Terra presented last Thursday, April 15, through his Twitter account, his second project in Project Spotlight: Loop Finance. According to the company, Loop is a Terraform Capital project that offers a dual product, an AMM DEX and a non-custodial crypto wallet, for the Terra ecosystem and beyond, optimized for mass adoption.
“(…) We are pleased to present another promising project that builds on the Terra network and shares similar ambitions: Loop Finance. Loop is building an AMM DEX on Terra that will be integrated into a beta phase non-custodial crypto wallet (Loop Wallet) built primarily to buy in a way advantageous to small businesses and mainstream consumers”, he said through an article published in the Medium platform.
But what is Loop?
The company explained that when building Loop, its team had two main motivations:
• Helps bring cryptocurrencies to the masses
• Help small businesses survive in today’s software-driven world, where platforms like Ubereats, Amazon, and Facebook are rapidly consuming their profit margins.
So, Loop can be defined as a Terraform Capital project that offers a dual product to the Terra ecosystem and beyond.
“First Loop Markets is an AMM DEX built on Terra that implements the Automated Market Maker (AMM) model of pooled lazy capital to allow passive income for liquidity providers (LPs) and quick swaps on a spectrum of Terra assets (for example, MIR, ANC, UST, etc.) for merchants”, he added.
In addition, he indicated that Loop Wallet is a non-custodial mobile wallet for purchases and commercial payments that will integrate Loop AMM, obtaining liquidity for payments through native swaps of Terra assets and Loop DEX stablecoins.
According to the company, Loop will include ERC-20 and SPL (Solana) tokens along with native Terra assets once the Wormhole Solana-ETH POA bridge officially goes live.
Using the governance token LOOP, which also accumulates shared trading fees, token pools that currently do not exist on Terra will be incentivized with POOL token rewards to help boost liquidity, including ETH, WBTC, UNI, SUSHI, LINK, BNB, CAKE, SOL, SRM, FTT and more”, he indicated.
Terra clarified that Loop is more than just an AMM, as Loop will be “actually a shopping app, where people can make purchases at local businesses (in-store, pickup, or delivery through Loop’s partnership with Doordash), as well as international companies through postal delivery”.
The company commented that the application is currently in beta testing phase; however, Loop will add many new merchants in the coming months.
“Our plan from the beginning has been to create a non-custodial crypto wallet in the app, allowing users to spend their cryptocurrencies directly with merchants”, said Tom Norwood, CEO of Loop.