LUNA loan experiment

I just earned 27 $LUNA that can be bonded and loaned against.

I'm going to try an experiment this week:

1. bond the $LUNA
2. use it as collateral for an $UST-loan
3. swap the $UST for $LUNA

lather. rinse. repeat.

How profitable is this endeavor? Let's find out. 

Okay. The first thing I learned: I need about 2 $UST in reserve to pay for transaction fees and loan-tax, so, I'm thinking keeping 10 $UST in reserve.

First transaction: bonding, then using that as collateral for an $UST-loan.

I bonded 27 $LUNA -> 26.99 $bLUNA

Then, because I didn't have enough $UST to pay for transactions, I took out two loans in succession:

• first: 190.5 $UST
• then with enough $UST in reserve: 116.3 $UST

I went to TerraSwap and swapped 

290.05 $UST for 19.89.0006 $LUNA

spread: 0.000575 $LUNA

commission: 0.060165 $LUNA

tax: 0.105158 $LUNA

with a 1.516598 $UST fee

Let's lather, rinse, repeat.

Off to the Anchor portal

I bonded the 19.89 $LUNA for (nearly) the same amount of bLUNA, which I then provided as collateral for an $UST-loan (you see how this is playing out, right?)

I borrowed the maximum amount allowed (because why not!): 220 $UST

tx fee: 1.41 $UST

Back to Terra Swap. I swapped

219 $UST -> 14.94226 $LUNA

spread: 0.000325 $LUNA

commission: 0.045199 $LUNA

tax: 0.079 $LUNA

fee: 1.25 $UST

Let's go back to Anchor to bond this swapped $LUNA.

Okay, bonded 14.94 $LUNA for (about) the same amount of bLUNA, which brings my loan-parity to 45% (safe).

• Do I stop now?
• Should I swap loaned $UST for $MIR and $ANC as well as $LUNA? 

I'll borrow $UST this one last time for bonding $LUNA then do other experiments next week.

... but here's a point to consider:

• net APY for loans against bLUNA is 26% (it used to be 110%)
• net APY for MIR-UST LP is 50%

I may have been better served buying and farming $MIR (or even mAMC).

We may give this approach a go next week.

Borrowed: 92.861 $UST

tx fee: 0.738 $UST

Going to Terra Swap.

Swapped 89.11071 $UST -> 6.168256 $LUNA

spread: 0.000054 $LUNA

commission: 0.018658 $LUNA

tax: 0.032612 $LUNA

fee: 0.561125 $UST

To complete this experiment, I returned to Anchor, bonded 6.16 $LUNA for an equivalent amount of bLUNA which I provided as collateral to cover the prior $UST loan.

Day-after result:

I bonded the original 27 $LUNA earned as bounty to borrow a total of 619.718 $UST, from which I swapped to an additional ~41 $LUNA which was bonded as collateral to cover the above loan. That loan has a net payout (gain) of ~25%

Not bad at all.