Loop Finance- an AMM DEX for the Terra blockchain and beyond…

4 min readJun 16, 2021

made by Fynn. Link to my Twitter

What are the problems?

  • There are NO incentivized liquidity pools on Terra except for mAssets.
  • New projects building on Terra are unable to create incentivized liquidity pools with their own tokens.
  • Currently, Ethereum or Solana assets cannot be traded on Terra.
  • Swapping directly from BTC, LTC, BNB, etc. to Terra assets is not currently possible on a DEX.
  • Thorchain synthetic assets are not currently tradable on Terra.
  • Current Terra mobile apps are limited and don't provide a great user experience.

What are the solutions?

Loop is an AMM DEX built on the Terra blockchain.

Loop will be listing many native Terra assets, existing and new, as well as Solana and Ethereum tokens using the Wormhole bridge.

Through a Thorchain integration, Loop will be allowing swaps between chains such as BTC, LTC, BNB, etc. as well as Thorchain synthetic assets.

Loop will be creating incentivized liquidity pools as well as “community pools” that will allow other projects to incentivize their own liquidity pools with their own tokens, bringing a lot of liquidity to the protocol.

Web and Mobile Interfaces

Apart from a standard web interface, Loop will also be building a mobile app that will connect with the DEX, providing a convenient way for users to swap between any tokens anywhere. The same app will also allow users to easily access Anchor savings, providing the first mobile interface for this protocol.

The Vision

  • To create a leading multi-chain DEX
  • To become the core hub for UST transactions across the crypto ecosystem
  • To create a world-class non-custodial multi-chain wallet with Swaps (through their DEX and Thorchain), access to great Terra DeFi products (Anchor, Mirror, etc.), a fiat on and off ramp (through a 3rd party), and Collectibles (upcoming Terra NFTs)
  • To become one of the leading developers of new products on the Terra blockchain

Why Terra?

Growth of UST and other stable coins

Terra stablecoins are decentralized, algorithmic stablecoins whose market cap has been growing rapidly as the ecosystem evolves

Mirror and other Defi products

Defi protocols such as Mirror and Anchor have been growing rapidly in TVL and liquidity, making Terra one of the next major Defi hubs.

Terra Ecosystem

Many new projects are starting to build on Terra and will be launched in the next few months. Loop are already negotiating partnerships with many of these projects to list their tokens on their DEX and incentivize pools with their own tokens.

Credit: Smart Stake https://twitter.com/SmartStake

Market Opportunity

Growth of DEXs

Monthly DEX volume by project

Competitive Landscape

LOOP runs on Terra and utilizes UST, one of the few non-centralized stablecoins

Competitive Analysis

LOOP is clearly superior to ALL of its competitors

Roadmap for Loop:

Many things coming very soon…

Loop Partnerships:

The list continues to grow…

Loop Tokenomics:

1,000,000,000 (1B) LOOP tokens will be distributed as follows:

Token distribution pie chart

The Loop Token

  • The Loop token will act as the governance token of the Loop DEX.
  • A percentage of every swap fee will be distributed to people who stake LOOP (25%), as well as to liquidity providers (75%).
  • Most of the incentivized pairs on the DEX will include the LOOP token (eg. LOOP/UST).
The LOOP token will be released over 5 years

This overview is for information purposes only.

This overview does not constitute an offer to sell or a solicitation of an offer to buy any security. This overview may include estimates and financial data which have not been verified.

Document Confidentiality Statement:

Any form of reproduction, dissemination, copying, disclosure, modification, distribution, and or publication of this material is strictly prohibited.