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Feb 15 • 12 tweets • 4 min read
Edge Protocol is launching its beta today.

Let's look at 4 different strategies you can use to maximize your gains:

1) Degenbox (borrow $UST - loop)
2) $LUNA leverage
3) $LUNAx leverage
4) The $LUNA shortooor

/THREAD

1/12
1. The Degenbox:

How you play it:

1) Deposit money on Anchor
2) Supply aUST on Edge
3) Borrow $UST on Edge
4) Deposit on Anchor
5) Supply aUST on Edge
6) Borrow $UST on Edge
7) Deposit on Anchor
8) Repeat

I've already written a thread here:

2/
2. $LUNA leverage:

1) Supply $LUNA on @EdgeProtocol
2) Borrow $UST against $LUNA
3) Swap $UST to $LUNA at terraswap.io
4) Repeat

3/
3. $LUNAx leverage:

1) Stake $LUNA on Staderlabs (10,2% APY)
2) You get the liquid token $LUNAx which you supply on Edge
3) Borrow $UST on Edge
4) Deposit the borrowed $UST on Anchor
5) Supply aUST on Edge
6) Borrow more $UST
7) Or you could get more $LUNA instead of $UST

/4
4. The $LUNA shortooor

1) Supply $UST
2) Borrow $LUNA against $UST
3) Swap $LUNA back to $UST at terraswap.io
4) Repeat
5) You now owe Edge Protocol x number of $LUNA that you have to pay back
6) PS! Probably better to short on a CEX

/5
If you're wondering how much you can borrow each time, check the screenshot below.

Since the protocol is launching today, I advise you to go slow with very small amounts.

Personally, I will wait a little to see how this works out.

/6 Image
The main questions I have that make me a little anxious is:

1) How is it possible to borrow $UST for eg. 5% when the lender instead could've recieved 19,5% by depositing it directly in Anchor?

2) Audit by The Z Institute (a good auditing company?)

/7
The beta is capped at $10M max, so it's nothing like the Abracadabra Degenbox yet ($1,100M at the top in January, now $735M).

If you'd like to try Edge Protocol, promise me that you read the documents first here:

docs.edgeprotocol.io/overview/

/8
Be aware of risks with protocols in beta.

Some risks that Edge Protocol listed themselves here:


/9
I also wrote about some risks by using Edge here:



/10
If you liked this thread, you’ll also like my weekly newsletter:

getrevue.co/profile/route2…

It's free and my goal with the newsletter is to break down DeFi and crypto in an easy way.

/11
Follow me on @Route2FI for more threads about DeFi.

I would also love it if you could share this thread by retweeting the first tweet below

👇



/12

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More from @Route2FI

Route 2 FI Profile picture
Feb 12
New stablecoin strategy for $UST

A way to use aUST as collateral to borrow more aUST

Basically, it's similar to Degenbox, but made for the Terra ecosystem and much easier to use

Let's see how you can 4x your Anchor Protocol yield, and if it's too good to be true

/THREAD

1/26
First of all, I just want to inform people that this is a leverage strategy. Use what I write in this thread as ideas and not as financial advice. DYOR.

Secondly, not everyone is happy about these leverage strategies. It's really a two-edged sword.

/2
The positive: more $UST in circulation (wider adaption of Terra). More $UST = burning of $LUNA --> increased $LUNA price

The negative: Leverage strategies drain the yield reserve of Anchor Protocol faster.

And for the third, $UST is an algorithmic stablecoin.

/3
Read 27 tweets
Route 2 FI Profile picture
Feb 8
A quick update of the current state of Anchor Protocol and the "holy" 19,5% APY.

With only $15M in the yield reserve, people are starting to get worried.

Let's take a look at the facts and what's next for Anchor:

/THREAD

1/18
First of all, the yield reserve is built for times like this.

If the yield reserve goes to zero, then Anchor Protocol will provide market rate.

ATM around 10% APY.

I've already written a detailed thread about this, you can check it out here:



2/
The yield reserve is decreasing approx. $1,5M per day, and with $15M in the yield reserve it should go to zero within 10 days.

A hot topic these days is: "Will the yield reserve be refilled?"

I think it will, let's look at why:

3/
Read 19 tweets
Route 2 FI Profile picture
Feb 4
Strategy for buying $LUNA and $ETH cheaper than market price:

Let's look at Kujira Orca and how you can buy other people's liquidated assets.

2 strategies:

1) How to buy $LUNA / $ETH at a 10% discount

2) Buy $LUNA / $ETH at a 10% discount and make an arbitrage

/THREAD
Let's deep dive into Kujira Orca (@TeamKujira) and see why the DAO is a DeFi-protocol that both benefits the users and the Terra Ecosystem.

Kujira Orca is a protocol that is built on Terra to protect the $UST-peg and consequently the price of $LUNA.

/1
A bi-effect of this is that we (the users) can snag cheap $LUNA or $ETH.

So what is it, and how does it work?

First of all, Terra is built around Anchor Protocol (the savings protocol where you can get 19,5% APY).

To understand Kujira, we have to understand Anchor Protocol

/2
Read 48 tweets
Route 2 FI Profile picture
Feb 1
Terra Degen Yield strategy V2

I've done some tweaks and found a way to increase the Anchor Protocol rate from 19,5% APY to 50-140% APY on $UST.

No $MIM. No Degenbox.

Let's do an example with $15K to illustrate how it works.

/THREAD
I just want to start this thread by saying that nothing in DeFi is risk-free.

What I post is investment ideas and not financial advice. Always do your own research.

And if you try this strategy, try with a very small amount the first time so you understand how it works.

1/
This is an active strategy, which means that you should monitor it daily.

Most often you don't have to do something, but you should always keep an eye on strategies with higher risk.

/2
Read 40 tweets
Route 2 FI Profile picture
Jan 28
So much fud about $UST on my timeline.

It's about time we're talking about Anchor Protocol, the sustainability of the 19,5% APY, $UST peg, and the impact of $LUNA's price.

We will also look at solutions for how Anchor Protocol can handle this in the best way.

Long THREAD

1/
So, why are so many people hating on $UST and Anchor Protocol?

Just look at this.

One year ago the mcap of $UST was $260M and Terra had only one protocol (Mirror Protocol).

Today it's $11,2B, and 17 protocols are launched (100+ will launch in 2022).

That's a 43x in 1 year

/2
$UST has surpassed $DAI and is aiming for the #1 spot among stablecoins

Sounds impossible? Maybe. But it's crazy to see how well Terra has succeeded with basically zero marketing

When the mcap of $UST was $1B, @stablekwon told people that $UST mcap would be $10B by EOY 2021

/3
Read 46 tweets
Route 2 FI Profile picture
Jan 25
A couple of days ago I asked you about the best newsletter and blogs for crypto and DeFi.

Here are my 7 favorites that I read everything from + 16 other newsletters that I read from time to time.

THREAD/
1) @cobie
One of the best newsletters out there.

Also a great Twitter profile with a well-curated feed:

cobie.substack.com
2) @packyM:

Fantastic newsletter talking about everything web3, crypto, and NFT's

I love how deep he digs. Probably the one I've learned the most from.

notboring.co
Read 16 tweets

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