Nothing says space romantic in crypto-currency like … making profits in the Terra ecosystem. Terra, the earth, offers stability; LUNA, the moon, enables control and staking profits. Let’s see how to fly to the moon and back with Terra (LUNA) coins.
Terra ecosystem is designed to provide stablecoins, with LUNA coins ensuring the stablecoins are true to the fiat currency they are pegged to.
LUNA validators operate Terra blockchain gaining fees from transactions. Staking is a process whereby LUNA holders delegate their coins to a validator and, in exchange, get a share from the validator’s revenue. It’s one of the yield-farming options available in the Terra ecosystem.
You can handle Terra (LUNA) coins with its native Terra Station Wallet, including with Ledger hardware wallet. This guide will walk you through another option and show you how to buy and stake LUNA with Trust Wallet.
Create Trust Wallet
Unlike the original Terra Station Wallet, Trust Wallet can process various crypto-currencies, including LUNA. Meanwhile, the app does not charge any fees for its downloading and use. Its elaborate, intuitive, and informative interface and security attracted over 5 million users.
The application is currently available for iOS and Android.
Step 1: Download and install Trust Wallet
Open the Trust Wallet download page and pick up the app that matches your OS.
Step 2: Create a wallet
Once the installation completes, click CREATE A NEW WALLET or, if you already have a wallet and wish to use it, click I already have a wallet.
Step 3: Enter and re-enter your password
Remember it well. Otherwise, you might be unable to sign in.
Step 4: Memorize and enter your recovery phrase
Trust Wallet will show you your Recovery Phrase. For security reasons, keep it written on a piece of paper rather than copying it into a digital carrier.
That’s it! If you wish, you can enable push notifications for incoming and outgoing transactions.
Get LUNA coins
Step 1: Enable LUNA in Trust Wallet
First off, you need to add Terra blockchain to your Wallet main menu.
For this purpose, tap the search icon as indicated with the red arrow.
Use the search bar to find LUNA. Enable it by sliding the toggle.
You have added Terra to the Trust Wallet main menu.
Step 2: Acquire LUNA with Trust Wallet
Now, let’s get some coins. The minimum amount to stake is 0.01 LUNA. However, you would need to have a bit more to cover transaction fees.
You can either receive or buy LUNA. Click Terra on the list and see your options.
Receive option in the middle menu enables setting a specific amount to get and provides a QR-code to share.
You can copy your wallet address by clicking Copy in the menu. Share it with somebody who would like to send some LUNA to you.
No memo is required for sending LUNA. The address receives LUNA only. Do not send other coins as they will be rejected and may be lost in the transactions.
Buy menu allows you to convert fiat money into LUNA coins.
You will need to enter your valid card details.
Step 1: Select Terra (LUNA) in the list
Step 2: Click More
Have patience, it might take a while.
Step 4: Check out Stake Details and click Stake
Once staked, LUNA coins remain bonded. The unbonding starts immediately once you choose Unstake. The lock time is three weeks, that is how long the undelagation (aka unstaking, unbonding) takes.
Step 5: Choose a validator.
Step 6: Set the amount to delegate.
Staking is available with as little as 0.01 LUNA. However, keep some LUNA coins on your account (unstaked) to cover service fees. That is, do not choose MAX.
Step 7. That’s it!
Your staking rewards are pending.
How to undelegate (unstake, unbond) your LUNA coins?
You can always initiate the unbonding process.
Step 1: Click the Terra blockchain in the Trust Wallet main menu.
Step 2: Set the amount to undelegate
Step 3: Click Unstake LUNA
Step 4: Check the amount to be at your full disposal within 3 weeks.
Good to know
What is LUNA staking?
LUNA staking enables LUNA coin holders to delegate their coins to a validator. The validators earn rewards for serving transactions, proposing and approving new blocks, burning excessive coins, etc. They implement the Terra ecosystem designs and continuously maintain its operations.
The validators use coins delegated to them to raise their stake in the above activities and earn more profits. You as a delegator enjoy a share in your validator’s income. The statistics indicate a 10% average annual staking reward.
Why LUNA staking is worth trying?
Terra ecosystem is unique even among stablecoins. That is, genuinely. And it’s the sheer beauty of the idea, design, and implementation.
The idea is to make a stable coin that ensures its stability to fiat currency on its own. Once again, on its own, without any inflow of fiat currencies.
The design provides for a set of stablecoins linked (TerraUSD (UST), TerraCNY, TerraJPY, TerraGBP, TerraKRW, TerraEUR) to floating LUNA coin, which is also a part of Terra, a cornerstone and governing power of it.
If Terra stablecoin price goes low, its excessive amount gets burned. For example, if UST is traded for 0.99$, the algorithm stimulates UST burning until its price reaches 1$. The burned UST does not disappear, its energy converts into LUNA. This burning algorithm works both ways. Watch this video to learn more.
This Terra-LUNA interaction so far ensures the incredible stability of Terra stablecoins. Their average prices do not deviate significantly from the currencies they are pegged to.
The implementation introduces the Terra validators that maintain the decentralized algorithm of the Terra blockchain. If you buy LUNA, you can stake them to a validator like Everstake to get a share from the validator’s profits. These are not limited to burning margin as the validators also earn from serving transactions, proposing and approving new blocks, etc.
What is Everstake?
Everstake is a top provider of staking-as-service and a maintainer of multiple blockchains. It is a trusted validator to many promising projects, including Terra. You can delegate your LUNA tokens to Everstake using Terra Station Wallet.
Subscribe to the Everstake channels to follow the latest updates and insights in the world of cryptocurrencies!