Thread by @staderlabs

LunaX vs UST investments.

Which should you choose and why? 👇

When it comes to DeFi on @terra_money, there's a plethora of options.

First, you can leverage $UST on multiple protocols.

You can also use $LUNA, its derivatives, and anything in between.

Here's the difference:

When it comes to $UST, there's a key thing to have in mind:

Every time you lock $UST, you actually miss out on $LUNA appreciation.

This is especially important since Terra just opened up for massive adoption.

Here's why:

Terra is actually a family of stablecoins.

In order to mint new $UST, an equivalent of $LUNA is burned.

For example:

To mint 1 $UST, Terra burns $1 worth of $LUNA.

In practice, this means one thing:

While $UST is designed to keep stable...

$LUNA is designed to accrue value through stable coin adoption.

That's why many folks who prefer to invest in $UST, actually lose on constant $LUNA appreciation.

This is especially noticeable with longer-term UST locking.

Next:

What about $LUNA investments?

This is the next layer you should be thinking of.

You can leverage it in multiple ways:

Ask for a loan, short it, use it on protocols, etc.

It all depends on your personal risk/reward appetite.

Yet, there are even better options:

Meet $LUNA derivatives.

These are synthetic tokens that represent Luna.

By using them, it's like having $LUNA + specific protocol benefits on top of it.

This means you get to enjoy all kinds of rewards without actually giving up on liquidity.

Here's where $LunaX comes:

Stader's $LunaX is a synthetic token that represents your staked Luna.

In practice this means:

- Airdrops claiming with 1 click
- Auto compounded staking yield
- Less slashing risks
- Immediate unlock on DEX
- $SD token farming (during community farm)

Plus:

We are working hard to expand $LunaX possibilities, so you can use it in multiple ways.

Our first goal?

To make it available on the biggest Terra protocols with all their benefits.

For example:

Last week we submitted 2 proposals.

The first one is to include $LunaX as a collateral asset on @mirror_protocol.

Just imagine having all the usual Stader benefits like auto compounding...

Plus censorship-resistant, "mirrored" versions of real-world assets, too.

You can review this proposal on the Mirror forum.

Comment, like and let us know your thoughts about it here:

forum.mirror.finance/t/addition-of-…

Our second proposal is to integrate Stader validator pools for Anchor collateral staking.

This will allow you to deposit your assets on @anchor_protocol...

And stake your Luna with Stader pools at the same time.

What's the benefit?

You will automatically get #airdrops, which you will be able to claim all at once with a click of a button)

Below is the proposal on the Anchor forum.

Comment, like and let us know your thoughts about it here:

forum.anchorprotocol.com/t/integration-…