The $LUNA - $bLUNA Slow Burn:

Here’s another way to make some more $LUNA. (18-65% APY)

APR has gone down recently, but it fluctuates.

LUNA OGs will know about this one, but it's very low risk and an easy strategy for newcomers 🌖 🧶 👇 Image
1/ First, if you're not bullish on $LUNA long term, read this thread about the Terra ecosystem (and the linked threads).

2/ Now that you understand the Terra ecosystem, you should be sufficiently desperate to stack more $LUNA.

A couple days ago, I wrote about a strategy to get cheap bLUNA.



But that strategy relies on unpredictable dips that liquidate borrowers.
3/

The slow-burn strategy is more predictable. It relies on 2 basic ideas:

1. $bLUNA (bonded LUNA) trades at a slight discount (1-3%) to $LUNA on @terraswap_io

2. 1 $bLUNA can be unbonded for 1 $LUNA on @anchor_protocol

Here's how you can use this to grow your stack.. 🌖
4/

1. Buy 40 $LUNA

2. Swap 40 LUNA for 41 bLUNA on @terraswap_io (2.5% discount)

3. Slow burn 41 bLUNA for 41 LUNA on @anchor_protocol (~21 days)

You now have 1 extra LUNA. Repeat infinitely.

I’ve seen discounts of 1-3% for $bLUNA on @terraswap_io but it fluctuates.
5/ If you intend to hold the LUNA tokens, this is a strategy with a decent ROI.

Since, it takes 21 days per loop, you can loop this process > 17 times in one year.

- 1% per loop => 18% APY
- 2% per loop => 40% APY
- 3% per loop => 65% APY Image
6/ In comparison, staking $LUNA on Terra Station currently yields about 9%.

So even at a 1% discount, this strategy is significantly better, although it's not as passive as staking.
7/ Hopefully, you found this helpful. 🙏

I'll be posting more about the $LUNA ecosystem this week - #DeFi strategies, deep dives into new protocols, general advice and some shitposts :)

Remember the best way to learn DeFi is to use DeFi.

If you made it this far, ygmi.

#WAGMI
8/ Some notes:

- This strategy might not work as well when @astroport_fi becomes the primary DEX in the Terra Ecosystem.

- If you're getting 0.6% discount on $bLUNA, it's > 10% APY, which is still better than simple staking.

- For me, not be worth it if discount < 1%

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with shivsak.eth

shivsak.eth Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @shivsakhuja

18 Dec
20% on stablecoins too tame for you?

How about 487% with no price exposure to #crypto?

Ever heard of market neutral strategies?

These can make money whether the market goes up or down..

Here's how they work, and some good one to get started with in #DeFi 👇 🧶

$BTC $ETH
1/ A market neutral strategy is one in which your ROI is independent of the price of the asset.

Typically, this involves taking a long and a short position on an asset.

⬆ long position = betting on the price going up.

⬇ short position = betting on the price going down.
2/ Consider this:

- You take a $50 long position on coin A
- You take a $50 short position on coin A

You now have a $100 market-neutral position.

But if you're long and short , where's the damn return coming from?!
Read 12 tweets
17 Dec
Here’s an infographic that shows the estimated size of various asset classes.

Crypto is only $2.5T

All these assets combined are > $500T.

Most of these assets will get tokenized over the next decade or two, and the protocols that tokenize them will capture a lot of that value. Image
1/ Why would we want to tokenize assets like stocks?

– Globally accessible, tradeable 24/7/365
– Transparency
– Verifiable ownership (unlocks doors like voting / rewards)
– Programmable asset is infinitely more useful (collateral, derivatives, automation, direct transfers, etc)
2/ Why tokenize real-estate?

– Fractionalized investing
– Globally accessible, tradeable 24/7/365
– Diversification through bundling
– Add liquidity to illiquid market
– Reduced friction of transactions
– Plug into smart contracts to collateralize, create derivatives, etc
Read 6 tweets
16 Dec
Here’s a DeFi strategy to stack more $LUNA

Low risk if you play it right.

I previously explained how to use @TeamKujira’s Orca protocol to get crypto at cheaper-than-market prices.

In this thread, I explain how you can loop that process to amplify your returns 🧵 👇
1/ For reference, here's the thread on how you can get cheap crypto using Kujira's Orca protocol:



Keep reading for the looping strategy that can boost your $LUNA stack.. ➿
2/ Here are the steps:

1. Bond $LUNA for bLUNA on @anchor_protocol

2. Deposit bLUNA as collateral on Anchor

3. Borrow $UST from Anchor (***)

4. Use borrowed $UST to snipe cheap $bLUNA on Orca

5. Withdraw bLUNA from Orca, and repeat steps 2-4 to increase your LUNA stack.
Read 8 tweets
16 Dec
I wanted to see how some of the OG cryptocurrencies performed over the years, so I found some data on @CoinMarketCap and made infographics.

Comment below if there's any #cryptographics you'd like to see in the future!

I just need an excuse to make infographics 😆

Like / RT! ImageImageImageImage
Data was measured for mid-december each year using @CoinMarketCap's history tool.

Annualized returns for each currency were as follows:

- $BTC: 119%
- $ETH: 302%
- $DOGE: 228%
- $LTC: 87%
- $XRP: 113%
Price History measured for Bitcoin $BTC (mid-december):

2015 $ 433.75
2016 $ 790.53
2017 $ 19,140.76
2018 $ 3,252.84
2019 $ 7,152.30
2020 $ 19,142.38
2021 $ 48,336.48 Image
Read 7 tweets
8 Dec
How to snag cheap $LUNA and $ETH below market value using @TeamKujira's Orca protocol 🐋

Here's an explanation of how it works, and a guide on how to use it 🧶 👇

#DeFi #Crypto #Cryptocurrency #Whales #Terra #TerraLuna #Cryptocurrencies
1/ You already know about setting limit buy orders to scoop up crypto when its market price dips. This is not what this guide is about.

This guide is about a new way to scoop up crypto for a (possibly hefty) discount to its current market price.

Read on..
2/ @TeamKujira's #Orca Protocol allows users to snipe crypto for cheaper prices when borrowers get liquidated. 🐳

This means you could buy $ETH or $LUNA for 10% less than its trading price.

Maybe even 20% cheaper. Or 30%. 👀

Here's how it works..
Read 18 tweets
8 Dec
How to earn 35%+ on #stablecoins - a step-by-step guide 🪙 👇

#crypto #cryptocurrencies #yieldfarming #DeFi
1/ A few days ago, I wrote a step-by-step guide on how to earn 20% on $UST stablecoins using @anchor_protocol:

2/ You'll need to have a Fantom wallet set up in Metamask. Here's how you can set up a $FTM wallet 💰

docs.fantom.foundation/tutorials/set-…
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(