2023-11-05 ROAR/LUNA-THANG! row 14

Let's do the PRISM-THANG!

... starting with the ROAR/LUNA-THANG! on @terra_money.

I record the prices and amounts from $ROAR and $LUNA from @astroport_fi into my SPREADSHEETSZORXEN!

2023-11-05 ROAR/LUNA-THANG! row 14

ROAR/LUNA-THANG! 

• no swaps: gathering 20 rows of data FRIST! #FRIST

ROAR: 0.00000

LUNA: 0.0000

LP: 52521.876

TVL: $85.18 TVL EMA-20: n/a

ROI: -12.81% APR: -126.37%

PRISM explained.

Daily cryptocurrency income report, 2022-05-23

Daily #cryptocurrency income report, 2022-05-23: $710.25*

It's been a while since I've done this report, so: let's do it.

*does not include auto-restaked yields nor x-token multiplier gains

Funny how, that when people decide to be bullish on a protocol, e.g.: Terra, the value of that protocol's tokens go up.

Funny how, that when I put weeks of work into this protocol, knowing the eventual tide-turn in favor of Terra would come, that I make $700 in one day from it.

Terra. Luna. Strategy.

Thesis

Okay, Terra: $LUNA and $UST. The crash happened, but that's not a rugpull, not by definition.

Now, @stablekwon says $UST is not the answer. When Terra moves off $LUNA and $UST to something else,

... that is a rugpull. By definition.

So, I froze there for a second. But: this is going to happen.

It doesn't matter what happens: it matters what I do.

This transition off $LUNA / $UST is going to take a month, more or less? to find a viable alternative.

That's my window of opportunity.

Let's get to work.

Antithesis

Okay.

Terra.

$LUNA.

The price-variability seems to have settled for now, with Price Impact below 1% again.

How are we going to do this, folks?

*everybody stares at me, waiting.

Wut.

Okay, $LUNA's back to high volatility: let's play a game.

I want you to pretend with me that the crash didn't happen.

Why?

Because I have 4M $LUNA. How would you manage 4M $LUNA pre-crash?

For me (and perhaps ONLY for me), the answer is: "the same way I'll manage $LUNA now."

Continuing this game, how will I manage 4M $LUNA now?

4 domains, I'm thinking:

1. $LUNA-> $cLUNA arb
2. $LUNA-> $bLUNA arb
3. $LUNA-> $LunaX arb
4. $LUNA, no arb

It's overly simplistic, but it captures the 4 domains of @prism_protocol, @anchor_protocol, @staderlabs, and misc.

Okay, but arbs are tricky things on Terra, particularly. Why? because they take the $LUNA-in-transition out of circulation for 21 days. You do an arb, you're COMMITTED, baby, and you get nothing for it for those 21 days. So, I say 'arbs,' but these arbs must be handled with care.

So, my 'handle with care'-approach is as follows:

• per domain, I allocate 25% of the $LUNA for arbs,
• per arb per domain, I allocate ~5% $LUNA/day for arbs

Thus we (re)born infinite $LUNA wells for each arb-type.

Let's do the math. ... (pause)

Arbitrage

Continuing this exploration. Here's a conundrum.

The $bLUNA -> $LUNA 21-day burn mechanism still assumes a $bLUNA - $LUNA peg, 1-to-1.

But trading $LUNA for $bLUNA has a very different narrative. That trade is ~ 20-to-1 in Terra now.

So the $bLUNA burn sucks.

This story is repeated for $cLUNA and $LunaX as well. The burn mechanism 'works' as before (1-to-1+ε), but the trades are terribly slanted away from $LUNA now. 

Rekt

Rekt

Hey, folks, I'm rekt.

Let's face things squarely. $LUNA is at sh-tcoin prices. But is $LUNA a sh-tcoin now?

Some of you'll say 'yes,' and wash your hands of the whole affair. And that's fair.

But what if.

But what if the answer is 'no'?

I'll explore the latter option, folks.

Why can I explore the latter option?

Because I'm rekt.

If there's no salvageable position, then I have freedom to explore any option, and if it doesn't work? I'm still rekt.

So. What.

I have complete freedom now. I like it.

