The Terra Network

[brianwalden]

So I went ape on farming LUNA-bLUNA.

The Terra ecosystem is still really young, TerraSwap doesn't even show you what rates you get for providing liquidity (farming). But I guess that can be good, because not a lot of people are going to be in the pool. I'm using https://reactor.starport.services/terraswap and https://drive.google.com/file/d/1Wtr59AJEZsyTX6hsnrhby3N-d3YeEDCV/view?usp=drivesdk to estimate the rates - they both say about a 35% annual rate on the 7 day average. I'll try to make sure I'm earning at about that level.

Right now I'm bullish on LUNA, so this keeps me exposed to it, as opposed to farming against a stablecoin. My other option is to convert it all to bLUNA and get paid to borrow UST against it. I can only "safely" borrow against it up to 45% and I only earn interest on the amount I borrow, not the (much higher) collateral amount. Safely means at long as the amount doesn't fall more than 25%, I'm safe from liquidation before I repay done of my loan, which in crypto means I can't really sleep well at night because that's a drop that can happen over a few hours. I can put my borrowed UST in Anchor Earn to get an additional 20% and the current rate I get paid to borrow is about 35%. So by my back of the hand calculation my full collateral amount * 45% (the amount I can borrow) * 55% (35% interest earned for borrowing + 20%) = 25% APR if I employ the borrow and deposit UST strategy. So I think if the rate I get paid to borrow goes above 80% (which it was before LUNA started going on a tear), I'll consider using this strategy rather than farming.

If I think things are turning bearish, either because of LUNA in particular or the whole market in general, I will pull it all out, convert it to UST, and just deposit it to safely earn ~20%. Safely in this case means the Terra ecosystem and Anchor Protocol work programmatically as they're supposed to and UST maintains it's peg. The reason I'm bullish is because the overall crypto market seems to be doing well and I like LUNA's tokenomics - the ecosystem is growing and the more UST that's issued, the more LUNA gets burned to issue it.

I think I want to increase the value of my LUNA holdings by 25% and then I'll start looking for other things to diversify into. This all sounds really complicated but i think I understand what I'm doing - which is usually precisely where I get myself into trouble.

[djdhrubs]

Good stuff.

I exited my liquidity mining on Pylon today (farming MINE-UST) and just shoved all the UST into Anchor. I can't chart Mine anywhere, which is part of the reason I don't wanna just mine it forever.

Have you explored the Solana ecosystem yet, specifically Mercurial Finance? They have formed an alliance with Terra and you can stake/ mine your UST there for 31% right now (earning mainly MER token rewards but also a small percentage of LUNA). Earlier in the week it was 56%. A week or so ago it was 25%. 

I started staking some UST there a few days ago, and am selling my rewards daily into USDC on Raydium (linked to Solana) and putting that same USDC into the same farm as the UST, on Mercurial Finance.

You have to bridge your UST over to Solana, from Ethereum network to Solana (not from Terra network, which apparently they will offer later). It's fairly straightforward though. 

So basically right now I have equal amounts of stablecoins in Anchor protocol ,and Mercurial Finance. Spreading the risk etc, even though Mercurial is currently offering more rewards than Anchor.

In relation to Anchor, I stupidly didn't sell Anchor into UST a few months ago when price was much higher. I regret that, but at the same time wouldn't bet against Anchor making some kinda insane run up. Look at the Luna price chart and see how low it was several months ago before it finished accumulation and then exploded.

Edited August 1, 2021 by djdhrubs

[brianwalden]

So far, my own calculations are telling me I'm making about 20.5% APR, but that was over the weekend, which is typically slower in crypto. I'll keep at it and see if I get closer to the expected 35%. At least I can see that I'm making more coins while at the same time capturing LUNA's rise in price.

[JASCoder]

3 minutes ago, brianwalden said:

So far, my own calculations are telling me I'm making about 20.5% APR, but that was over the weekend, which is typically slower in crypto. I'll keep at it and see if I get closer to the expected 35%. At least I can see that I'm making more coins while at the same time capturing LUNA's rise in price.

Good to know Brian-san.

