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Terra

Most of us are used to getting 0.05% interest from our banks, or fixed deposit rates of 1-2%. So hearing that there is a Cryptocurrency protocol that pays us an annual fixed interest rate of 20% on our hard-earned dollars sounds like an absolute scam.
 
To begin with, let's have a quick look at how banks used to make money.
​​Banks made most of their profits by taking in deposits and then lending the money out as loans, basically receiving more interest income than what they paid out. 
 
Anchor Protocol does exactly the same. The key difference is that, the deposits and loans are automatically processed by Anchor protocol’s smart contracts (Code), so unlike traditional banks, using Anchor you do not need an intermediary.
 
![Screen Shot 2021-11-04 at 22.39.09.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1638728813/Screen_Shot_2021_11_04_at_22_39_09_85cc99b9ab.png)

 I know, that still sounds too good to be true right? What’s the catch? Is this a Ponzi?  How the hell can Anchor generate and sustain a 20% interest rate? 
 
Keep it together and let me guide you to the Valhalla of Anchor protocol, the future of earning money while doing absolutely nothing.
 
As you read in our previous article, Anchor Protocol has 3 main parties (if you didn't, go and check it out [Link](https://www.tldr-crypto.news/post/fuck-banks-love-anchor))
 
Lending → You deposit your $UST and earn between 19.5% and 21.5% interest per year
Borrowing → You deposit $ETH or $LUNA as collateral and borrow up to 45% of what you deposit
Anchor yield reserve
 

# Let me illustrate this for you:


![thumbnail_mario-luigi.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637013175/thumbnail_mario_luigi_e5f7a55d63.png)

 
We have Mario the lender that is sick and tired of depositing his money at the Deutsche Bank. He buys 10000 UST (Stablecoin dollar)  from an exchange like Coinbase and deposits (Stakes) it into Anchor Protocol.
Now Mario is happily earning 2000 UST (20%) a year while he goes and saves peach from Bauzer.
 
Mario is obviously not alone, his brother Luigi the Borrower does not want to sell his LUNA tokens (Cryptocurrency) because he is hoping that they will increase in value. Luigi still needs some extra cash to buy a new Fiat 500. So Luigi the Borrower deposits his $10000 worth of Luna into Anchor and uses it as collateral to borrow 4500 UST (you can't borrow more than 45% of the value of the collateral). Anchor also offers other incentives to borrow, but I will cover that in a different article.
 
 

# But wait a minute ser how does Anchor Protocol actually pay Mario 20%?
 

Luigi has to pay a variable interest rate on the credit he took out in order to help maintain the interest rate.  The rest of the 20% that Mario is collecting is paid by Anchor Protocol since it uses Luigis deposited Luna (the collateral) to earn staking rewards. Individuals that facilitate the functioning of a Proof-of-stake blockchain are paid using transaction fees charged to the blockchain users. This means that the individual will be rewarded with more coins (Luna) in staking rewards for the contribution to the network. On the Terra blockchain, the rewards currently pay 3% per year.
 
Ultimately, the goal of Anchor Protocol is to make sure that the revenue collected from staking the collateral and collecting the interest  on Luigis loan, is enough to pay Mario.
 
Okay, but what if there are more Marios than Luigis? Can this be sustainable? Is there enough money to pay the depositors with the revenue generated through the lenders?
 
Anchor has a mechanism called the utilization ratio. To keep it simple, it is the difference between borrowers (Luigi) and savers (Mario). 
 
The interest rate adjusts automatically depending on how many Marios deposited and how many Luigis are borrowing. It is the same as how Central Banks change interest rates to stimulate the economy in bad times or slow it down to avoid it from over heating. But remember, Anchors system is based on mathematical code while the Central banks can be influenced by politics.


# Now let's get to the best and last part, Anchors yield reserve:


We only need the Anchor yield reserve when there are not enough Luigis borrowing money to buy new cars.  In that case, Anchor Protocol has to step in and use its reserves to pay all the Marios. This might happen if we have 10 lender Marios and only 5 degen Luigis. So in times when we have more people lending the yield reserve decreases and when we have more people borrowing the reserve increases.
 

# What happens if the yield reserve runs out?


This has happened before in July 2021 after the May crash. Do Kwon and Terraform labs stepped in and saved all the lenders asses by filling the yield reserve with 70 Million UST. For now that should be enough UST $$ to keep Marios annual passive income safe!
 
We Degens have to keep on working to achieve crypto mass adoption to truly make Anchor Protocol the go-to savings solution for everybody.
 
Arrivederci Banks!


Cryptocurrency that pays 20% interest rate per year. 

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20% annual passive income on Anchor Protocol?

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Fantom

It's nature. I see high APYs. I must ape.

And... It worked for the first OHM fork on avalanche, so why wouldn't it also work on the first Tomb fork? 

Aping first is how most degens think. And I love it. 

The vision of finally buying that Lambo is just too tempting to ignore. As usual, I burn my fingers. 

![DeFi learning Game.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1640196025/De_Fi_learning_Game_24921db0d7.jpg)

But the difference is: I don't stop here. 

Because I'm an ambassador of degens – I'll dig deeper and deeper until I can explain the protocol to a fellow degen.  
 
 After this article, you will: 

- Understand the nature behind the Seigniorage token
- Know what you must pay attention to before aping. 
- [Jump on my Twitter](https://twitter.com/MrDiamondHands4) and treat a follow


# Tomb.finance 

Tomb aims to bring liquidity to the Fantom Network. 

Becoming a Token that's equally worth 1 FTM. (Or 1:2 after recent changes) 

> "Ser wtf – What do we need stoopid $TOMB liquidity for?"

The idea is to keep the network healthy. 

Healthy means there's liquidity for transactions. 

Because it's all about that native token. 'cause FTM powers the web. 

The computers (Validator notes) that build the network are rewarded with FTM tokens. 

Think of it as a "thank you" present for keeping the network secure and the price nice and low. 

![3.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1640196542/3_8fc202368e.jpg)


But FTM is not unlimited. After 3.175 billion $FTM are printed. 

It's done. Over. 

So, imagine FTM supply is gone. 

Everyone hodls. 

And then you want to some $FTM to your internet-fren? 

This is where Tomb finance comes into play.

Instead of waiting for FTM, you take the TOMB token instead.

