20 Oct, 31 tweets, 16 min read
What if I told you that it's possible to get 160% APY (yearly interest rate) on a stablecoin?

Let's say you have \$100K.

One year later that would turn into \$260,000 while you do nothing.

A deep dive into how you can do this yourself & how this is bullish for crypto.

Let me present Anchor Protocol which works as a savings bank.

You deposit the stablecoin \$UST.

In return, you get a 19,5% interest rate.

\$1 UST = \$1 USD.

I've explained everything here:

But you wanted 160% APY, didn't you, anon?

2/
When you deposit \$UST on Anchor Protocol, you get aUST.

aUST is a yield-bearing-collateral.

1 aUST = 1.12 \$UST

Back to our numbers.

If you have \$100,000 \$UST and deposit this on @anchor_protocol, you'll get 89,286 aUST back.

So how do you go from 19,5% to 160% APY?

3/
Let me introduce \$MIM (Magic Internet Money) which is another stablecoin.

\$1 MIM = \$1USD.

What's magic about \$MIM is that you can borrow/mint it with aUST.

You have 89,286 aUST and you want to borrow \$MIM for 80% of the aUST.

89,286 aUST x 0,80 = 71,428 \$MIM

4/
With your 71,428 \$MIM you can convert this to \$71,428 \$UST.

Why?

Because 1 \$UST = \$1 MIM

You deposit it back to Anchor Protocol and you now have your original \$100K + \$71,4K = \$171,4K working for you.

You increased your APY from 19,5% to 33,42%.

But it gets crazier...

5/
This was only one loop.

You can take your \$71,4K \$UST and its equivalent 63,75K aUST, borrow \$MIM, convert \$MIM back to \$UST --> deposit to Anchor.

You can do this process 10 times!

How?

6/
1. Deposit \$UST into Anchor Protocol for \$aUST
2. Borrow \$MIM against your \$aUST at a set LTV (80% in this example).
3. Convert \$MIM to \$UST
4. Repeat the steps above another 9 times.

After doing this 10x, it will be possible to increase your 19,5% to 160%.

Crazy ain't it!?

7/
I know what you're thinking:

"Should I sell my #BTC and go full degen on these stablecoins?"

"WTF is the point of owning anything other than stablecoins if you can get 160% per year by just chilling at a beach?"

As always, there are some risks.

👇

8/
There are 3 main risks I can see:

1. Smart contract risk
2. Peg risk and leverage risk

1) Smart contract risk: When you deposit money into Anchor Protocol, you’re putting your money in a smart contract.

Smart contracts may be vulnerable to cyber-attack and tech failures.

9/
2) Peg risk and leverage risk

\$1 UST represents \$1 fiat.

But what if \$UST loses peg?

Let’s say we enter a bear market and the market drops 50%

How does the Terra ecosystem avoid that \$UST losing its peg?

And what about \$MIM? How do we know for sure that 1 \$MIM = 1 USD?

10/
The honest answer is that we don't know for sure what will happen.

If \$UST or \$MIM trades below \$1, market makers would quickly trade any coin for \$UST or \$MIM for a quick profit.

11/

Normally it wouldn't be too scary if \$UST or \$MIM loses its peg for some hours, because it would most likely go back to \$1 again.

But with the \$UST-\$MIM-leverage strategy you can be liquidated if \$UST or \$MIM goes below a certain level.

12/.
Let's say you're a crazy degen seeking max yield and loop \$UST 10x to get 160% APY.

You will be liquidated if \$UST or \$MIM goes below \$0,97. (If your LTV-ratio is 97% which is required to get 160%).

A stablecoin can go lower than \$0,97.

It has happened before, but 👇

13/
What if you reduced the probability of getting liquidated to 0%?

Read the thought experiment from my brother, @CryptoHarry_ introducing @NexusProtocol into this strategy. Read his full thread here:

14/
Anyway, without @NexusProtocol I think it's a huge risk borrowing \$MIM with a 97% LTV.

In this example I've used 80% LTV as an example, meaning that you'll get liquidated if stablecoins go lower than \$0,80.

You won't get 160% APY, but around 100-120% which is also great.

15/
Will I use this strategy myself?

Yes, sir!

I'll keep you posted, so follow me on Twitter for more alpha around this strategy and all Terra Luna strategies in general.

16/
Why do I think this is bullish for crypto?

Think about all the money that currently sits in the stock market.

The US Stock Market alone has a market cap of approx. \$50 trillion dollars.

Imagine what will happen if 5% find out that they can get 19,5% APY almost risk-free?

17/
Remember I was one of them.

I was a Wall Street bull.

Wouldn't listen to anything other than stock market talk.

If @PrestonPysh could change his view. Why couldn't I?

The easiest way to increase the crypto total market cap is by presenting easy products for the masses.

18/
Anchor Protocol is so simple that even a 5-year old would understand the concept easily.

The leverage yield strategy with \$MIM is a little bit harder for freshmen to grasp, but I believe that the masses would be more than happy with 19,5%.

19/
DeFi has made incredible opportunities for everyone and you can get wealthy no matter how much you start with.

