pLUNA DAO Profile picture
Mar 24 14 tweets 6 min read
🚨Massive droppage of Alpha detected🚨

in today's podcast between @APompliano and @stablekwon!

$BTC x $LUNA will kickstart the next paradigm shift in crypto🤝

Missed it? Don't worry, here's a quick summary. A short thread🧵
1/ What was the idea behind starting @terra_money ?

Stablecoins make up 80% of crypto trading volume👀.

Current gen stablecoins are however either centralized or based on leverage and thus not scaleable.

@terra_money is a new way to scale stablecoins, using an algorithm.
2/ How does this algorithm secure the peg?

The $LUNA token absorbs volatility in price demand💡

- $UST above peg = $1 of $LUNA can be burned to mint UST, increasing $UST supply .

- $UST below peg = $UST can be burned to receive $ 1 of $LUNA , decreasing $UST supply.
3/ What are the pros and cons of algorithmic stablecoins?

Stablecoins have three crucial dimensions:

- decentralization
- stability
- scalability

Algo stables are very strong when it comes to #decentralization and #scalability, however are more brittle regarding stability.
4/ This brittleness stems from the fact that when demand for an algorithmic stablecoin decreases too much too quickly, it can cause a death spiral of the paired asset.
5/ How did Terra previously solve this scenario from happening?

@terra_money focused on use cases that exhibit low volatility, reach a lot of real world users and exhbiti stickiness (payment apps like Chai, dApps like @pylon_protocol, @anchor_protocol, etc.)
6/ Why is a $BTC reserve needed as an additional mechanism now?

Since @terra_money has become the 2nd biggest smart contract platform (TVL), some newer applications now exhibit much higher volatility, so the initial strategy is getting harder to follow.
7/ How are reserves being held?

Currently being held in a multi-sig wallet, with keys distributed between 7 directors of @LFG_org (all builders of various protocols on terra).

Current $BTC holdings are around $1B, the remaining $2B are being steadily converted to $BTC 👀.
8/ How will these $3B be increased to $10B?

$3B is just the beginning🤯

The goal is to use some part of seigniorage from $UST to build up the $BTC reserve.

Everytime $UST is minted, some portion of that will burn $LUNA, while the rest gets used to buy $BTC for the reserve.
9/ That does mean less $LUNA will be burned in favor of more $BTC buying. @stablekwon went as far as saying up to 50 % could be diverted to $BTC buying.

This will be a huge change to the current mechanism, a draft is being prepared and to be published with the community #soon.
10/ @stablekwon's idea is that the benefits this move enable for $LUNA holders in the long-term, will outweigh the relative decrease in $LUNA that is being burned.
11/ Most importantly, using $BTC as a reserve asset helps build credibility within the broader crypto space.

This goes both for the $BTC community as well as for other communities, simply due to the fact that $BTC is the "soundest and most credibly neutral crypto asset".
12/ The main takeaway ?

@terra_money aims to build the next generation of currency and is willing to employ major moves to gain the necessary recognition, credibility and stability it needs in order to achieve this mission.

In the process, both $LUNA and $BTC benefit 🤝🧡
13/ We hope you enjoyed this summary!

Feel free to follow for more updates on the matter 🚀

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More from @pLUNADAO

Mar 26
You've heard about @LFG_org buying more and more $BTC to secure $UST, but you're still not sure what these plans mean for $LUNA?🌕

Here's all you need to know in six tweets.🧵
1/ $LUNA is currently and will remain @terra_money's primary reserve currency for all stablecoins, including $UST.

$BTC is being implemented as a secondary reserve currency, to secure $UST in spite of the rising demand volatility created by newer protocols on @terra_money.
2/ $UST will therefore be able to be minted by either

a) Burning $LUNA (current mechanism) or

b) Trading in $BTC (new mechanism).

In both a) and b), a $1 of burnt/traded in $LUNA resp. $BTC grants you one $UST.
Read 8 tweets
Mar 24
"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)
Read 21 tweets
Mar 21
Still on the fence of whether to invest in one of the fastest growing @terra_money protocols?

The COMPREHENSIVE GUIDE to the $PRISM (& $xPRISM) token is finally here!📚📚📚

Tokenomics, use cases and a short summary (not-sponsored) ⚖️!

A thread.🧵
1/ The overview 📖

1. Token distribution and launch📊(tweet no. 2)
2. What can you do with $PRISM?🔨(tweet no. 10)
3. What can you do with $xPRISM?🛠️(tweet no. 11)
4. Development of token price📈(tweet no. 19)
5. Implications and summary 📕(tweet no. 20)

Let's dive in! 🌊
2/ Token distribution and launch📊

Understanding token distribution and release (vesting) schedule is a crucial aspect when evaluating a #cryptocurrency.

As such, let's take a look at who controls what amount of $PRISM tokens and how they plan to be unlocked.
Read 25 tweets
Mar 19
Realised you missed the phenomenal space between @stablekwon and @udiWertheimer discussing the future of $LUNA and the implications of a growing $BTC reserve? 👀

Don't worry, we got you, dear #LUNAtics.

A thread🧵giving you the best out of 1.5h of pure @stablekwon content 🌕
1/ Why do people prefer algorithmic #stablecoins?

Centralized stablecoins would have an edge if not for their main problem: Regulatory risk🏛️

@terra_money's thesis: Decentralized economies need decentralized stablecoins
2/ Lately, regulators are seemingly becoming more and more aggressive with regards to stablecoins.

It seems clear, that regulators are aiming to run centralized stables like a financial institutions (i.e. implementing mandatory KYC, freezing accounts etc.)🏦🏦🏦
Read 22 tweets
Mar 17
"WHAT THE F*CK IS $pLUNA?" Say no more!

Finally it's here, the COMPREHENSIVE GUIDE to $pLUNA 📚📚📚

A thread🧵for all #LUNAtics, #THORChads and those just looking to invest in strong fundamentals 🚀
1/ The overview

1. What is $pLUNA? (tweet no. 2)
2. What can you currently do with it?🛰 (tweet no. 7)
3. What will you be able to do with it #soon?🚀 (tweet no. 10)

LFG!
2/ What is $pLUNA?

To understand $pLUNA, we must first introduce its parent: @prism_protocol and their one-of-a-kind "refraction" mechanism that they recently introduced to the @terra_money ecosystem.
Read 21 tweets
Mar 12
You've asked for it and here it is:

The COMPREHENSIVE GUIDE to @prism_protocol 📚📚📚

Every single functionality on prismprotocol.app explained in detail, enabling YOU to make the most of your $LUNA 👀

A thread 🧵.
1/ The overview

This guide will be structured like @prism_protocol's functionality tabs:

1. Refract 🪞 (tweet no. 2)
2. Stake 🥩(tweet no. 9)
3. Swap💱(tweet no. 13)
4. Pools🏊 (tweet no. 15)
5. Govern🏛️(tweet no. 18)
2/ Refract 🪞

Refracting is without doubt @prism_protocol's main functionality.

Within the "Refract" tab, you have the ability to:

a) Split
b) Merge
c) Bond
d) Redeem

Let's have a look!
Read 25 tweets

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