![6.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1640196542/6_a9e515b0bb.jpg)


> "Okay, enough of that. Show me where the money is!"

Easy. Easy. Tomb is quite complex. 

We're not talking about a beginner's play. 

That said – let's dive in. 
 
The "expansion" phase powers the launch of the network. New tokens enter the market. 

But where do they go? Can I pick them up? Are they distributed to the TOMB holders? 
 
Great question, anon: to answer it, look at the tokenomics. 

Like rebase mechanism – the contract is programmed to decide every six hours (one epoch). 

If the price of TOMB is over the peg – more TOMB token is printed.

If it's below, TBONDs are available at a discount. 


![7.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1640196542/7_8fbb9e73d5.jpg)


# The ecosystem


TOMB has three different Tokens: 
 
** $TOMB** - The Cash token. Usually, these tokens are pegged to stable coins. 

Not TOMB tho – they rely on the success o the whole network and peg to the $FTM native token. Pretty awesome. 

** $TSHARE** – The Share token. This token is your entry ticket to receive a portion of all the new TOMB distributed to the market. 

The value of the Share token is primarily a reflection of the confidence in the ecosystem. 

** $TBOND** – The bond token. Only if the value of TOMB falls below the peg. Tbonds are available. You can later trade Tbond 1:1 against Tomb. 

![5.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1640196542/5_cb20b2313d.jpg)

> "Okay, it's rebased mechanics on steroids. I get it – SHOW ME THE MONEY."

Okay, you have a few options here: 

![8.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1640196542/8_e64be25bef.jpg)


Stake single-sided Share token – if the token is over the peg (and the price is not too high), this is probably the easiest option to earn the CASH token.
 
This option will lock your Tshares for 36 h – if you don't want that, look at option 2.
Provide liquidity: 

FTM – TOMB: Get giant APYs without impermanent loss. In theory. 

If FTM goes up, TOMB goes up. 

And the other way around. (You earn Tshares with this strategy) 

The APR on this strategy is insane. 

But does that mean we can jump on the bandwagon and ape into every Tomb fork there is? 
 
Hell no. 

In most cases, the basic model won't work. 

That's what I found out after aping into the first TOMB fork saw. 

The goal is to provide utility to the community.

TOMB is doing a fantastic job.
 
Suppose you copy the code onto other chains. You leave out the fact that the community is not copyable. 
 
In that case, you had no other reason to farm the SHARE token other than profit. But what if the CASH token falls under the peg? 
 
 Then money starts to leave the protocol – the CASH token dumps even more. People who buy the bond better be diamond-handed. 

"Diamond-handed?"

Exactly. 

Because the cycle continues. 

Under the peg, SHARE no longer mints CASH token = people dumb SHARE. 

The incentive to buy CASH to farm SHARE is dead. 

"Ser, this is getting complicated – you said degen friendly. ☹" 

You're right. 

To sum it up:
 

Great tokennomics are not enough. 

It's the community that is crucial for success. 

I see this every time.

 People try to design a money-making machine – because it attracts people. Then try to give utility to the community. 

In most cases, just dumb on their asses. 

At DegenHouse, we do it the other way around – we provide value first. 

Gather passionate people and then build a money-making machine from there 😉. 

Curious? Join the Discord! 



This guide explaines TOMB finance in the most simple and degen way possible. 

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I lost $2k on a Tomb fork, so you don't have to.

Let’s be honest. Ethereum is making it hard for new people to enter DeFi. 

According to maxis:

>  Not willing to pay for every transaction? NGMI. 

![2.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1639570777/2_3e67541318.jpg)

But guess what?

I see myself as a gentleman of smol degens – always looking for new opportunities. 

A real Multichain maxi. 

And lucky us - there are Layer 1 Blockchains out there that make DeFi nice and easy. 

In this article, I will lead you through the FANTOM Network and why I think it’s a decent choice for future Degen plays.

![4.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1639570819/4_607680f7b9.jpg)

# The Fantom Network

First. Fantom is not a Blockchain 😱. 

I know that sounds scary, but Fantom is a Fag. Sorry. A Dag. 

“WTF are you talking about dags and fags again” 
 
 Well – I’m not trying to sound smart here, but this is important. 

Because. At least in DeFi. 

Layer ones are compared between three things: 

1.	Speed 
2.	Cost 
3.	Experience

After all, you want a quick and engaging experience without losing money. 
 

And *surprise* Fantom is doing an awesome job with all 3 of them. 

Because of the Directed acyclic graph. Short DAG. 

![3.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1639570792/3_898ae98659.jpg)

# The Network Setup 

Most Blockchains are designed to produce one block after the other. 

Meaning, we need to wait for the previous Block to be mined – to create a new transaction. 

This slows down the processing speed of the chain, and for us (impatient degens), it's really not that comfy.

![5.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1639570834/5_41a75fa18c.jpg)

Fantom or any other kind of Dag - allows every connected computer to handle transactions. 

Making the network a lot faster than the first approach. The main reason why the Network is great for the average DeFi degen.  

The way of communicating is very similar to the Avalanche network, where the operating notes are chatting about recent news to make information spread like a wildfire in hot summer California. 

Go check out the [Avalanche article](https://www.tldr-crypto.news/post/why-avalanche-is-the-superior-layer-one-blockchain) if you want to know more about this.  

![6.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1639570848/6_adc373a434.jpg)

> But Ser, why isn't everyone using a Dag then? 

Well - to get this speed and low cost, the network needs to cut back on security. But aping into freshly launched projects with 10 trillion APY does not scream safety to me anyway, 

# The Fantom Experience   

Fantom network is EVM compatible. That means it’s very easy to use, if your funds are sitting on Avalanche, Ethereum, or even Binance Smart Chain. 
 
 I think being able to have a smooth relationship with other networks is mandatory to attract the degen horde. 

So good job Fantom. 
 
➡	 Make sure you’re not sending the ERC-20 version of the token though because it may be stuck in the network for a while. 

Another thing worth mentioning is the way the team spread the funds. 

Different from other incentive programs. Developers are being supported for deploying new stuff to the network. 

This leads to more sustainable growth over just throwing your Tokens on the DeFi users that are gone a soon as a new higher APY pool is discovered. 
 
 The smart people might notice – that the EVM works in two directions here.

 If you see a good project on FTM, you can basically [crt + c] -> [crt + v] it into avalanche for big profits.

