Thread by @hutchonthego

4.5-min vid on some fundamental differences between borrowing w/ $bLUNA vs. $LUNAx

Short 1/6 🧵👇 for scrollers.
YT-Video:

2/6 How these 2 tokens interact w/ staking rewards is key:

$bLUNA: emits the prevailing staking yield in $UST (which provides versatile usage throughout #Terra)

$LUNAx: converts rewards into $LUNA & auto-compounds this added exposure unto itself so its value inflates over time

3/ But you forfeit your staking yields to Anchor wen providing $bLUNA as collateral.

However, Anchor's favorable 80% LTV allows true Degens to maximize the amount borrowed.

Deploying these funds into 19%-earn, yield farms, or just more $LUNA often outruns this opportunity cost.

4/6 To optimize the math you're compelled to either:

- maximize your loan to outrun the opportunity cost
- or withdraw collateral to extract as much staking yield as you can.

This continual managing & manicuring leads to fatigue & fear of impending liquidation as $LUNA 📈📉

5/6

Conversely, borrowing on @mirror_protocol or @EdgeProtocol allows you to safely overcollateralize w/o sacrificing your staking yield since $LUNAx auto-compounds unto itself.

This is ideal for a $LUNA #HODLer who wants to do some "Degen-Lite" style borrowing on #Terra!

6/6
Coming Soon: more detailed videos on how to employ these "Degen-Lite" strategies using $LUNAx on Edge & Mirror.

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YT-Channel:
youtube.com/channel/UCPMX1…