Thread by @B49Jme

Let's take a look at one of my favourite upcoming @terra_money projects. @Levana_protocol 🧵

The Levana protocol is designed to create leveraged products. As we all know, leverage is a very popular tool in crypto. Levana aims to create leveraged products for any asset

Levana creates these products through the use of a "Leverage Capsule". Which works as follows:

LUNA is deposited into @mars_protocol for maLUNA
maLUNA is used as collateral to borrow UST and buy LUNA
Process is repeated until desired leverage is reached

To prevent liquidations, the "Leverage Capsule" automatically rebalances the pools to prevent any liquidations. This allows users to take on leveraged positions without needing to continually maintain their position. Also, transaction costs are shared between users in the pool.

The first product @Levana_protocol will create will be the LUNA2x token. Given the bullishness, I am seeing from the #LUNAtics about the upcoming months, I think this product will have an immediate product-market fit within the $LUNA community (as will @Levana_protocol)

Wen launch?
@Levana_protocol actually has one of the most unique and interesting protocol launches I have ever seen in DeFi. They are launching through a "Meteor Shower", which will take place sometime in October. Sign up here for when it's live levana.finance/meteors

Users contribute UST to the “Meteor Shower”. The higher the UST contribution, the higher the chance that you will receive a meteor with a dragon egg. The meteor shower will last 44 hours, with 202 dragon eggs being available per hour (8888 in total).

The chances of receiving a dragon egg are dependent on the number of participants in each hour slot. Users who commit more UST will have a better chance of getting a dragon egg. However, they also risk not getting any. Here is an example distribution for a 1000 participant hour

This adds an element of game theory which is super interesting. Do you allocate equally over 44 hours and give yourself 44 chances of getting one (at a reduced %). Or do you ape hard for one hour and give yourself a high chance of getting one. What's your strategy?

Users who receive dragon eggs will be identified by the Levana DAO as core members and earn rewards. Dragon eggs can be used to boost leverage on farming rewards. Staking your dragon egg and farming allows your dragon egg to eventually hatch into a dragon

Dragons will receive additional utility in the future.

After the meteor shower, Levana meteors will be able to be traded, cracked, or held. Meteors that don’t contain an egg will receive Meteor dust which supposedly has a future purpose.

@Levana_protocol also has many other products in their plans such as Perps (which we have seen with $DYDX and $PERP to be a huge opp in DeFi) as well as other trading strategies. The TAM for @Levana_protocol is immense, especially with the rapidly growing $LUNA ecosystem.

In summary, @Levana_protocol satisfies a clear and established need for #TeFi in leveraged trading. Moreover, their super unique NFT launch makes it a protocol to definitely pay attention to amongst a rapidly growing $LUNA ecosystem. I will definitely be making sure I get an #egg