We currently see this with kittyfinance.io who just copied the very successful model of tomb.finance and put it on avalanche.

I’m not saying this is a bad thing to do – just be careful because there’s one thing you can’t copy. 
 
 “THE FTM TOKEN” 

Yes. Correct, but I was more talking about the community and the dev team behind the project. 

These things are way more valuable than the pure Code. In the end, you should always invest in people – or … APYs so high you just can’t resist. 
 
# Branding 

Normally I don't say the branding is very influential on the success of the network. But Fantom is just too awesome. 

![7.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1639570865/7_8a6f521535.jpg)

The Fantom branding is. Well. Spooky. 

If a project is not spooky, you don’t get funds and are sent to the gulag. 

Kidding – but the community is so great, everybody building on that Phantom vibe. 

The overall experience is therefore very authentic and even fun to engage with. 

![8.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1639572221/8_5a414705fe.jpg)

#TL;DR

Pay attention to Fantom because of: 

-	Fast and Cheap network
-	Focus on innovation
-	Cool branding 

At the point of writing, Fantom seems to be undervalued compared to other L1s in the game. 


Everything you need to know about Fantom and why it's a good choice to make degen plays. Brought to you by the forefather of all DeFi degens. 

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Let's get spooky - The degen guide on Fantom

So, I’ve been doing some research on NFTs and tried to properly understand what all this fuss is about. 
At the beginning I just couldn’t wrap my head around the concept of digital collectables and why people are paying millions of dollars for it. 

Especially when it’s art that my little brother could have produced when he was 8 years old (sorry Cryptopunks). 

# What exactly is a NFT?

**A NFT (Non-Fungible Token) is a tokenized cryptoasset. It is completely unique and authentic.** 

Everyone can create their own NFT’s and sell/ trade them on the crypto market. If you have one, you can be 100% sure that no one else owns it. This means that each one of these can be assigned to a unique picture, a unique piece of art, a unique membership and almost anything you could imagine. Amazing, isn’t it? 

NFT’s have experienced a massive hype during the year 2021 and even rappers like Snoop Dogg and Lil Baby stopped recording music for a moment in order to get some of the expensive ones. 

And it makes sense, doesn't it? Having expensive art in your physical house is amazing. You can show them to your friends and family. 

But how can you flex on your millions of followers without having to post pictures of gold chains and diamond rings all the time? 
Exactly! With NFt's this becomes possible. 
 
![Dont know Bored Ape meme.JPG](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637462868/Dont_know_Bored_Ape_meme_5df1b65998.png)

I won’t dive into the explanation of ERC-721 tokens and the whole technology that ensures the authenticity of NFTs. You are degens and you either know this already or you don’t care. Or I’m just too lazy (Go to Binance Academy). 

The important takeaway here: 
With this technology it’s possible to own a unique digital asset with a reliable insurance that only you can be in possession of it. 

Still, what is all this hype about and why are some of these NFT’s worth millions. What’s the real use case? 

In order to fully understand this, you need to know how humans work. 

# Let’s do a little travel back to our childhood:

Who doesn’t remember the good old times on the schoolyard when you used to collect and trade Pokemon, YuGiOh and other cards with your friends and classmates? 

It was all about who’s got the most powerful and the coolest looking characters. 

Did someone really care about the game behind it? No. Not at all. If you’ve got the Blue Eyes White Dragon, you’re the shit. Period.

![BTC meme.jpeg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637462914/BTC_meme_5ce24124ca.png)

There are three reasons why I’m stirring up nostalgia here: 
1) People love collecting and trading things and showing off their rarity. 
2) KIDS love collecting and trading things and showing off their rarity even more.
3) Everyone enjoys being part of an exclusive community where you own something that other's don't. 

This leads to the assumption that as soon as mass adoption hits the crypto space, NFTs will play an incredibly important role. 
And some of these NFTs will be very very valuable. 

The difficult part is to anticipate which kinds of digital collectibles are going to explode. For this it is essential that you are able to put yourself in the position of other people in order to find out what they desire. 

Now imagine that with NFT’s you’re not only able to collect things, but also interact with them on multiple different platforms. They will have an incredible amount of use cases like gaining access to exclusive material, joining private groups, the right to vote for community developments, and so on.

Considering the ongoing development of metaverses, augmented reality and crypto based video games there will be loads and loads of possible applications for NFT’s. In fact, they will play an essential role in how the internet is going to evolve. 

![NFT Zuckerberg meme.JPG](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637462893/NFT_Zuckerberg_meme_f4ee144ef5.png)

# How are you going to present your collectibles?

**Letting others know what you own is important. Very important.**

With the launch of platforms like Coinbase NFT it will be possible to do exactly that: Showing off your cool, special, rare, highly desirable, functional, awesome looking, valuable digital relics.

Twitter and Reddit also have announced that they are going to implement NFT functions. With this, everyone will be able to see and appreciate your amazing collection. 

Imagine how many girls/ boys you could get by sliding into their Coinbase NFT DM’s. If they see you’ve got a Cryptopunk it’s gonna be easy game for you. 

![Coimnbase NFT.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637462935/Coimnbase_NFT_3b4e49ba9c.png)

It is important to note that the majority of crypto ecosystems have yet to adapt NFTs. For now, they are mostly created on Ethereum, Solana and Binance Smart Chain. 

This means that we are still lightyears away from mass adoption. Soon, more and more people will get on the NFT hype train.

**And the best thing is:** 
In theory the value of NFTs should be independent of the market situation. If we’re going to enter a bear market at the beginning of 2022 this shouldn’t affect the price of most NFT’s. After all, the prices of Salvador Dali’s paintings didn’t collapse during economic crisis.
 
Still, you can’t deny that we are experiencing some kind of bubble for NFT’s so be careful. 

Speaking of paintings, there are renowned art galleries that are starting to provide possibilities to participate in NFT auctions. The König Galerie in Berlin is already doing this through Decentraland with the slogan: THE ARTIST IS ONLINE. 
	 
![NFT König.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637462995/NFT_Koenig_824be0eb5f.png)

# Gamification and how younger generations will be important

So, earlier I already pointed out that kids love collecting and showing off things even more than us. 

