Raj Gokal, COO of Solana, announced the news in Medium post today, April 16. According to the announcement, both companies are building a new high-speed token bridge that facilitates the transfer of Terra stablecoins into Solana’s dapp ecosystem. Terra Money’s native token will be the first stablecoins on the Solana network.
Raj Gokal said that the aim of bringing stablecoins to Solana is to “expand the design space for developers, opening the door to novel applications that require price-stable payments.” This will also support Terra’s expansion by creating a seamless gateway to Solana’s developer community.
To facilitate this token bridge, Solana and Terra Money are building two mirrored smart contracts—contract T and contract S respectively—that leverages a mint-and-burn model. The two smart contracts will be deployed on both platform by May 2020.
The COO of Solana explained:
“Users can mint specific Terra tokens on Solana by calling a burn transaction on contract T and then minting a transaction on contract S by submitting a proof to Solana that the Terra tokens were burned using contract T. This works in both directions, creating a two-way warp.”
Solana, launched in 2019, is the world’s first web-scale blockchain platform that claims to have speed of 50,000 transaction per second (tps) without sharding.
Terra is Blockchain-based payment platform is backed by Korean eCommerce giant TMON. The company’s mobile payment app, CHAI, supports a basket of stablecoins pegged to the world’s largest currencies.
Daniel Hwang, head of Ecosystem development at Terra Money, in a separate blog post said that the app has recently crossed 1 million monthly active users and over $3 Million USD in daily transaction volume. The platform charges only 0.5% in transaction fees compared to the industry standards of 3.5%.
Daniel Hwang said that this low-latency token bridge would help expand the adoption of Terra stablecoins as well as enable the full potential of open finance applications on top of Solana.
“We’re grateful for the support shown by Solana’s team and our community and we’re excited about the new horizons this bridge will facilitate.”
If you found this article interesting, here you can find more Blockchain and cryptocurrency news