Wormhole Adds User Interface Support for Terra’s Network

The move allows users to port digital assets between multiple blockchains without “double wrapping” Terra tokens.

Oct 20, 2021 at 12:45 a.m. UTC
Updated Oct 20, 2021 at 7:28 p.m. UTC

Sebastian Sinclair is a CoinDesk news reporter based in Australia.

Wormhole, a communication bridge between Solana and other top decentralized finance (DeFi) networks, has added user interface support for the Terra network.

The move allows users to port digital assets between the Binance Smart Chain, Ethereum, Solana and Terra networks with a single unified interface without the need to “double wrap” Terra tokens.

Like stablecoins whose values are pegged to fiat currencies or particular commodities, wrapped tokens fulfill a similar function by representing real-world assets on networks they aren’t native to. “Wrapping” refers to storing particular digital assets in a wrapper or digital vault so that they may function on one blockchain even if they were issued on a different blockchain.

In order to allow assets to exchange value across multiple chains, tokens often need to be double wrapped – which can prove costly and time-consuming.

“By allowing value to flow freely throughout decentralized networks, Wormhole is opening the door for use cases that were previously unattainable,” Hendrik Hofstadt, director of special projects - crypto at Jump Trading, said in a press release on Tuesday.

“Now, cross-chain governance, liquid staking tokens, oracle data being passed over multiple chains and the ability to avoid double wrapping tokens are all within a user’s reach,” Hofstadt said,

Wormhole’s interoperability protocol enables crypto assets like tokens and non-fungible tokens (NFTs), and even price data, to flow between blockchain networks that don’t usually talk to each other. When it was launched, the protocol supported the Binance Smart Chain, Ethereum and Terra.

Previously, Terra’s stablecoin, UST, and Luna, the native crypto powering Terra’s ecosystem, passed through Wormhole V1, but upon reaching the Solana network, they became double wrapped.

The addition of Terra support to Wormhole’s already existing Ethereum-Solana-BSC token bridge means the four largest DeFi blockchains by total value locked, or the amount invested in a DeFi platform, can now “flow freely,” according to the press release.

The support comes on the heels of Terra’s recent Colombus-5 upgrade which enabled the network to function more seamlessly with other crypto ecosystems.

Terra also said it will be shuttering its Ethereum bridge, Shuttle, and drive liquidity toward Wormhole, which already has $350 million in total value locked, according to the protocol’s own data.


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Sebastian Sinclair is a CoinDesk news reporter based in Australia.

CoinDesk - Unknown

Sebastian Sinclair is a CoinDesk news reporter based in Australia.

Trending

1
CoinDesk - Unknown
What We Know So Far About SHIB: The Metaverse

The meme coin continues to expand its utility with its latest move into the metaverse.

The meme coin continues to expand its utility with its latest move into the metaverse.

CoinDesk - Unknown
2
CoinDesk - Unknown
Bitcoin Is Apolitical, but Won't Be Much Longer

Practically speaking, everything is eaten by the culture war.

Practically speaking, everything is eaten by the culture war.

CoinDesk - Unknown
3
CoinDesk - Unknown
Exploring the Star Atlas Metaverse

A review on the space-themed, multiplayer gaming metaverse based on the Solana blockchain.

A review on the space-themed, multiplayer gaming metaverse based on the Solana blockchain.

CoinDesk - Unknown
4
CoinDesk - Unknown
Argentinian Crypto Exchange Buenbit Cuts 45% of Staff Due to Tech Industry Downturn

The company will focus on its current operations in Argentina, Mexico and Peru, and freeze previous plans to expand into other countries.

The company will focus on its current operations in Argentina, Mexico and Peru, and freeze previous plans to expand into other countries.

CoinDesk - Unknown