Right now, they are paying huge amounts of money for video game skins and other stuff like that. Why shouldn’t they pay even more for their favorite character in a future crypto game? Where this character would have enhanced abilities that help them win the game. And they will be the only ones owning it. 

Regarding the gamification possibilities of NFTS it will be vital to focus on what especially YOUNG people are interested in. They are defining the market for the gaming industry. 

![NFT kids meme.JPG](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637462959/NFT_kids_meme_b9c4a0493a.png)

You might ask yourself: How am I going to make money off this? Kids usually don’t have a lot of buying power.

The good thing: in order to make big profits the absolute price is not that important. What counts is the relative increase of price.

Imagine you’re buying a set of special skins for some kind of fighters in an imaginary crypto video game that will exist in the future. Let’s call it Assassin’s Crypt (I really couldn’t come up with a better one I’m sorry). This set contains 10000 skins and you buy 100 of them for 10$. 

After a while Assassin’s Crypt gets very popular, famous streamers are playing like crazy and buying skins that only they can own, and it's even possible to customize them individually. Kids start aping. 

If now every item in your set is worth 200$ you will make a 20x profit. What you once paid 1000$ for, you can now sell for 20,000$. Wow. 

This a simple example but it shows that with the right understanding of future processes you can make big moves. 

# Now how do you choose the right NFT's?

There are essentially two strategies that you can pursue:
1. You buy blue-chip NFT's
2. You buy future blue-chip NFT's

Blue-chip is a term that originally comes from stock market trading. It essentially means that an asset is considered a relatively safe investement as it already has established a reputation for quality and reliability. 

Examples for blue-chip NFT's are Cryptopunks, Bored Ape Yacht Club and Lazy Lions. If you buy one of these and hold them the probability is high that you are going to make big profits. The problem is that these are already very expensive so if you don't have a lot of money you should consider strategy 2. 

In order to find sets that have the potential to grow in price you have to do some research on the individual projects.

Here are some questions you should be asking before aping:
- Who is the development team? Are they anonymous?
- Does the roadmap look promising? 
- Do they even have a lot of things planned for the project? Or is it just about the art?
- Are there special benefits that come with owning NFT's from the set?
- What kind of use cases are there? 
- Are there NFT's in the set that are more exclusive/rarer than others? 
- Does the set have a good Twitter/Discord community?

If you put a little bit of time in the analysis before buying NFT's it can help you to make better decisions.
Moreover, liking the artworks of the set you're buying makes holding through difficult times much easier. 

# Possible future blue-chips

Here are some projects that I personally like that may also be interesting for you:

![SOLgods.jpeg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637005191/SO_Lgods_7e8ff1509a.jpg)

**SOLgods**

This digital art project is inspired by metaphysical artist Giorgio de Chirico and is running on Solana. The set contains 6.666 unique images that in my opinion look pretty cool. The team does a good job on mystifying the whole story behind the artworks. The cheapest SOLgod is at 340$ at the time of writing so it's already a more developed project. It is still pretty unclear in what direction this will evolve but I think there is definitely a chance that the set going to increase in value. 

![Untamed Elephants.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637005820/Untamed_Elephants_dc832b16fc.png)

**Untamed Elephants**

Untamed Elephants is a wonderful project with great potential. It is historically significant since it is the first large charity-driven NFT (with the goal to save the elephants). It features fantastic art, amazing collaborations, a non-anonymous crew, and it's a hidden treasure. At the time of writing, the cheapest elephant costs less than $200, however this may not be the case for long. The entire supply is just 7,500. So be quick. 

Be aware of the high gas fees (transaction costs) as this set is running on Ethereum. 

![Avax Party Animals.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637191423/Avax_Party_Animals_2059373265.png)

**Avax Party Animals**

These funny looking creatures are my favorite project right now! The project is running on Avax (obviously I know). The design is amazing. They have 5 different tears defined by the rarity of each NFT in the set. All of the earnings that the creators get through sale and retail will go to a charity organization of the community's choosing. The whole thing just looks like a lot of fun and I see a lot of potential in this one. Buy one in order to join the party as they are still quite cheap (at the moment of writing). 

There are many other fantastic projects that I would love to list here like The Humanoids, Jungle Freaks and BabyApes, but this would go beyond the scope of this article. Go on platforms like OpenSea and SolSea to find some sets yourself!



To wrap this up, I think that the potential of NFT’s and their implementations is endless. There is almost nothing I can think of that won’t be possible to establish in the crypto space. In one way or another. 

I hope you enjoyed this thread! This is just the first of many to come. There are so many interesting things in the NFT space that one can write about. 

Now go on and buy some NFT’s. The chance is high that it won’t turn out to be what you’ve expected it to be. But as you are degens… you will have to get used to this feeling.

A general introduction into the wonderful space of NFTs. Some tips on how to find good projects and thoughts on how NFTs are going to change the future of the internet.

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A quick introduction into the NFT space

Nowadays it’s not easy to save money. The inflation is trending up but the interest rates of bank accounts are at an all-time low and it won’t change soon. This is where Anchor steps in like

![Kopie von Modern Geometric Finance Logo.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1638729058/Kopie_von_Modern_Geometric_Finance_Logo_86308055fd.png)

Thanks to Anchor protocol you can earn 20% APY on your savings. Yeah you heard right, fucking 20%. How about that?! Sounds too good to be true? Nope, this is no scam. This is a game changer and it’s not even difficult. 

# **How to do it?**#

Buy UST (Stablecoin) on KuCoin e.g., deposit UST on the EARN-tab and literally watch your capital grow. That’s it.

![Bildschirmfoto 2021-11-10 um 21.54.44.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636577720/Bildschirmfoto_2021_11_10_um_21_54_44_a8e2cfb07d.png)
![Bildschirmfoto 2021-11-10 um 21.54.52.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636577720/Bildschirmfoto_2021_11_10_um_21_54_52_6f7f6297a8.png)
![Bildschirmfoto 2021-11-10 um 21.54.59.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636577720/Bildschirmfoto_2021_11_10_um_21_54_59_28297efdba.png)



Wait! What if there is a way to gain even more revenue. But this is only for the true Degens. 


If you’re holding ETH or LUNA you can borrow against it. If not go and get some LUNA. This is one of the most promising projects in crypto (No financial advice).

