Wormhole, a communication bridge between Solana and other top decentralized finance (DeFi) networks, has added user interface support for the Terra network. The move allows users to port digital assets between the Binance Smart Chain, Ethereum, Solana and Terra networks with a single unified interface without the need to “double wrap” Terra tokens. Like stablecoins […]
Wormhole, a communication bridge between Solana and other top decentralized finance (DeFi) networks, has added user interface support for the Terra network.
The move allows users to port digital assets between the Binance Smart Chain, Ethereum, Solana and Terra networks with a single unified interface without the need to “double wrap” Terra tokens.
Like stablecoins whose values are pegged to fiat currencies or particular commodities, wrapped tokens fulfill a similar function by representing real-world assets on networks they aren’t native to. “Wrapping” refers to storing particular digital assets in a wrapper or digital vault so that they may function on one blockchain even if they were issued on a different blockchain.
In order to allow assets to exchange value across multiple chains, tokens often need to be double wrapped – which can prove costly and time-consuming.
“By allowing value to flow freely throughout decentralized networks, Wormhole is opening the door for use cases that were previously unattainable,” Hendrik Hofstadt, director of special projects – crypto at Jump Trading, said in a press release on Tuesday.
“Now, cross-chain governance, liquid staking tokens, oracle data being passed over multiple chains and the ability to avoid double wrapping tokens are all within a user’s reach,” Hofstadt said,
Wormhole’s interoperability protocol enables crypto assets like tokens and non-fungible tokens (NFTs), and even price data, to flow between blockchain networks that don’t usually talk to each other. When it was launched, the protocol supported the Binance Smart Chain, Ethereum and Terra.
Previously, Terra’s stablecoin, UST, and Luna, the native crypto powering Terra’s ecosystem, passed through Wormhole V1, but upon reaching the Solana network, they became double wrapped.
The addition of Terra support to Wormhole’s already existing Ethereum-Solana-BSC token bridge means the four largest DeFi blockchains by total value locked, or the amount invested in a DeFi platform, can now “flow freely,” according to the press release.
The support comes on the heels of Terra’s recent Colombus-5 upgrade which enabled the network to function more seamlessly with other crypto ecosystems.
1/ The @wormholecrypto support for Terra in the V2 UI is live!
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) October 19, 2021
Terra also said it will be shuttering its Ethereum bridge, Shuttle, and drive liquidity toward Wormhole, which already has $350 million in total value locked, according to the protocol’s own data.