Terra-based Projects Begin migrating to Polygon 2 Months After UST Crash
Projects previously running on the fallen Terra blockchain have collaborated to help each other migrate to the Polygon Layer 2 network.
Polygon Studios CEO Ryan Wyatt expressed delight at his network’s ability to onboard many projects to the ecosystem in a Saturday tweet. He hinted that Polygon’s multimillion-dollar Terra Developer Fund has been effective in attracting the talent that was unexpectedly flung into limbo when Terra collapsed in May.
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 stated. “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.
The Terra ecosystem suffered a monumental collapse in May when its TerraUSD Classic (USTC) stablecoin lost its peg, forcing its native token Luna Classic (LUNC) to crash nearly 100% in value from over $60 to fractions of a cent. The network has been renamed Terra Classic, and its native token now has the LUNC ticker, while a new iteration has adopted the Terra name and LUNA ticker.
It has yet to gain much traction or confidence as the crypto bear market deepens.
Excessive minting of luna in an attempt to repeg UST caused prices of the governance token to drop by as much as 99.7%, while Terra-based decentralized finance (DeFi) applications saw outflows of more than $28 billion.