Terra Luna 2.0 perpetual contracts are now available for traders seeking exposure to the restructured Terra ecosystem. These contracts allow users to trade using both XBT and USDT margin options with competitive leverage levels.
This guide covers essential information regarding contract specifications, underlying assets, and the background of Terra’s relaunch.
Understanding Terra Luna 2.0 Contract Offerings
Two new perpetual contracts are now live: LUNAUSD and LUNAUSDT. These instruments enable traders to speculate on the price of Luna 2.0 without holding the underlying asset.
Both contracts started trading on June 2, 2022, at 04:00 UTC.
LUNAUSD Inverse Perpetual Swap (XBT Margin)
The LUNAUSD contract is an inverse perpetual swap, margined in Bitcoin (XBT). This means profits and losses are calculated in XBT based on LUNA’s USD price movements.
Key features of the LUNAUSD contract:
- Symbol: LUNAUSD
- Margin Currency: XBT
- Bitcoin Multiplier: 0.0001 XBT
- Contract Value: LUNAUSD price × Bitcoin multiplier
- Underlying Index: .BLUNA
- Maximum Leverage: 25x
- Maker Fee: -0.01%
- Taker Fee: 0.075%
- Initial Margin: 4.00%
- Maintenance Margin: 2.00%
This structure allows traders to go long or short on LUNA’s USD price using Bitcoin as collateral.
LUNAUSDT Linear Perpetual Swap (USDT Margin)
The LUNAUSDT contract is a linear perpetual swap, margined in USDT. This product is ideal for traders who prefer stablecoin-based margining.
Key features of the LUNAUSDT contract:
- Symbol: LUNAUSDT
- Margin Currency: USDT
- Contract Size: 0.001 LUNA
- Quantity per Contract: 1000
- Minimum Trade Amount: 1 contract
- Underlying Index: .BLUNAT
- Maximum Leverage: 20x
- Maker Fee: -0.01%
- Taker Fee: 0.075%
- Initial Margin: 5.00%
- Maintenance Margin: 2.50%
Linear contracts simplify profit and loss calculation since they are directly quoted in USDT.
Background: The Terra Relaunch and Luna 2.0
Following the collapse of the original Terra ecosystem, CEO Do Kwon proposed a revival plan. This initiative aimed to create a new Terra blockchain without an algorithmic stablecoin.
The original chain was renamed Terra Classic (LUNC), while the new chain introduced Luna 2.0 (LUNA) as its native token. Governance Proposal 1623 passed on May 25, 2022, approving the new chain.
Luna 2.0 launched on May 28, 2022, with an airdrop distributed to LUNC holders and affected users:
- 30% to the Community Pool
- 35% to pre-attack LUNA holders
- 10% to pre-attack aUST holders
- 10% to post-attack LUNA holders
- 15% to post-attack UST holders
This distribution aimed to fairly compensate investors affected by the depeg event.
Frequently Asked Questions
What is the difference between LUNAUSD and LUNAUSDT contracts?
LUNAUSD is an inverse contract margined in Bitcoin (XBT), while LUNAUSDT is a linear contract margined in USDT. Inverse contracts are settled in XBT, whereas linear contracts use USDT for margin and settlement.
What leverage is available for Luna 2.0 contracts?
The LUNAUSD contract offers up to 25x leverage, while the LUNAUSDT contract offers up to 20x leverage. Always use leverage cautiously and understand the risks involved.
How is the settlement price determined for these contracts?
Both contracts use their respective underlying indices (.BLUNA for LUNAUSD and .BLUNAT for LUNAUSDT) for mark price calculation and settlement.
Can I trade these contracts outside of trading hours?
Perpetual contracts trade 24/7, allowing continuous access to Luna 2.0 markets without interruptions.
What happened to the original Luna (LUNC) token?
The original Luna token was renamed Terra Classic (LUNC) and continues to exist on the original blockchain. Luna 2.0 (LUNA) is the native asset of the new Terra chain.
Where can I learn more about advanced trading strategies?
👉 Explore advanced perpetual trading strategies
Conclusion
The introduction of Terra Luna 2.0 perpetual contracts offers traders new avenues to engage with the restructured Terra ecosystem. With both inverse and linear contract types available, participants can choose the product that best aligns with their trading style and risk management approach.
As with any leveraged derivative, it is essential to understand the contract specifications, fees, and margining system before trading. 👉 View real-time trading tools