Back to the topic. You are asking yourself: “Why should I borrow UST and pay interest?” 
I tell you why:

1.	Borrowing is incentivized: means the interest you need to pay is very low 
(around 0% APR right now)
2.	You can deposit the borrowed amount in the savings account for 20% APY. 
Do the math.
3.	You could also leverage your position of LUNA. Or buy anything you want. (riskier)




# **How do I borrow?**#

Exchange your LUNA for bLUNA on *app.terraswap.io*. Then go back to anchor click on the BORROW-tab and provide your bLUNA to the  protocol. Now you can choose how much of your collateral you want to borrow (max. 60%). 

![Bildschirmfoto 2021-11-08 um 18.24.56.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636395713/Bildschirmfoto_2021_11_08_um_18_24_56_4f274e8e89.png)
![Bildschirmfoto 2021-11-08 um 18.25.10.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636395713/Bildschirmfoto_2021_11_08_um_18_25_10_989c24a24e.png)
![Bildschirmfoto 2021-11-08 um 18.25.17.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636395713/Bildschirmfoto_2021_11_08_um_18_25_17_d5df9af793.png)


Be aware that if LUNA price drops and the loan-to-value ratio (LTV) hits 60% you will get liquidated to pay you’re borrow. Worst thing to happen!!!

I recommend you to choose an LTV of max. 45% and to track the price of LUNA to prevent liquidations.

If you don’t want to manage the LTV yourself check out my article on Nexus Protocol. They found a way to prevent you from liquidations. 

**Enjoy your yield!**











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Fuck banks, love Anchor

I remember the day I first read about $TIME token. I didn’t understand how APY can be that high. **But still aped in though.**

![simpleDegen.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636245414/simple_Degen_c61b1fa1de.png)

Now. 3 months later, I wouldn’t be surprised if rebase mechanisms change the way we handle crypto in general. 

“Cool bro. But what does that have to do with me?” – I hear you think. 

To prevent you from spamming: *“How isN’t this a PonZi Ser?”* I’ll give you a degen-friendly explanation of rebase mechanism and what makes these tokens special. 

If you bear with me to the end, you will also get to know how to use them correctly. 

Shall we? 

Since ETH gas fees are a pain in the ass, I will make this article about $TIME (Copy of $OHM on Avalanche) – Avalanche is one of my favorite chains and I recommend you check it out if you haven’t already. 

This article is just my opinion. We’re called Degen-House. Please don’t take any investment advice at any $time. Especially not from degens. 😉

So, the main reason why $Time is special is: 

> It owns its liquidity in form of treasury 

The number of tokens in existence (max supply) is changing every time the rebase happens. 


![17.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636279391/17_c0e1fbcf8a.png)



Noted? Good. Here comes an example: 


The maximal supply of Bitcoin is 21 million BTC. There will never be more than that. For Ethereum, the ETH supply is unlimited. 

Wonderland TIME supply is somewhere between these two. Supply changes. 

Every 8 hours - the protocol can create (mint) or delete (burn) $TIME to influence the value of the token. This leaves the opportunity for the protocol to make profits. Big profits. 


![RebaseTime.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636245414/Rebase_Time_7b5388982f.png)


This treasury is the backup for every token printed, and it contains AVAX & MIM and some LP positions, combining them with $TIME. Backup means the price won’t fall below a certain value. 

You can check all of this on their website: 


![18.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636246086/18_c9401ef424.png)


Normally stable coins have a backup AND fixed value. Most commonly, the USD ($) - the price of Time on the other hand is determined by supply & demand. 

That's why it's trading so much above the backed price. In the end - everybody likes a good 70k % APY right? 

![19.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636246087/19_618f49156e.png)


But wait. Although it's obviously tempting to go down the wonderland simply because of money. Rebase protocols were created for a different purpose. Let's look at the purchasing power of the dollar. 


![inflation.jpg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636246675/inflation_2a1d9dcdda.jpg)


As you can see the value is decreasing rapidly and therefore all the stablecoins out there are coming down with it. To create a token that is not influenced by inflation, the OlympusDao team created $OHM. 

Every new rebase protocol is a copy (fork) of OlympusDAO including $TIME.

If the OlympusDao archives their goal, continuously reduces their APY - it might have the chance to become the reserve currency of DeFi. 

But that's another topic.

Important for now is the fact that protocols are making profits, which they end up sending to their Stakers. The more profit it makes, the higher the APY. 

![BondingPlsSer.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636245414/Bonding_Pls_Ser_b93758f381.png)

If the APYs go crazy, the demand will also increase. That's why there is an option to buy at discount. 

Usually ~10%. 

This process is called bonding/minting and increases the amount in the treasury directly. 

Therefore, the APY will grow even more. 

![Modern Geometric Finance Logo.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636248274/Modern_Geometric_Finance_Logo_50a91048e0.png)

This will work. Until it doesn't.

There can't be an infinite amount of demand. People will take profits. But because I have faith in the whole community behind it. I think it will work for a while. 

I know. It's a lot to understand. Took me quite a while to write this article - let me know if I made a mistake and [follow me on Twitter](https://twitter.com/MrDiamondHands4) for (9; 9) and (4;4) strategies. 

Let's get to the important part now. 

## How to use Time correctly 

Einstein once said: 

> “Compound interest is the most powerful force in the universe.”

Our brain is not able to understand exponential growth. Einstein knew that as well as Banks.

That's how they fuck with us. 

Don't you wonder why a Bank doesn't encourage you to pay back loans at once?

They are very well aware of the effect TIME has on the amount you owe them. 
 
Please do yourself a favor and treat any rebase protocol as an experiment. You're very early on this. 

The point is to hodl long enough to make money even though the price is dropping. 

Let me make this point clear by giving an example. 

If you invest in $TIME now and the price drops 95 % you were still profitable after 365 days of holding. 

![stakingcalc.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636249420/stakingcalc_f67750110f.png)
*let me know if you want to play around with this calculator yourself. 

This doesn't include the APY changing and is simplified, but I think it underlines the point that I'm trying to make. Price doesn't matter so much. 

Twitter is full of ( 3 ; 3 ) or ( 🎩/ 🎩) and now you know why: 

The price of TIME and therefore the money everyone makes is strongly dependent on the way the whole group behaves. Making it the most exciting game theory experiment you will ever be a part of! 

Players have **three choices**: 
- (3)  = staking, increasing-price;  
- (1) = Bonding, price not affected but bonus ;
- (-1) = selling, price go down. 

