The collapse of Terra Luna wiped off $60 billion from the cryptocurrency market. Fast forward, platforms like Mars Protocol reignited while others like the Pylon protocol dwindled.
Mars was one of Terra Luna’s major lenders. Below is a snapshot of Terra’s decentralized finance (DeFi) applications shortly after the ecosystem’s implosion in May 2022. The Anchor protocol, the largest lender, lost over $16 billion in a week.
The lending app Mars Protocol and the Astroport exchange saw a combined $1.2 billion decline in total value locked.
Mars protocol recovery plan
Mars Protocol’s new plan entails a new independent Cosmos app chain that will go live on January 31. Its new functionality will facilitate lending and borrowing on the Cosmos ecosystem for an array of other blockchains.
The mainnet is the last phase of launch after Alpha which ended in November and the Ares test version which is ongoing.
Cosmos is an ecosystem that secures and powers blockchain interoperability and scalability, its native token is ATOM.
The chain is scheduled to launch with 16 genesis validators and 34 more after launch maintaining the cap at 50.
The mission is straightforward: to build a full-stack DeFi product experience that looks and feels like CeFi while preserving the benefits of decentralization: non-custodial, transparent, trustless, resilient.
The Alpha version tested and approved the MARS (native token) claim process, staking, borrowing, and lending on the Osmosis testnet.
To make the community whole, the protocol will avail 64.6 million MARS tokens after the launch day that will be claimable by users who held the token on the two Terra classic snapshots i.e, before (Block 7544910) and after (Block 7816580) Terra collapse. The same snapshots were used to compensate Terra holders with the new Terra Luna token.
Eligible users can claim the airdrop on Station, Terra’s revamped interchain wallet.
To check eligibility, change your Station wallet network to Testnet then check for incoming Mars airdrop on the Mars hub.
What next for the Mars protocol
“From the red dust of Mars, a new hope rises with the upcoming launch of Mars Hub,” the first outpost will be Osmosis in February, on which users will use Mars to borrow and lend tokens.
Later governance proposals by the community will help activate leveraged borrowing, which is essential for yield farms, and onboard more outposts.
Osmosis is the top decentralized exchange (DEX) on Cosmos.
All governance proposals and discussions will happen on Mars Forum on which the community can pitch in their ideas.
Market outlook
Despite almost complete losses from its all-time high, Terra Luna Classic still maintains a substantial market value. According to Coinmarketcap, the coin is at position 47 with a higher market value than FTM, THETA, XTZ, and TUSD with listings on top-tier exchanges.
Terra classic maintains an active community and developers who have made substantial efforts in burning excess tokens.
The new Terra ranks much lower at 112, with a market capitalization of $290,384,500.
Anchor protocol (ANC) slid to position 634 and AstroPort (ASTRO) slid below the 3,000 mark.
MARS token suffered great losses after the collapse and Terra Luna and was subsequently delisted on Binance and Coinbase. The success of the token is highly dependent on the platform’s ability to move on from its tainted past and convince new investors.
The early 2023 bull market and upcoming governance proposals may offer MARS a much-needed early boost.
Source: https://www.cryptopolitan.com/terra-lunas-mars-protocol-to-launch-mainnet/