1./ $LUNA is one of the best yielding assets. I honestly don't care about the price. I take profit from the yield I make. Not from selling $LUNA. Partially compounding, partially cashing. $LUNA is my life time passive income.
A thread on how to make $LUNA yield 🧵
2./ In the past year many protocols launched on @terra_money. For almost all projects $LUNA and $UST are the most important assets and especially for $LUNA many of them made a derivative. We have $nLUNA, $bLUNA, $LUNAx and so on... I'll try to cover all of them one by one.
3./ First: $bLUNA
$bLUNA was the first $LUNA use case and still is very popular. Bond your $LUNA, receive $bLUNA use it as collateral and borrow $UST. With this $UST you can do whatever you want. All of this is made possible by @anchor_protocol
4./ So now you have $UST in your wallet which you can use to make yield. However, you should be careful. Once the $LUNA price goes down, so does the value of your collateral. If you didn't manage your LTV well, you might get liquidated and lose (part of) your collateral.
5./ Hello @NexusProtocol and $nLUNA!
If you don't want to manage your LTV yourself, @NexusProtocol might be exactly what you're looking for. Bond your $LUNA on @anchor_protocol, receive $bLUNA, deposit your $bLUNA on @NexusProtocol and let them to the work.
6./ @NexusProtocol automatically manage the TVL and prevents you from being liquidated. The only thing you'll give up is the free choice to do whatever you want with your $UST.
7./ @NexusProtocol deposits the borrowed $UST in Anchor Earn to make sure they can act quickly when price is moving fast.
Currently depositing your $bLUNA in @NexusProtocol gives you an #APR of 11.5%
8./ Once you do this, you'll receive $nLUNA which you pool with @NexusProtocol's token $PSI. This will give you an additional #APR of 97% at the moment.
9./ Providing liquidity is another interesting option to make your $LUNA yield. An important note here is that you should be aware of what impermanent loss is. If you don't know this yet, there is a lot of info available on this subject.
10./ There are many places to provide liquidity and then there are many pairs you can choose from. For this thread I'll focus on the pairs with two kinds of $LUNA and the $LUNA / $UST pairs.
11./ The DEXs I'll cover are @loop_finance, @astroport_fi and @terraswap_io.
12./ First @loop_finance
$LUNA / $UST: 62.59%
$LUNA / $aUST: 57.29%
$LUNA / $bLUNA: 4.41%
$LUNA / $LUNAx: 15.93%
13./ Second @astroport_fi:
$LUNA / $UST: 49.45%
$LUNA / $bLUNA: 11.21%
$LUNA / $stLUNA: 18.75%
14./ Third @terraswap_io:
$LUNA / $UST: 48.39%
$LUNA / $bLUNA: 9.64%
$LUNA / $LUNAx: 1.10%
$LUNA / $cLUNA: 13.43%
15./ @terraswap_io (2):
$LUNAx / $bLUNA: 8.70%
$bLUNA / $UST: 30.00%
$LUNAx / $UST: 20.02%
16./ But there is more... What about staking?
You can choose to stake your $LUNA in #Terrastation, but I prefer to use @staderlabs. They give you several different options to stake.
17./ The best thing they do in my opinion is auto compounding so you don't have to take care of your rewards yourself. Saves you a lot of time and transaction costs.
18./ Next to that, you can choose for a validator pool that contributes most to the community, a validator pool with the best performing validators or a validator pool with the best #Airdrops. Average #APR is around 8.70%
19./ Another thing you can do at @staderlabs is liquid staking. Stake your $LUNA and receive $LUNAx. By doing this you receive rewards on your staked $LUNA but you can use your $LUNAx at the same time as collateral on @mirror_protocol or to provide liquidity.
20./ Because of this capital efficiency you are earning even more rewards. Currently, because their $SD token farming event is going on you can farm $SD tokens by providing $LUNA / $LUNAx liquidity which can give you great returns when their token goes live.
21./ Last thing I want to tell you guys about is @prism_protocol. In my opinion, @prism_protocol is something for the experiences #Defi degens, but there is an almost no-risk strategy to gain a very interesting #APR at the moment.
22./ Currently the #PRISM farm is ongoing. You can earn $PRISM tokens by staking your $yLUNA. How do you do this?
23./ At @prism_protocol you can split your $LUNA into $yLUNA and $pLUNA. If you want to have your $LUNA back, you'll just have to merge your $yLUNA and $pLUNA. Nothing too complicated.
24./ To participate in the @prism_protocol farm, you'll just have to stake your $yLUNA which will give you an #APR of 43.57%.
Note; because this is the #APR over your $yLUNA the net #APR for your $LUNA is a bit lower, but still very interesting.
25./ If you'll just keep your $pLUNA in your wallet, you can always unstake your $yLUNA and get your $LUNA back. No risk involved of losing anything.
26./ So that's how I make my $LUNA yield. I probably forgot a lot of strategies. There are also probably a lot of strategies I am not even aware of.
What I wanted to make clear; I don't think selling $LUNA is needed to generate profit. This is how I do it.
27./ Always #DYOR first before using a strategy.
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