If you and I stake, we are ( 3 , 3 ) and therefore WAGMI. 

Upcoming forks will rug your ass, promising quick returns by imitating the way OHM and TIME are changing the game – don’t fall for that! It's about the community and the people behind a project that has the most influence on its value. 


That said I hope to see you on the other side (🎩  , ___) 


This article is teaching degens how rebase will work. It will be updated soon and is no financial advice. 

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Rebase token and why you shouldn’t sleep on them

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Avalanche

**Looking at** the big boys in Crypto. Bitcoin and Ethereum. You'll notice. There are two major problems that are holding us back from mass adoption: 

1.	It’s f*king expensive 
2.	It’s way too slow

![5.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637145392/5_5d29bf09db.png)

In other words. The systems are not made for the masses yet. 

Therefore, we need to improve the tech. This way we can live in a decentralized world one day. 

But you and I are degens, right? 

How should we improve the technology we barely understand? 

lucky us! there's Avalabs. 

Thanks to them, Avalanche has superior tech at a core level.

![7.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637146222/7_c42504f204.png)

In this article, you’ll find out everything you require to know about Avalanche. Summed up in a degen-friendly manner:


# The Avalanche Network 


What is it that this network has that the others are missing out on? 

The answer is complex. So, please allow me to simplify things by using examples: 

Let’s imagine a Blockchain as an Ant colony. 

A bunch of individual Ants (Notes) minding their business. But at some point, they require refilling the food supply. 

Each Ant found a new source. Now it’s time to agree on the best path for them all. 

This is called *consensus.*

**The first approach to achieve consensus was the following:**

Imagine you found a decent place. 

Now you need to report to the Queen what you found. 

But not only you. 

Every Ant requires reporting the Queen. 

And in the end.

She can tell which path is best. That'll work out fine for 10 Ants. 

Or maybe 100.  

![9.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637146514/9_06c1004484.png)

But now imagine 10 million Ants talking to the Queen 1 by 1 to decide where to find food.

Most likely, they are starving to death before making an agreement. 

**“That Sucks!” is what Nakamoto thought, creating a better model. And allowing the rise of Bitcoin:**

This time. Ants don’t have to go back to the queen anymore. 

They are reporting to the hardest working Ants in their area. 

Which allowed bigger Colonies.

![10.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637146670/10_557b3b21b6.png)

Every Ant is working the best they can: 

But only the hardest working Ants are then chosen to make the decisions. 

By the time the decision is made – most Ants were too exhausted and needed more food. 

This technique is using up **a lot of resources**. 

**To create even bigger colonies, the Avalanche Consensus model was created:**

In this model, you just report to the nearest Ants you find. 

Which makes it **the fastest** working Colony. 

Instead of reporting to an authority. 

Ants communicate directly. 

If your neighbor found a better food spot. Just take over his information (color). 

Now you represent the best spot.

Continue chatting with as many ants as you can, and always take the superior color. 

![11.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637146940/11_e9a51cc093.png)

At some point, all Ants will have the same color, and everyone knows where to go! 

The real process is way more complicated *(thx captain obvious)*.

Because Avalanche consensus is not one single process. It’s separated into 4 stages: 


1.	Slush
2.	Snowflake
3.	Snowball
4.	Avalanche

But this gets a little too technical for now. 

If you want to know more about this, I’ll link you to a very [helpful video.](https://www.youtube.com/watch?v=3TAgLJHTYRg) 

Other than that. 

*We're not done yet!*

# The network set-up

Remember the Colonies we’re just talking about? 

The Avalanche Colony is the superior one. 

And not only because of the consensus. 

They are also splitting up their Ants to manage three different tasks: 

-	Transactions
-	Smart Contracts
-	Validator/Subnets 

This allows the Colony to work even more efficiently. 

Having different tasks for different Ants reduces the cost per transaction. 

Because there is less work done by the individual. 

In terms of Blockchain, that means. 

There are **three Chains working parallel**, forming the main network. 

But… If there’s a main network – does that mean, there will be…a SUBNETWORK?

Damn right there will!  And not only One – multiple Networks can be added. 

![8.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637146912/8_09c36f7fe0.png)


# SUBNETS

And the best thing: each subnet has its own pair of rules. 

They are **NOT** limited to Ethereum. The creator of the subnet can select their *Virtual Machine* (VM). 

![12.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637147214/12_c1bf73bcb4.png)

Well, what the hell is a VM? 

A VM is basically the language of your ants. 

Currently, the Ethereum virtual machine (EVM) is the Ethereum native language you need to create products on Avalanche.

A subnet. Can be added where the main language is different. 

Maybe Rust? 

This would make Solana x Ethereum Defi Plays very comfy for us degens.   

The point is that the Colony from the beginning can be extended to such a huge scale that mass adoption is in sight! 

If you’re only 10 % as excited about this, then I am. And I mean you made it to the end. That's degen! 

Please consider learning DeFi along with fellow degens and join [our discord](https://discord.gg/xt3bVZGp8K)! 


What is Avlanche? The Avalanche Blockchain is better than any other project out there.

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Why Avalanche is the superior layer one blockchain

How many times did you have to listen to your friends telling you that investing in the stock market is so much better than wasting your time with crypto currencies? I don't know about you but to me this happened quite often. 

Imagine their faces when they realize that it's possible to buy stocks on a blockchain. Decentralized. And you can earn staking interest on them. What the hell? 

![Mirror ETF meme.JPG](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637365355/Mirror_ETF_meme_dc8b4b0aaf.png)

# What is Mirror?

Mirror Protocol is a very promising project running on the Terra ecosystem. It is a "synthetics" protocol for on-chain price exposure to real world assets (synthetic = not backed by real assets). 

This means that it allows you to buy, trade and sell mirrored assets that are pegged to the real world price of assets like Google, Amazon and Tesla stocks. On the blockchain. More assets can be added based on what the community decides. 

So how does this work? How does Mirror ensure that the assets are staying in peg? And why the hell should you buy crypto stocks when you can have the normal ones on the stock market?

I will start by first answering the last question as it is probably the most important one: Because we are DeFi degens and we don't want to interact with the real world anymore. Fuck the stock market. 

No but really, **there are some big advantages**. 

