[Opinion] bLUNA-LUNA LP and two others

Archive
1

Currently, bLuna-Luna LP has the second-largest liquidity and largest trading volume in Astroport.

Adding bLuna-Luna seems to encourage Luna loans from Mars.

They are strong holders and are willing to use leverage.

Since Anchor Protocol has fewer borrowers than collateral providers, this may benefit Anchor Protocol as well.

Currently, we need to encourage the active use of Red Bank’s assets by adding various assets in addition to increasing the collateral ratio.

In addition, ASTRO-UST, MIR-UST has good trading volume and liquidity. It seems that these three LP pairs must be added.

image
image2113×1083 167 KB

Personal opinion : At the beginning of the project, it is very difficult for outsiders to identify potential risks. The Core team and developers who have long considered and studied this project need to lead the community to some extent.

Thank you for reading it. Let’s talk freely.

6 Likes
2

There is absolutely no reason not to implement this pair on the fields of Mars, your right it would help Mars and Anchor protocols as well is Terra itself.

2 Likes
3

I agree with your idea re bLuna. I would also love an Astro leveraged farm. The Mir-UST leveraged farm already exists, though - unless you are referring to a “bear” leveraged position.

4

Once depositing bLUNA elsewhere you lose out on the UST rewards no?

In that case I would prefer to see stLUNA/LUNA pair as the staking rewards auto-compound on stLUNA.

Though I agree, from a liquidity standpoint bluna/luna makes sense.

5

Technically no. bLuna only loses the staking rewards when locked into the Anchor contract. I believe the bLuna in the Astroport pool is acquiring UST theoretically redeemable on Anchor. I think the obstacle is implementing the code to redeem the UST and where to divert it (Astroport may already have plans on this, no clue just a smol person perspective).

Further, I believe you collect your staking rewards for stLuna on Lido (not positive) whereas the staking rewards autocompound on xLuna.

6

Addendum, lol: when locked into the Achnor borrow contract the rewards divert to Anchor and LunaX autocompounds.

7

good to know about bLUNA!

as far as stLUNA it auto-compounds and it appreciates similar to aUST vs UST.

all three of these derivative LUNA LPs (bluna/stluna/lunax) have significant liquidity. Looking at AAVE on Ethereum network they actually have quite a lot of LPs from Uniswap you can deposit as collateral.

8

Lol, first words on Lindo’s stLuna blog (stLuna: The Next Generation of Liquid Staking on Terra | Lido) is that it auto-compounds - thanks for the correction.

And totally agree on creating markets for the derivates. Didn’t mean to infer bLuna at the exclusion of stLuna. I do wonder if the UST yield of bLuna (as opposed to the auto-compounding of LunaX and stLuna) could allow for different Fields’ strategies.

9

Lol, first words on Lindo’s stLuna blog (stLuna: The Next Generation of Liquid Staking on Terra | Lido) is that it auto-compounds - thanks for the correction.

And totally agree on creating markets for the derivates. Didn’t mean to infer bLuna at the exclusion of stLuna. I do wonder if the UST yield of bLuna (as opposed to the auto-compounding of LunaX and stLuna) could allow for different Fields’ strategies.

1 Like
10

Would you suggest putting up the LP tokens themselves as collateral?

Or do you just mean to open up a leverage strategy in Fields?

11

I would prefer LUNA - LUNAx since you can leverage on the staking rewards. And it would nicely marry with the addition of LUNAx as collateral : MRC-7: New Asset Listing: LunaX Token

Why I prefer LunaX vs stLUNA is because I do not like the monopolistic behavior of LIDO.

12

More on this:

https://twitter.com/justinlunaorbit/status/1513254506829545475?s=20&t=X4DddjsnFSb9gupkkRf9XQ