I'm looking to try this out too soon, as I have some LUNA sitting idle on an exchange.

FWIW, after a week of staking/farming on pancakeswap, so far it's showing around 55%, but that's not accounting yet for their higher fees to do anything but just watch it. I did add some more value after initial testing, so we'll see...

[brianwalden]

3 minutes ago, JASCoder said:

Good to know Brian-san.

I'm looking to try this out too soon, as I have some LUNA sitting idle on an exchange.

FWIW, after a week of staking/farming on pancakeswap, so far it's showing around 55%, but that's not accounting yet for their higher fees to do anything but just watch it. I did add some more value after initial testing, so we'll see...

Yeah, the fees are often hidden, or at least hard to track, and they just eat up your profits. Everyone warns about impermanent loss, they don't warn about the fees.

[brianwalden]

In just one more day, my calculated APR has jumped up to 31% - I'll check back in when I hit 7 days, but this leads me to trust the sources I linked to above.

[JASCoder]

On 7/28/2021 at 6:54 AM, brianwalden said:

Just make sure you use the bridge, you'll lose your coins if you just try to send them directly.

FWIW - I transferred LUNA from Bitrue to my TS wallet directly, with no issues (fast too). 
Were you under the impression that should have failed ?

[brianwalden]

3 hours ago, JASCoder said:

FWIW - I transferred LUNA from Bitrue to my TS wallet directly, with no issues (fast too). 
Were you under the impression that should have failed ?

That depends on which token Bitrue uses. If they use the native token on the Terra chain, then there's no problem. A lot of exchanges will use the ERC-20 or BEP-20 versions of the token. That's where you have to use the bridge.

[brianwalden]

16 hours ago, brianwalden said:

That depends on which token Bitrue uses. If they use the native token on the Terra chain, then there's no problem. A lot of exchanges will use the ERC-20 or BEP-20 versions of the token. That's where you have to use the bridge.

I should add, if they're using actual on-chain LUNA, the deposit address will start with "terra" instead of "0x".

[brianwalden]

This is a pretty good overview by Coingecko:

https://www.coingecko.com/buzz/yield-farming-on-terra

[brianwalden]

Ok, so running my own numbers it looks like I'm making about 33% APY in the LUNA-bLUNA pool calculated by the number of coins in my share of the pool, not dollar value. The site I linked to shows 38% as the 7 day moving average. I'll take it. LUNA's price is slowly deflating after its big pump. I'll give it some time to figure out what its going to do, but if I get to the point where I think it's going to keep going down, I'm going to take profits - a rarity for me.

[MonkeyBusiness]

@djdhrubsI have written to you here, as not everyone may be interested. So regarding the SPEC tokens, I found the following:

Quote

To prevent token dump on platform launch, SPEC token rewards will be locked and released gradually over 50 days. All your rewards are automatically staked in gov vaults to earn gov income.

With the other pairs (ANC/MIR) you can probably choose:

https://docs.spec.finance/protocol/vaults

 

[brianwalden]

This is a good overview for getting started with the Anchor Protocol.

https://medium.com/everstake/how-to-get-started-with-anchor-protocol-a-step-by-step-guide-and-yield-farming-strategies-f9a94f83ce1f

Edited August 11, 2021 by brianwalden

[brianwalden]

I've still been farming LUNA-bLUNA this whole time and it's been great. I capture all the gains that LUNA has been making plus I earn more from all the trading fees.

[brianwalden]

Terra World, the first metaverse launching on Terra, is going to be having a presale of TWD, the main token used within the world. It will be conducted on the Pylon gateway.

Starting Aug 22, 2am UTC: sales open for MINE (Pylon's token) stakers.

Starting Aug 25, 2am UTC: sales open for anyone.

In both cases TWD will sell for .01 UST each.

I believe they will also have the Pylon pools where you can lock up UST for 6, 12, or 18 months to earn TWD and then you get all of your UST back when the term is over.

https://medium.com/@terraworldoffice/terra-world-token-twd-scheduled-to-launch-on-the-pylon-gateway-updated-august-18th-8b97d2c9b389

@djdhrubs I think you already use Pylon, you might be interested.