ALTERED: Terra's Elastic Token
The LoTerra team on Terra (Luna) Network is driving some pretty impressive projects that in my opinion aren't receiving enough promotion or acknowledgement. They appear to be running under the radar the issue with this is that they are successful projects.
I first introduced you to their lotto which can be found on my previous post LoTerra: Decentralised Lotto and I highlighted the differences and advancements in this project. It is really simple, straight forward, open and transparent. You buy tickets in UST and winnings are paid in UST.
I then learned that the same project team were once again putting their minds to the Blockchain and have developed one of the best decentralised NFT marketplaces on any blockchain in my article called Curio The Decentralised Market Place on Terra.
But a project I haven't introduced you too yet is a relatively new concept in blockchain technology called Altered which is an elastic token.
What is an Elastic Token?
Decentralised Finance (De-Fi) has many facets and have undergone significant transformation over the limited years it has been in operation with more common popular tokens utilising reflection as a means to enable people to earn without staking or validating networks.
But another form of De-Fi which is still relatively unknown is the elastic token in which it attempts to mitigate price volatility by rebasing. In short in stead of the token price changing the amount of tokens you hold change so that you maintain the value.
A good example and explainer I found online was a description on Binance Academy Elastic Supply Tokens Explained.
Alte
Altered brings a new synthetic commodity money to Terra Network in a similar way to AMPL and can expand or retract every 24 hours to maintain a set price. The token itself is non-dilutive but it is important to note the protocol does have a DAO and the ability for people to dispute price.
Alte aims to remain pegged to 1 US dollar or at least within 5% of 1 US Dollar through its rebasing mechanism which means when the peg goes over $US1 the supply will expand and because it is non-dilutive it means you will get more ALTE tokens so the value you hold remains the same. The same will occur if the token price falls below you will have less tokens but the value will remain the same.
Where is ALTE at?
Currently ALTE is 95% of the way to its goal of $US1 and has been doing so for some time and will continue to. Currently sitting at $US0.84c with a circulating supply of 402,631 with the next upgrade taking the token to $US0.85 by reducing the total supply to 396k.
You might be thinking what benefit would the token be? well if successful it will be another stable token on Terra Network noting that it does aim to be within 5% of $US1 so there are some really good arbitration possibilities in the future. But why wait til then when you can do an arb right now?
LoTerra Lotto
Because ALTE is created by the LoTerra team it is currently accepted on the LoTerra Lotto in two ways. One by burning it which will reduce your UST cost per ticket or by buying tickets with ALTE. If you're already buying tickets with UST it is currently $US0.15c cheaper to do so using ALTE and each one ALTE will still give you ONE ticket as 1 UST does.
If you do manage to win more than your ticket cost than you also receive more ALTE as well as UST which could become quite profitable. If you utilise this method and win because you can now pick up an extra ticket for every 7 tickets you buy with ALTE compared to UST don't forget to send me a prize!
I am excited to see how ALTE turns out and if in fact it is able to maintain its peg which will create a new and exciting opportunity for blockchain investors.
Image sources from ALTERED supplemented by Canva Pro. Information sourced from Altered Docs. This is not financial advice and readers are advised to undertake their own research or seek professional financial services