I'm rekt. And I'm free.

See you in the reports.

Mirror

I'm liquidating myself in @mirror_protocol.

This'll hurt.

But @mirror_protocol is capital-preserving, and now is not that time. Now is the time to strike while the iron is molten lava on the floor.

Bye, @mirror_protocol. I loved ye well. 😢

Steps for liquidating below.

Okay, let's liquidate $mDOT δNeutral position and see what comes out of it.

Step 1: On @mirror_protocol observe the shorted amount: 0.75 $mDOT 

Step 2: Withdraw that amount from your @SpecProtocol or @ApolloDAO. 

You may need to play around as the autocompounder may leave you with excess that you can grow for when the markets returns to sanity.

So, I'll leave like $5 or whatever minimum I can on the short side, too. 🤔

Step 3: cover the short with the $mDOT from the vault.

Step 4: record how much we recovered. 

On the short-side we got 9.4 $aUST

On the long-side (check back one tweet), we received 8.4 $UST

Worth it?

Nah. Transaction fees summed to ~$1.50. Let's liquidate the big fish first.

So we're not going to go with $mDOT (now), but this was instructive. Always try something with a smol amount FRIST!

So, procedure established. Now let's do this procedure on the big fish, which are: $mHOOD, $mNIO, $mNVDA, $mMSFT, and then the smaller fish come in.

Okay, so, let's start with those four mirrored assets. I have 0 savings ($aUST) and 10 $UST

... and I'm so tired. Got this head-cold thing going on, and a cough triggering an acute headache.

BLEH!

OKAY! SOLDIER ON! Let's SNARF the assets and see where we end with our savings.

First, biggest asset: $mHOOD

Short-side farm: 14.5 $mHOOD, 190 $aUST

Long-side vault: We'll take out 14.3 $mHOOD

Savings earned: 179 $aUST, 133 $UST

I was going to keep positions open, but I see they're charging a closing/adjustment fee, anyway, so I'll just close them going forward.

TERRA: 'Dry powder'

"Dry powder"

Let's talk about bonded assets on @anchor_protocol for a second. I got this idea from where @DeFinalFantasy gets his dry powder on the Terra blockchain.

Okay, there are several different ways to use bonded assets (like: $bLUNA), e.g.:

• bLUNA-LUNA LP
• bLUNA collateral @anchor_protocol borrow
• bLUNA autocompounding vault @NexusProtocol 
• nLUNA-PSI LP
• ... and 'dry powder.'

Each * CAN be a thread. We'll focus on the last one.

So: what is 'dry powder'?

$UST.

#thatwaseasy 

How do you get dry powder? That's easy, too:

1. buy it 
2. swap for it (but my precious LUNA!?!?!)
3. borrow it on @anchor_protocol borrow (but you have to pay it back, maybe, someday).
4. the fourth way @DeFinalFantasy showed me.

Let's focus on that fourth way. Getting protocol tokens on Terra is easy: you stake or you LP-up that protocol token, usually with $UST, and you get more of that token. This model is repeated vociferously throughout the blockchain.

Except for $UST, so I'm always $UST-poor. 😢

So, I'm $UST-poor? The fourth method: @LidoFinance TO THE RESCUE!

Lido allows you to 'BOND' your (underlying) assets to (bonded) assets (implicitly: with them).

You can go to their main page to see what's the rate of return for each asset-type.

Okay, but that's @LidoFinance ... who cares?

Well, I do, and everybody on Terra does, because Lido is the platform that owns the bonded assets on Terra.

You wan' proof? 😎

Let's go to @anchor_protocol bAssets page. What do we see? 

Our bonded assets generating $UST. SWEET! 

As you see, I'm accumulating a little bit o' dry powder with my little bit o' bonded assets. The more bonded assets you have lying around, the more dry powder you accumulate. It's that simple.

Now let's talk

• advantages,
• disadvantages,
• alternatives.

Advantages

You have $LUNA lying around, doing nothing.

You have $bLUNA lying around, THE EXACT SAME THING (almost 😅), earning you $UST at 7% (now).

NO BRAINER! ... maybe.

Disadvantages

There're downsides.

