community needs Terraport.
Rexyz noted that the major reason behind the development of the LUNC L2 DeFi project is to enhance the interest Terra Classic gets from crypto investors. Particularly, he cited that Terraport aims to provide a sustainable decentralized exchange (DEX) with different trading pairs for LUNC.
With this, he said, more crypto investors would buy and hodl the LUNC asset, thereby increasing the token’s market cap and value over time. But he emphasized that the success of Terraport would largely depend on how much liquidity would be available on the DEX.
He wrote:
“Why [do] we need Terraport? The primary purpose of Terraport is to create a sustainable DEX to create trading pairs to make it easy for investors holding other tokens to swap with LUNC thereby attracting investment into LUNC. For a DEX to work it requires liquidity.”
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In other words, he said Terraport would help make LUNC more accessible and in turn, cause its trading volume to increase substantially. In an earlier report by Times Tabloid, LUNC’s price recorded a notable spike as its 24-hour trading volume rose to $130 million on Monday.
Additionally, Harrison reiterated that Terraport would greatly support the ongoing LUNC burn expedition, which aspires to reduce the total supply of Terra Classic to 10 billion units.
This latest disclosure from Rexyz comes about a week after the TerraCVita team revealed that Terraport Finance would burn LUNC from every transaction made on the trading platform. This served as an explanation of how the team intends to burn billions of LUNC weekly as noted in the Terraport whitepaper.
As revealed by TerraCVita, which successfully raised $3 million to build Terraport, the DeFi project would be launched before Q2 of 2023.
