Terra Projects Begin Moving to Polygon 2 Months After UST Debacle

Over $20 million had been earmarked to help projects that are migrating.

AccessTimeIconJul 11, 2022 at 9:54 a.m. UTC
Updated May 11, 2023 at 5:40 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

More than 48 projects previously on the Terra network have begun migrating to Polygon almost two months after the Terra network collapsed following the implosion of terraUSD (UST).

“Terra projects have begun migration,” Polygon Studios CEO Ryan Wyatt said in a tweet early Monday. “Over 48 projects and counting… including OnePlanet_NFT, an exclusive 0xPolygon marketplace and DerbyStars_HQ.”

In May, Polygon Studios announced a multimillion-dollar fund to assist Terra projects looking to switch. It was ready to pay as much as $20 million to help Terra teams migrate to Polygon's own blockchain to continue building products.

“For any project which wants to come from Terra to Polygon, we will be happy to provide them both financial assistance as well as technical assistance,” a spokesperson for Polygon told CoinDesk at the time. “We’ll provide them developers and everything.”

Developers behind other blockchain networks also courted Terra projects, among them Kadena, Cosmos and Avalanche, as previously reported.

UST, the Terra network’s algorithmic stablecoin that was designed to maintain its value by minting or burning exactly $1 worth of luna for 1 UST, fell to under 10 cents in May after losing its peg following investor outflows.

Excessive minting of luna to try to bring UST back to its peg caused prices of the governance token to fall by as much as 99.7%, while Terra-based decentralized finance (DeFi) applications saw over $28 billion in outflows.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about