Thread by @PanParagraf

@anchor_protocol + tax optimise tip:
Do you want to know how Anchor reached 42M$ total borrow within only 24h? Then welcome to my tutorial. You will find out how to take best of protocol.
Before you proceed please bear in mind this is not a financial advice & please leave❤️
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First you need to create Terra Station Wallet and send there your $LUNA. Binance will take 0.02 LUNA fee for that.
Then go to app.anchorprotocol.com and connect your wallet. Now go to "Bond" option and mint bLUNA using your $LUNA. Choose any validator and click "mint".
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Next go to "Borrow" section -> app.anchorprotocol.com/borrow and provide $bLUNA as collateral. Proceed by clicking "provide". Congrats 👏. You've just provided collateral for your future UST loan.
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Now you can finally borrow some UST. There is a max LTV of 50% and a suggested "SAFE LTV" of 35%. You can choose freely but you need to know the higher LTV% is the higher probability that in case of sigificant Luna move downwards you'll need to increase your collateral.
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Now here's where magic starts. Let's earn some money!
Since you borrowed UST and provided collateral for it you will earn 294,21% APY for it. This is your first source of income. Another one depends only on your imagination. You can do with borrowed UST whatever you want but..
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First option is to stake your borrowed UST on Anchor and earn 20% APY. But what I personally do is swapping half of borrowed $UST on $ANC and provide it to ANC-UST LP and stake it for over 300% APR! Thanks to that I earn additional $ANC which I claim and restake everyday.
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Rewards:
Tax optimalization - in most tax jurisdictions when you borrow against your assests you legally optimize your tax burden as your loan is your tax cost. This strategy is called “The Zuckerberg Tax” and is used by many institutions that borrow against their shares.
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Your borrow rate is 31% (so this is interest you've got to pay off) while your earn rate is around 300%. Of course it will go down over time but still it should stick around 100-150% over next months. You also earn when $ANC and $LUNA price go up. I call it "perpetuum mobile"
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Risks:
If the $LUNA price goes down you will have to increase your collateral. Also the $ANC price may go down which lowers your actual earn rate. But still this risk is limited as great demand for @anchor_protocol makes more UST minted and this leads more LUNA to be burned.
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So basically this is it. I know I skipped the part how exactly I provide ANC-UST LP for 300% APR but I wanted this tutorial to be more syntetic. If you can't do it on your own and you want addiotional tutorial about it please leave ❤️under every post in this thread. Piona👊
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