1) You have to BOND your asset, meaning arbitrage opportunities (at a usual 20%+ gain) basically evaporate.

2) You have to have your assets LYING AROUND, LOUNGING ABOUT, DOING NOTHING!

These are very serious concerns for me, a yield-farmer.

Alternatives

1. You can get dry powder in (a very few) other ways than bonding assets
2. You can do other things with your assets that get you better rates of return.

Let's break down these alternatives.

Alternative methods to get $UST:

• @anchor_protocol EARN at 18%.
• @Reflectaverse $rfUST which I measure to be 31%. Not bad, actually! 
• @SpecProtocol 180-day locked $SPEC stake at 14%. m'kay
• @RVRSProtocol $RVRS stake at '400%,' ... they claim. My measure is ~24%.

There are a couple other alternatives and two alternate $UST capital-preserving approaches:

1. @TeamKujira pays 12.5% on ACTIVE $aUST bids
2. @WhiteWhaleTerra pays ~0.5% over @anchor_protocol EARN

Capital-preserving δNeutral strategies:

1. @mirror_protocol
2. @ApertureFinance 

So, dry powder.

The thing is, it's a trade-off, right? You make 5-20% $UST on your asset, or you apply your asset to grow many (many, MANY) times faster, and sacrifice the dry powder.

I'm choosing the latter for now, but it's good to know I can do the former down the road.

Terra

I was asked: 

"geophf, where do I invest on the Terra blockchain?"

Woo, boy.

Here's my answer.

You see me talking about @mirror_protocol a lot, but the thing is, right now, none of the short yield farms are above 20%, so I'm HODL'n right now and not putting money in.

So, an alternative to @mirror_protocol is @ApertureFinance, that have capital-preserving yields (way) above 20%. They do require a 2000 $UST minimum deposit per asset; not everyone has the wherewithal to do that. 

Both @mirror_protocol and @ApertureFinance are δNeutral CAPITAL PRESERVING protocols, which I love, a lot, but they don't grow your worth, they preserve your already-accumulated worth. So, how do you grow your worth on Terra? 

I'm going to say this, and be done with it.

On the Terra blockchain, the ONLY thing that matters is:

$LUNA

Your $LUNA bag determines your Terra happiness.

Now, how to use $LUNA? Staking is the worst option I find, and liquid staking, or (leveraged) LPs are the best options. So, I have $LUNA everywhere, but the protocols I'm hodl'n and watching are:

@mars_protocol and

@staderlabs 

Let's talk about @mars_protocol for a second.

Since @mars_protocol has autocompounded LEVERAGED LPs ('fields') their returns are the crazy-best on Terra, particularly, right now, their MIR-UST leveraged LP at 125%, but their LUNA-UST leveraged LP has the best LUNA returns.

Wow!

Let's talk about @staderlabs for a second.

How to use $LUNA? LUNA-UST LP has IL, so is not for me.

@staderlabs turned $LUNA staking from just straight-up terrible to one of the best, if not the best, cases for $LUNA utility. And $LunaX - $LUNA LP is IL-free with good returns!

[insert something here about $LUNA arbs, but nah, I guess: $LUNA arbs come after you have an accumulated $LUNA bag]

Okay, those are two protocols.

Here's everything, the good, the bad, the ugly, that I'm in on the Terra blockchain.

Check it out. Copy it? (maybe not?) Critique it like this: "but why don't you ..." or "don't you think ..." for a free blocc.

Now: $SPEC is doing great! and $ASTRO and $xASTRO are doing great! $PRISM is doing (not so) great! 

So were $ANC and $MIR before. 

So I don't trust any of those, the only thing, for me, to watch on the Terra blockchain, solemente, is $LUNA.

$LUNA is the sine qua non of Terra.

$LUNA goes up to $1000? It makes me a millionaire.

I'll wait, and accumulate, for that day.

Now, how do I accumulate $LUNA? I buy it, of course, but now, I only buy $LUNA at a discount on @TeamKujira (HOWTO). Liquidation fulfillment claims and $LUNA arbitration are how I grow my $LUNA bag now.

Where to invest on Terra? $LUNA.

The. End.