Terra’s “liquidity bootstrapping pools” were meant to prevent DeFi protocol token pump and dumps at launch but the model is not as effective as expected.
New protocols are launching everyday on different networks in the crypto space and the trend is likely to continue through this year. When looking at the top 5 networks by total value locked (TVL) — Ethereum, Terra, Binance Smart Chain (BSC), Avalanche and Solana, according to data from DeFiLlama, Ethereum have 579 protocols (including L1 and L2); Terra has 25, BSC has 348, Avalanche and Solana have 187 and 64 protocols respectively. The low number of protocols and high TVL from Terra surely stands out as the outlier here.Terra’s TVL reached an all time high at $20 billion December 2021 before dropping to $13 billion during the January 2022 crash. To date, the ecosystem managed to boost its liquidity back to $26 billion. With only 25 protocols built on the cha
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