As Terra Dies and Forks, Protocols and Projects Move to Polygon
Forget Terra 2.0—Polygon wants Terra projects to move to its blockchain instead.
Polygon Studios CEO Ryan Wyatt shared via Twitter yesterday that Polygon—a sidechain built to compliment and help scale Ethereum—is launching a “multi-million dollar fund” called the Terra Developer Fund to help Terra projects move from Do Kwon’s now-infamous and failed blockchain onto Polygon.
Two and a half weeks ago, the Terra blockchain’s stablecoin, UST, lost its peg to the dollar after large withdrawals were made from Anchor, a Terra DeFi platform that promised up to 20% returns from staking. The Luna Foundation Guard, a group founded by Kwon to help support the Terra ecosystem, deployed billions from its Bitcoin reserves in an attempt to maintain UST’s peg.
But the not-so-stable coin was unable to regain its peg, and its sister token LUNA token then fell from $64 to $0.004 in a matter of days. The Terra blockchain was even temporarily halted, but that didn’t stop the prices of UST and LUNA from going to zero.
We have put together a multi-million dollar fund to provide relief to Terra developers to help them stay on their feet and migrate.
— Ryan Wyatt (@Fwiz) May 25, 2022
Wyatt announced yesterday that the Terra NFT marketplace OnePlanet would be the first project to make the migration, and OnePlanet will help Polygon migrate more Terra projects. Specifically, Terra NFT projects can apply to join OnePlanet’s move to the new blockchain.
The news comes about a week and a half after Wyatt shared that Polygon was watching the Terra collapse and is “working closely with a variety of Terra projects to help them migrate over swiftly.”
The Polygon team is currently reviewing grant applications from interested Terra projects and is having active conversations with a number of Terra DeFi protocols, Wyatt told Decrypt via DM.
Over 50 Terra projects have already reached out to Polygon, TechCrunch reported.
“The advantages that we offer that are unique to Terra is that Polygon has a world-class team made up of executives across Google, Amazon, Mythical Games, Riot Games, EA, Activision, Unity, and more, so games and NFT projects have great resources available to them from the internal team we offer,” Wyatt told Decrypt.
While many Terra projects may be abandoning ship instead of sailing along with Kwon toward the upcoming Terra fork, the new Terra chain is making moves of its own. Kwon today shared news of the new Soil Protocol, which will facilitate NFT project deployment on the upcoming Terra 2.0 blockchain.