🗞Terra is back but is it any better?

GM folks!

At This Week In Web3 we like to make your Sunday productive with web3 updates you need to know at a glance. From the ever-bustling land of web3, we have picked and created everything that matters, so this week we have:

  • Polkadot’s Moonbeam Announcement

  • Terra Resurrects but for what?

  • Wealth for web3

  • Work in web3

  • Interesting Reads

Estimated reading time: 3.44 minutes

This week in crypto 📈

psst...keep an eye out for Chai Lopez. 👀

Weekly web3 wrap 🗞

Polkadot’s Moonbeam Announces Integration Of Liquid Staking Giant Lido

Moonbeam is a connectivity layer between the Ethereum blockchain and services being built on Polkadot. Moonbeam is working with Lido, a staking derivatives platform allowing ETH and other cryptos locked up in staking contracts to be used elsewhere.

The integration is being facilitated by staking specialist MixBytes.

Moonbeam is being positioned as the best place to make multi-chain apps, as the team believes there’s a shift from people deploying apps with a single chain to deploying them to multiple chains, which is why Polkadot was built.

Here are some of the features the Lido integration enables, which is being facilitated by staking specialist MixBytes:

  • DOT holders can stake their assets in the form of xcDOT (cross-chain DOT), for which they receive a stDOT (staked DOT) token.

  • Both xcDOT and stDOT are XC-20 tokens, a token standard created by Moonbeam for compatibility between the Ethereum Virtual Machine (EVM) and the Substrate framework that powers Polkadot.

Polkadot is helping people who have pledged to support its proof-of-stake network earn additional income by enabling them to earn interest on their cryptocurrency in decentralised finance applications. Get more on the scoop here.

More Web3 news you should know about 👇

👮 OpenSea's Former Head of Product Arrested by the FBI

🎙 Kanye West Files 17 Metaverse And NFT Trademark Applications!

♦️ Apple's upcoming developer conference sparks rumours of NFT trading cards

🪙 China to Airdrop $4.5 Million in e-CNY to Shenzhen Residents to Bolster Local Economy

💻 Mirror Protocol (Terra network) was exploited for ~$90M

Terra 2.0: Do Kwon or Not-to-Do Kwon?

In May, Terra spiralled into its collapse leading to a loss of over $40 billion in investors’ money. Despite resistance and heavy backlash, Terra co-founder Do Kwon managed to relaunch the collapsed network with a new chain called Terra 2.0 (Phoenix-1).

What’s the deal?

  • The new token stays Terra (LUNA) and the old one was rebranded to Luna Classic (LUNC). The holders of LUNC, USTC and Anchor Protocol UST (aUST) are eligible to receive the new tokens.

  • The amendment proposal for the relaunch, introducing a new liquidity profile for pre-attack LUNC holders and decreasing the distribution to post-attack TerraUSD Classic (USTC) holders, was approved by the community with a 65% vote in favour.

What’s do the giants say?

  • Major crypto exchanges including Binance, Kucoin, FTX, and Bitfinex announced support for the Terra 2.0 chain.

  • Binance CEO Changpeng “CZ” Zhao has expressed his pessimism about the future of the Terra 2.0 ecosystem, but he said: “We still need to ensure continuity of people's access to liquidity. We have to support the revival plan hoping that it may work.”

  • Kraken CEO Jesse Powell defended listing LUNA, saying it’s the community’s demand. But he also mentioned that a listing doesn’t necessarily equal an endorsement for the controversial token.

And the public response?

  • Many investors claimed that they were not appropriately compensated for the new airdrop and called the airdrop a mockery. The Terra 2.0 team acknowledged the issue and said they are working to resolve the issue soon.

  • The new token showed very high price volatility on the very first day of the relaunch, showing a lack of confidence in the new ecosystem.

What does it mean?

Unfortunately, Do Kwon was also behind another failed stablecoin project called Basis Cash (BAC), that’s why a future project led by him would be hard to trust.

Even if he wasn’t responsible for the mismanagement, his involvement with Terra 2.0 will keep people away, at least in the near future. But we’ve already seen failed executives hop from one project to another.

But the Terra and Terra 2.0 story is still unfolding. Whether anything malicious happened with the stablecoin or if it was just a failed experiment, only time will tell.

What do you think? 👀

Work in Web3 👩‍💻

🛠 Opportunities at MetaMask

👩‍💻 Work at CoinDesk

💲 Join Nothing

Entering the web3 space can be overwhelming and you need a friend to walk you through it. Join TPH's space on Opportunities in Web3 and set your reminder for Wed, 8 June, 8 PM. Let us help you out. 🤝

Wealth for Web3 💰

  • Dework, a web3 native Trello with token payments, raises $5 million. The seed round was led by Paradigm and Pace Capital, with participation from former Coinbase CTO Balaji Srinivasan and Polygon founder Sandeep Nailwal.

  • Binance Labs raises a $500M fund. The new fund will invest in cryptocurrency companies in three stages spanning from incubation to late-stage growth.

Interesting reads from this week 🤓

Elon's brother on his DAO nonprofit: "It has never, ever, ever, ever, ever, ever, ever been done."

Sketchnote ✍️

Time to learn a web3 concept in a sketchnote, this time it's about BLOCKCHAIN! Where do we get this information from? Web3 Fundamentals - a masterclass with seasoned web3 builders where you learn this and more.

That’s a wrap for This Week in Web3, see you next week!

🚀 Check out The Product house to start your Web3 journey with live learning masterclasses & workshops by seasoned web3 builders!

💻 And if you’re an early-stage Web3 builder going from 0 to 1, holler at our creative-capital studio Spacekayak and let’s great something extraordinary, through design!

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