Real cost of borrowing stablecoins.
This is part 2 of the series, I will go through different chains in the next parts.
1/ Today there will be a short thread about the real cost of borrowing stablecoins on #Terra and does it worth it?
2/ Just a quick math on the very popular borrowing protocol @anchor_protocol on #Terra. Might be a little painful topic for a true #Lunatics
3/ You can borrow #UST against #bLuna at 60% LTV with NET APR -2% and after that the most popular strategy is to stake your #UST at @anchor_protocol for 19.5% APY. You can lp $UST with another token for a much higher APR but here comes IL into account.
4/ Let's talk about conservative way. I am considering 30% LTV to be safe for borrowing if you want to stay away from possible liquidation during market volatility. Another option to stay safe is to look on the charts from time to time.
5/ So what is the real cost of borrowing $UST? Let's assume you have 1000$ of #LUNA and borrowed 300$ of $UST against it and deposited for a 19.5% APY. By the end of the year you will get (1000-2%)+(300+19.5%) = 1038.5$ -> 3.85% APY
6/ Just by delegating your #Luna you would get ~8% APR on your Luna and possible airdrops. So the real cost of borrowing against #Luna is the missing gains. There might be much more interesting ways to get yield on your #Luna, but this is outside today's topic.
7/ As always thank you for your attention.

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More from @DeFi_Made_Here

Jan 27
My thoughts on a current situation with all the things going around @Wonderland_fi and dear @danielesesta
1/ First of all I need to mention that I've never participated in wonderland (I do have a basic idea how the market works and who is paying for the party), but I allocated ~1% of my funds into $Spell, $Ice and $wMemo. I owned $MIM as well.
2/ I understand that @MIM_Spell is not connected to @Wonderland_fi but massive panic sell (any random FUD on twitter) might cause depeg so I quite 99% of my $MIM positions. We are d̵e̵g̵e̵n̵s̵ farmers after all and we want to keep our funds safe.
Read 10 tweets
Jan 27
Real cost of borrowing stablecoins.
This is part 3 of the series, I will go through different chains in the next parts.

1/ Today I will speak about #Fantom chain. Let's take a look on @GeistFinance, @Screamdotsh, @ibdotxyz, @MIM_Spell, @HundredFinance and @QiDaoProtocol.
2/ @GeistFinance provides up to 10% APR on your collateral (28% APR for #CRV at the moment) and up to positive 4% (get paid to borrow) APR on borrowed stablecoins. Note that #GHST tokens have a 3 months vesting period or a 50% penalty for an early unlock.
Read 14 tweets
Jan 26
Quick update on one of the previous threads.
1/ There is a new vault on @Defrost_Finance which allows you to borrow against $sdav3CRV yield bearing asset from @StakeDAOHQ
2/ First you need to deposit your stablecoins on @CurveFinance to av3CRV pool and get the receipt token
Read 7 tweets
Jan 25
Why to earn less? Here is a little thread with the correct strategy:
1/ Stake $wFTM at @iearnfinance for 70% APY, go to @QiDaoProtocol, deposit $yvwFTM to the vault and borrow $MAI for 0% interest (0.5% repayment fee applies)
2/ At the moment you are getting paid 1% in $Qi for borrowing #MAI stablecoin. Let's assume you have deposited 1000$ worth $wFTM and borrowing at safe CDR of 150%, so you can borrow 666 $MAI for the first loop.
Read 9 tweets
Jan 25
Real cost of borrowing stablecoins.
This is part 1 of the series, I will go through different chains in the next parts.
1/ Today we'll talk about minimizing the cost of borrowing stablecoins on #Polygon chain. #Fantom and #Terra are in the drafts already.
2/ The most popular loan in crypto is stablecoin loans. If you fill that market is trending upwards you can leverage position by collateralizing your assets and borrowing stablecoins against it. It is not the most actual topic at the moment, but you'll be prepared for later.
Read 12 tweets
Jan 24
Today we will speak about @kava_platform and how to get 70% APY on your stables.
1/ @kava_platform is working on a kava chain which has around 500M$ of TVL and it is a part of @cosmos eco system. Recently @kava_platform joined #IBCGang which will allow crosschain transfers, but let's come back to the topic.
2/ Go to and add liquidity to the BUSD/USDX liquidity pool for 70% APY. APY depends on the price of rewards which are paid in $SWP token and total value locked. I have started farming with 140% APY last year. Image
Read 21 tweets

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