Thread by @pLUNADAO

"WHAT THE F*CK IS $yLUNA?" Say no more!

We've covered $pLUNA, now it's time for the COMPREHENSIVE GUIDE to $yLUNA 📚📚📚

A thread🧵showcasing how you can get the highest APR staking rewards on $LUNA 🚀

1/ The overview 📖

1. Why are we covering $yLUNA? 🤨(tweet no. 2)
2. What is $yLUNA? 🌛(tweet no. 4)
3. What can you currently do with $yLUNA?🛰 (tweet no. 7)
4. What are upcoming use cases? 🛠️(tweet no. 14)
5. Summary 📕(tweet no. 16)

Let's dive in!🌙

2/ Why are we covering $yLUNA?🤨

First of all, let's clarify a common misconception:

At @pLUNADAO, we are not short $yLUNA.

In fact - we are long $LUNA, long $pLUNA (ofc) and long $yLUNA as well! 🚀

(More on this at the end)

3/ More importantly, $yLUNA and $pLUNA represent two sides of the same coin.

Both tokens live in a symbiotic relationship with one another. None can live, when the other dies. 🤯

As such, we deem it our mission to educate everyone on the functionalities of $yLUNA as well!🤓

4/ What is $yLUNA?🌛

To understand $yLUNA, we must first introduce its parent: @prism_protocol

While you can find an in-depth guide here... 📚

https://twitter.com/pLUNADAO/status/1502575947240910850

...the most important part about about @prism_protocol is that it allows you to...

5/ ...refract your $LUNA, in order to split it into an equal amount of its two components:

- $yLUNA and
- $pLUNA.

Interested in $pLUNA? You can find our in-depth guide here:📚

https://twitter.com/pLUNADAO/status/1504363919053312001

6/ Therefore, $yLUNA is simply one of the two components that make up a full $LUNA.

Why is splitting $LUNA good? We've said it before: it enables a myriad of use cases that are simply not possible with a full $LUNA 👀

A TVL of already > $350mm seems to confirm that🚀

7/ What can you currently do with $yLUNA?🛰

$yLUNA is the component representing the underlying $LUNA's ability to stake and receive airdrop rewards.

As such, you can stake your $yLUNA at prismprotocol.app/stake to earn an APR of currently >9 % (calculated on $yLUNA price!)

8/ It's important to note that by holding $yLUNA, you are effectively holding a perpetual (!) right to all of the underlying $LUNA's staking rewards and any potential airdrops.

The value of $yLUNA is thus - in general - very closely linked to the attainable staking rewards🧐✍️

9/ Currently, besides the "regular" staking, you can put your $yLUNA to work in an incentivised $PRISM Farm on @prism_protocol 🧑‍🌾

At the moment, this is the much better choice since the current APR is higher than regular staking by a factor of x4.5 👀

10/ A couple of factors about $PRISM farm that are important to note:

- Rewards are paid out in $PRISM , not $yLUNA and $pLUNA like regular staking (find our guide to the $PRISM token below!

https://twitter.com/pLUNADAO/status/1505966074356981773

)

- There is a 30-day vesting period for these tokens

and...

11/ ...you can further increase your $APR by holding and pledging the staked version of $PRISM ( $xPRISM) in order to generate AMPS⚡️.

AMPS can seem complicated at first, but worry not: All your answers to AMPS ⚡️can be found here

https://twitter.com/pLUNADAO/status/1502575947240910850

12/ The final APR from $PRISM farm under consideration of AMPS differs based on the exact amount of $xPRISM pledged and for how long it has remained pledged.

We are however regularly seeing a combined $yLUNA staking APR in $PRISM farm of around 80 - 120 % 👀

13/ Of course, besides staking you can also make use of your $yLUNA by:

- trading on the @prism_protocol's native DEX (3rd biggest DEX on @terra_money) or by

- providing liquidity in the $yLUNA trading pool 🏊‍♂️

Currently: APR from staking >>> APR from LP ✍️

14/ What are upcoming use cases? 🛠️

@prism_protocol has only recently launched and is thus just beginning its journey within the $LUNA ecosystem. As such, further use cases are on the horizon for all of its derivatives.

15/ While in the case of $yLUNA, earning staking rewards and airdrops will always remain the core functionality, it is highly likely we will see further incentivised $yLUNA farms in the future!

These might even be offered by other projects 🤯

16/ Summary 📕

We believe $yLUNA to be one of the most interesting $LUNA derivatives within the current @terra_money ecosystem.

The attainable yield from $PRISM farm further makes it THE single most profitable way to stake your $LUNA at the moment🚀

17/ As we mentioned, we are definitely long $yLUNA.

We believe @prism_protocol and its refraction mechanism are here to stay, and as such this applies to $yLUNA as well.

Now, $yLUNA + $pLUNA = $LUNA (or $cLUNA, but lets forget about that)

As such...

18/ It's always important to look at the ratio between $yLUNA and $pLUNA, as it is constantly subject to change.

Currently it sits at around 4 to 1 😶

At @pLUNADAO we believe this ratio will decrease in favor of $pLUNA in the long-term, as more use cases are added for it.

19/ So while we are more (!) bullish on $pLUNA, we recommend $yLUNA to everyone looking to maximize their $LUNA staking returns.

The best part: By refracting your $LUNA, you will also become a $pLUNA holder and as such automatic member of @pLUNADAO 🤝💜

20/ Enjoyed this thread?🥰

Follow us to stay in the loop❤️ and retweet the first tweet to help us spread awareness about $yLUNA 🤝

https://twitter.com/pLUNADAO/status/1506904600363900931

Also: Let us know what you think about $yLUNA 😉