First of all the accessibility increases. If you're not in the US you can't trade US stocks and equities. Mirror has no boundaries, you can buy the mAssets (mirrored assets) from all over the world. 

There are also fractional orders. This means that you can buy a fraction of a certain stock. I know this is already possible on some stock market exchanges, but it's still easier to do this on Mirror. 

Moreover, there is no KYC (Know Your Customer). Contrary to stock market exchanges you don't have to give anyone your personal data. 

Lastly and most importantly you are able to earn staking interests on your mAssets. This is just crazy and I will explain how it works in a bit. 

![5.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637365401/5_d1c404eca8.png)

# How the whole thing works

Essentially, there are 4 roles that one can engage when using Mirror Protocol:
- Trader
- Minter
- Liquidity Provider
- Staker

**Trader**

Being a trader is the simplest way of interacting with the Mirror system. 

You are basically buying and selling mAssets with UST (the stablecoin of the Terra ecosystem). Like in the real stock market you either benefit by buying a mAsset for a low price and selling at a higher price or you lose when it's the other way around. 

This is very uncomplicated as you just have to charge up your Wallet with UST. The rest works just like in the real world. 

You can also see how much liquidity is locked in every mAsset. The more the better as the prospect of selling your mAsset and getting the proper amount of UST in return is higher. 

![Mirror Trading Data.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637365313/Mirror_Trading_Data_8cc5196378.png)


**Minter**

Now it's getting interesting. You can mint (create) new tokens of a mAsset by entering a CDP (Collateralized Dept Position).

Difficult word I know, but the concept is actually quite easy to understand. It just means that you have to provide the protocol with some kind of security (mostly in UST or other mAssets) in order to ensure that the mAsset you are minting is backed. So you could say that you are borrowing the mAsset against the security. 

Mirror requires you to set a collateral that maintains above the minimum collateral ratio. For UST this is 150%, for most of the other securities like Luna and mAssets it's 200%. If the mAsset you minted rises more than the collateral backing it you will get liquidated.
This means that the protocol incentivizes users to claim your collateral and burn the mAsset in order to ensure price accuracy. 

**Liquidity Provider**

You can provide an equal amount of a mAsset and UST to TerraSwap in order to earn portions of the juicy exchange fees that traders pay in order to use the exchange (TerraSwap in this case). 

This increases the liquidity for the market and rewards you with newly minted LP tokens. You can burn these tokens to reclaim the according amount of mAsset and UST or you can stake them for some additional profit. 

![Obi Wan LP meme.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1638730610/Obi_Wan_LP_meme_03e6f18763.png)

**Staker**

It is possible to engage so called yield farms with your mAssets and an equal amount of UST in order to earn MIR. It is the governance token of the Mirror Protocol. You can either hold and stake MIR (25% APR which really is not bad) to participate in votings that decide the ongoing development of the project or you can just sell it. 

MIR basically is a farming token which means it is inflationary as it continuously is minted and given to stakers as reward. So don't expect the price of MIR to go up that much. 

I am going to write a separate article that will go deeper into the whole yield farming thing, don't worry! 



All of these different roles play together to enable the whole concept of Mirror. I know this is a lot of information and I can ensure you that if you really understand Mirror Protocol you will have a good knowledge of the key functions of DeFi. 

Still, in order to make things more clear I will highlight the basic strategies that you can pursue while interacting with Mirror: 

1. Trading mAssets
2. Minting/Buying mAssets and providing liquidity to TerraSwap in order to earn sweet exchange fees
3. Minting a mAsset and selling immediately with the hopes of later buying another mAsset of the same kind at a lower price so that you can close your position and reclaim your collateral (basically shorting) 
4. Minting/Buying mAssets and engaging in yield farms in order to earn MIR (earning interest on your mAssets)

![Mirror Strategies.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637358521/Mirror_Strategies_ee53cdbc98.png)

# And how does Mirror track the real world prices?

There are two mechanisms that ensure that the mAssets really maintain the price of the underlying assets. 

I actually already explained the first one. Every mAsset is backed by at least 150% of its value in UST. If the value rises above the collateral ratio other users can immediately liquidate your position and burn the mAsset to ensure that the price stays correct.

The other part is the so called oracle feeder (now it's getting mythological).

An oracle feeder is someone that is sitting in a digital chair surrounded by mystic smoke trying to predict all of the prices for the different mAssets. Everything is possible in the crypto space. 

![Mirror Oracle feeders meme.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1637367298/Mirror_Oracle_feeders_meme_c2f9645d4c.png)

To be honest, this is quite complicated to explain so I will just kind of copy the way Mirror describes it:

An oracle feeder is a designated Terra account responsible for providing an accurate and up-to-date price feed for a specific mAsset and is the only party that is permitted to update the price of the reflected asset. Because of its crucial role in the stability of mAssets, the oracle feeder is elected through governance and will be replaced by the community if ever it underperforms in its duties.



Mirror Protocol is a project that I've been following since the beginning of this year and I'm definitely planning on investing more time in further research. 

I have to admit that I'm still trading stocks on the stock market, but maybe I will slowly start shifting over to Mirror in order to take advantage of all the features that allow you to make more profit. 

I hope you enjoyed the read!

Please consider learning DeFi along with fellow degens and join [our discord](https://discord.gg/YebVwKqQ)!

How many times did you have to listen to your friends telling you that investing in the stock market is so much better than wasting your time with crypto currencies? 

Imagine their faces when they realize that it's possible to buy stocks on a blockchain. Decentralized. And you can earn staking interest on them. What the hell? 

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Mirror Protocol: Stocks on the blockchain

I remember a few years ago when I first looked into stock market trading. There was a brief moment where I asked myself: Why not go long and short on a stock at the same time?

I overthrew this idea really quick.

With a regular stock, putting up a long position as well as a short position with an equal amount of money is non sense as you are always going to stay neutral. In addition you will lose the fees you payed. 

![Confused stonks.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1638298603/Confused_stonks_5450de190c.png)

In the magical crypto space however, you can get some juicy returns while doing exactly that. Opening a short and a long position. On the same mAsset. With the same amount of money. Staying neutral. While making profits. How in the..? 



Well, let me explain this to you. 

If you don't know what Mirror is, check out [this article](https://www.tldr-crypto.news/post/mirror-protocol-assets-on-the-blockchain) before reading. 

