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.

/THREAD
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?

Read on 👇🚨

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.

Let's talk about them

👇

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.

Read more about peg risk here:

11/
Another thing about peg risk:

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.

Check out my newsletter where you'll learn more about this.

I write about financial freedom and crypto:

It's ofc completely free 👇

getrevue.co/profile/route2…

/23
Want to earn money from both crypto and Twitter?

My book helps you get 1,000+ followers every month and shows you how to earn $1,000's

The method I show you in my book was how I went from 2K followers to 62K in 1 year

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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.

Please help me share this tweet so that @danielesesta or @stablekwon can give us an answer

wen ready, sers?🌖

/25
Are you dreaming of an escape from the 9-5?

Do you want to reach financial independence within 5 years?

Learn how I did it at 33 years old and how you can too in my book.

30% off with this link 👇

gumroad.com/l/SvwIc/release
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! Image
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.

/THREAD
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
$BTC, instead of $FTM.

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
Read 12 tweets
25 Nov
Let's talk about $FTM

$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

/THREAD
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
Read 32 tweets
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.

/THREAD
@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
Read 31 tweets
14 Nov
A thread of threads with all my guides on:

-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.

THREAD
How to get more than 100% APY on stablecoins:



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



/2
Read 12 tweets
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.

A step-by-step thread.

Warning! You may end up filthy rich.

/THREAD
If you have no idea what I'm talking about, then read my big thread about the concept first.

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

Therefore, read this first:



1/
What do you need?

- Metamask
- $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.

Let's look at how you can get $UST into your Metamask

cont.

/2
Read 26 tweets
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 🐸

/THREAD
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
Read 12 tweets

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