DeFi Route 2 Fi’s pseudonym expert (@ Route2FI on Twitter) shares design details of the most impressive protocols on Terra (LUNA) and views on the protocol’s prospects
Crypto analyst and DeFi educator @Route2FI claims that the LUNA token of Terra blockchain might be undervalued and describes its most interesting protocols.
“Lots of opportunities to earn returns” on Terra
Mr. @ Route2FI is sure LUNA’s price has room to increase, but admits his opinion may be biased due to personal enthusiasm for the Terra ecosystem.
He displayed the most interesting protocols of Terra’s family. The first one is Anchor Protocol, which allows users to stake UST, a U.S. Dollar-pegged stablecoin by Terra with an eye-watering APY of 19.5%.
Besides betting for passive income, incredible returns can be achieved by borrowing beTH and bLUNA using Ether and LUNA as collateral. Opportunities to guarantee SOL and ATOM will soon be added to the toolbox of this protocol.
On average, the LUNA/bLUNA conversion rate is 100:105 by press time, so a farmer receives five “free” LUNA tokens while interacting with the protocol.
Bright future or big risks?
If the profits are immediately redistributed, performing the procedure described by Mr. @ Route2FI 8 to 10 times could double the initial investments. At the same time, the expert warns of the high risks associated with this style of “yield farming”.
As covered by U.Today previously, Terra (LUNA) is one of the most overhyped L1 networks of late Q4, 2021. Galaxy Digital CEO and seasoned Bitcoin (BTC) proponent Mike Novogratz claimed that LUNA should replace LTC on CNBC’s tickerboard.
At the same time, Terra’s LUNA and UST token ecosystem has notable vulnerabilities in terms of regulatory and technical issues.
