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 🌖 🧶 👇
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 🌖 🧶 👇
1/ First, if you're not bullish on $LUNA long term, read this thread about the Terra ecosystem (and the linked threads).
https://twitter.com/shivsakhuja/status/1471231097547603969?s=20
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.
A couple days ago, I wrote about a strategy to get cheap bLUNA.
https://twitter.com/shivsakhuja/status/1471613617141260289?s=20
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.. 🌖
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.
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
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
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.
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
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%
- 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