I would love it if you could share this thread by retweeting as many of the tweets as possible.

Thank you!

/20
If you could help me spread the word by retweeting the first tweet I would be forever grateful 🙏

/22
Btw, there’s a lot of strategies you can use to increase your yield.

I write about financial freedom and crypto:

It's ofc completely free 👇

getrevue.co/profile/route2…

/23
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/24
Wen \$MIM om Terra, ser @danielesesta ?
Just to clear up 🚨

We don't know the date for when you can take your aUST, mint to \$MIM, convert to \$UST, deposit it to @anchor_protocol and then loop it 10x.

/25
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Er dette noe du har lyst til å prøve deg på, @sveinol ? 🐸
Important update!! 🚨

Tomorrow you'll be able to aUST --> \$MIM --> buy \$UST --> deposit to Anchor.

160% APY here we come!
Hey, @danielesesta

The #lunatics are more than ready to flow their aUST into the aUST-\$MIM pool (including me!)

wen launch of the pool on Curve today?

wen support for Terra Station?

(🎩, 🎩) LFG!

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More from @Route2FI

7 Dec
Let's look at Bomb Money.

A fork of one of my favorite degen plays \$TOMB.

This is the first fork of \$TOMB I've seen.

It is on the BSC chain (which makes me skeptical), but let's dig in why I think it's worth a try.

5,800% + 4000 APR

This equals 12-20% per day, anon.

First of all, the risk level is 10/10 which means it could be completely worthless or that it could moon 10x.

Personally, I'm only betting 0.5% of my portfolio.

Remember \$TOMB who pegs to \$FTM?

The main difference with @BombMoneyBSC is that it tries to peg to...

/1

The peg is 10,000 \$BOMB : 1 BTC.

It is currently over the peg (1.09 atm).

If you don't remember what the concept of \$TOMB was, you can recap here:

/2
25 Nov

\$FTM is a cryptocurrency that currently has a 6.1B mcap

The quality of their DeFi protocols and the interaction between them makes this one of the most interesting plays in DeFi right now for true degens

Let's take a look at all the opportunities

I'm going to start this by listing up some protocols and we will look closer at several of them later in the thread:

@Reaper_Farm = Auto-compounder

@SpookySwap = farm / AMM

@Spirit_Swap = farm / AMM

@beethoven_x = farm / AMM

@TarotFinance = leverage LP farming

/1
@Screamdotsh = lending / borrowing

@GeistFinance = lending / borrowing

@LiquidDriver = Sustainable farming driving liquidity

@Tombfinance = wild staking APY on \$FTM

@financegrim = Auto-compounder

@paint_swap = NFT marketplace

@scarecrowdefi = Yieldfarm with sick APY

/2
22 Nov
You already know that I like \$TIME and \$OHM.

Here is a new DeFi 2.0 protocol that is launching on Solana that I think will challenge the top 3.

It's called @BabylonDAO (⏳,⏳)

Let me explain why this isn't just a copy-pasta fork of \$OHM and why it offers unique value.

@BabylonDAO has used a long time on their launch, and for a good reason.

Let me present 3 points on why BabylonDAO is unique, and we will go through them in detail later in this thread.

1. Super strong community and solid roadmap

/1
2. Babylonswap: building their own DEX (the goal is to have all trading pairs)

3. Babylon is not looking at being an \$OHM fork it’s looking at being the reserve currency of the whole internet.

Okay, let's start.

BabylonDAO is a...

/2
14 Nov

-DeFi protocols
-Stablecoin strategies (20-160% APY)
-DeFi 2.0
-Financial freedom
+++

This will be an ongoing thread that will be updated every week, so make sure to bookmark it.

How to get more than 100% APY on stablecoins:

/1
A step-by-step thread for the \$UST - \$MIM degenbox strategy (112% APY):

/2
9 Nov
The aUST - \$MIM Degenbox strategy is ready.

You can get 20% APY on Anchor Protocol on your \$UST.

But since you're a real degen you want more, right?

Don't fear, anon.

I will show you how to get 100% + APY.

Warning! You may end up filthy rich.

You have to understand that using this strategy (leverage) is an increased risk.

1/
What do you need?

- \$UST

As of now, we have to use the \$ETH network.

I know what you're thinking.

"Insane gas fees". Right?

Yeah, they are, but there won't be that many transactions. I promise.

cont.

/2
8 Nov
Top 5 bullish crypto plays for the next 3-5 months

Here are the projects that I think can have a 3-10x upside in the next couple of months.

Warning!

Playing these may make you financially free 🐸

1. Unipilot (\$PILOT)

-A competitor to \$ICE, but 10x smaller mcap
-LPs can provide liquidity for any Uniswap pair.
-\$PILOT makes sure that liquidity is always optimized and earning the maximum amount of fees
-Unipilot index fund (reminds me of rebase tokenomics)

cont.

/1
-The platform will launch in 9 days, but the token is available to buy at Uniswap.
-\$PILOT had a fair launch. No extra benefits for the team and VC's.
-Triple audited

Brother, @____ProfessorX did a massive write up, so make sure you read his thread:

/2