Going directly from your bank earning .01% to UST in seconds through @kado_money, or direct deposit your salary in @OutletFinance, and immediately start earning 20% in @anchor_protocol
Using @kinetic_money money to borrow against your $aUST balance in Anchor and have the loan pay itself back, and use those funds to towards a @Cephii1 rebalancer bot on @NexusProtocol
Arbitraging pools with $LUNA, $pLUNA, $bLUNA, $nLUNA, $cLUNA, $LunaX, and $LUNA2x to stack as much $LUNA as possible
Damn @terra_money is really about to be a money making machine. And these are just the low hanging fruits
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While many people are trying to speculate on the prices of $pLUNA and $yLUNA at @prism_protocol 's launch, what I find way more interesting are the long-term implications and creative analysis of the yield curves that will result from PoS yield tokens
🧵 Time
In TradFi, it is common practice to look at bond yields to see where investors are speculating interest rates, the economy, and inflation are heading in the future.
To put as simply as possible, yield curves rising at a normal rate generally signals economic growth or high inflation, while an inverted curve represents an incoming recession or an effort to reduce inflation.
My long term thesis on $LUNA in a few short steps, a 🧵:
1. $LUNA as a bet on Terra blockchain growth 2. $LUNA as a bet on Terra going cross-chain and mainstream 3. $LUNA as a bet on DeFi as $UST becomes the largest scaled decentralized stablecoin 4. $LUNA as an inflation hedge
As of right now we’re seeing step 1 play itself out. Up until this point the only major use of $UST we have seen has come from Terra’s own blockchain through $ANC and $MIR. Once Col-5 rolls out we will see this continue as 50+ protocols are set to launch on the blockchain.
It’s also at this point we will finally see step 2 begin to emerge through IBC and Wormhole integrations. The liquidity will grow slowly over time as more DeFi protocols begin to integrate themselves with $UST. @orion_money will also act as the trojan horse for Anchor usage
Another important distinction when it comes to the differences between $ETH and $LUNA, $UST has to do with the constant friction between the holders of the value token and the actual users of the ecosystem.
As the $ETH network gets used by more and more people, that congestion causes problems for those using the blockchain. The gas fees become incredibly high, the token value fluctuates making it hard to plan for paying the gas, more failed transactions, longer wait times, etc.
But when the experience for users gets really bad, the holders of the token accrue a lot of benefit. Due to EIP-1559 more has fees means more burning of the supply, more usage causes an increase in the price of the token through network value and the necessity to pay for gas
I firmly believe Columbus-5 is going to be the catalyst for absurd parabolic growth for $LUNA. There has been a lot of great content about why this upgrade is incredibly important, but I want to add some of my own thoughts to the discussion 👇
The first reason for parabolic growth has to do with $UST adoption, given that every $UST requires $1 of $LUNA to be bought and burned. With Col-5 comes many different projects whose aim is to use as much $UST as possible.
I believe the goal of $10b by the end of the year is certainly feasible, given all the developments the upgrade brings. Many of the 50+ protocols building on Terra will suck up a lot of $UST in some way. Here are some specific catalysts I'm looking to (not exhaustive):