You need to understand that while using this strategy your position is actually also gonna stay neutral. 

The big difference to the stock market is that you're taking advantage of the yield farms on Mirror. 

This means you are not exposed to a price change of the mAsset while still earning money through farming. 

Yield farms are usually profits in form of farming tokens (MIR) you get from providing liquidity to a certain pool. Here these pools are represented by a mAsset on one side and an equal amount of UST on the other side. 

The updated version of Mirror Protocol added a short farm. Here you can provide a collateral in order to open a short position (selling the mAsset immediately) and farm MIR too. 

This was implemented so that the premiums you pay for opening a position won't be so high anymore. 

The MIR you receive can be used to either sell for profit or stake in order to participate in community votings and also earn some interest. 

So, after understanding the basic principle of yield farming, let's dive into the fun part.


# Two delta neutral strategies on Mirror Protocol

**Strategy 1: Short Farm + Long Hold**

One of the things that makes everything even juicier is the usage of Anchor Protocol. 

We have already made [an article](https://www.tldr-crypto.news/post/20-annual-passive-income-on-anchor-protocol) about this. 

Basically, you can deposit UST for a 20% APY. On a stablecoin. You heard right... 

When you do the deposit you get aUST, which represents your position. This coin will not go up in quantity but in value. You can use this yielding asset as collateral for Mirror. 

![Bildschirmfoto 2021-12-04 um 14.18.11.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1638638381/Bildschirmfoto_2021_12_04_um_14_18_11_152a184450.png)

So, let's say you have 300$ that you want to put to work. 



*Step 1:*

Lock 200 UST in Anchor Protocol to get 200$ worth of aUST. You will passively get the 20% APY on your UST.



*Step 2:*

Go to Mirror and create a short farm position for a mAsset. Let's pick mTesla in this case. 

You will put your 200$ aUST as collateral in order to get mTesla. Keep in mind to set a reasonable collateral ratio. Let's go with 200% so that you will get 100$ worth of mTesla. 

The protocol will now immediately sell your mTesla. As you created a short position, you're betting on the Tesla price to fall. 

You will get the 100$ from the sold mTesla after two weeks.

Meanwhile, you're farming MIR tokens according to the yield ratio. 



*Step 3*

Right now you're just exposed to the short side. In order to go delta neutral you need the long side as well. 

The only thing you have to do for that is to buy the same amount of mTesla (100$) and hold it. 

This way you can later close your short position, as you already own the proper amount of mTesla. 

![Delta neutral strategy 1.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1638568912/Delta_neutral_strategy_1_2137865c97.png)

To sum this up, you're farming MIR tokens (you can sell or stake) without being exposed to any price movement of the mAsset. 

Still, always keep in mind that your collateral can get liquidated.



**Strategy 2: Short Farm + Long Farm**

For this one you actually go a bit further than with strategy 1.

Instead of just holding the mTesla you bought for the long side (Step 3), you're gonna provide liquidity to the mTesla-UST pool. 

This is called long farm. You just pair your 100$ mTesla with an additional 100 UST. 

So now you will farm MIR on the short **and** the long side. You will also get some of the sweet exchange fees for providing liquidity. 

![Kopie von Modern Geometric Finance Logo.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1638637883/Kopie_von_Modern_Geometric_Finance_Logo_3a87b3df30.png)

There is one problem with strategy 2. You can be exposed to Impermanent Loss (IL), which basically is a kind of opportunity cost.

This means that you're not really losing money but missing out on bigger profits. 

By providing liquidity, if there is a significant price move you might end up with a little less money than you would have had for just holding the mAsset. 

Still, the transaction fees plus the farmed MIR should compensate you in most cases. 

And as you need the mAsset in order to close your short position, it doesn't really matter that much. 



I think these strategies are a good way to earn some decent amount of money while not being exposed to high risk. 

I know it can be quite difficult to grasp all of this on the first read.

Make sure you understand the concept before you plan on pursuing one of these strategies!

Check out our other articles, if you want to know more about the crypto space.

A quick explanation of two delta neutral strategies you can pursue when using Mirror Protocol. Juicy yields incoming!

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Good profits, low risk - the delta neutral strategy



Damn, borrowing in DeFi can cause headaches. You always need to keep track of the prices. I mean you don’t want that your collateral gets liquidated. It's the fucking worst thing to happen.


Thanks to Nexus Protocol (Farm token: PSI) this is history. They created vaults that can adjust the LTV ratio of your loan on Anchor Protocol to optimize your yield. 

This is a cheat for all Degens out there who don’t want to mess around with complex strategies. 

Farmer geeks willing to take more risk don’t be disappointed they persuade with farming APR’s up to 260%.



Let me show you three strats with different difficulty level, maximizing your yield while considering your risk apetite.



## No. 1 - For the humble farmer who wants to play it safe

There are not many protocols out there generating 8% APR on your LUNA/ETH.

You only need to deposit your bLUNA/bETH into the vault. They will do the rest for you. No impermanent loss

It’s that simple. If you want to know how the Vault revenue is generated check out the picture below. Basically it's the good old anchor strategy we had explained in one of the previous articles. 

![Bildschirmfoto 2021-11-08 um 01.16.53.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636395675/Bildschirmfoto_2021_11_08_um_01_16_53_fb0efec2ae.png)


The protocol has a swap option. So the PSI rewards can be easily reinvested into your collateral.  




## No. 2 – For the real degen who likes to gamble

As a receipt for your deposit asset you will get nLUNA/nETH. This means you can get 8% on your LUNA/ETH plus up to 250% APR with the Farms. 

That’s just amazing!

![Cash meme.jpeg](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1638729209/Cash_meme_098a66664c.png)

Remember you need half of the amount in PSI and be aware of impermanent loss. 

![Bildschirmfoto 2021-11-08 um 18.26.58.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636395806/Bildschirmfoto_2021_11_08_um_18_26_58_8b45344172.png)


Claim and reinvest your rewards to maximize your yield.


## No. 3 – The pro degen who's a lunatic

You want to know what strat can top the previous one. Let me explain you my favorite strategy. 

I’m really bullish on LUNA/UST and the whole ecosystem. In my eyes the Team behind Terra is great and very professional. They built platforms that support each other. We saw this first with Anchor and Mirror Protocol. 

You know the fact:

#### ***The more and more UST gets minted the more LUNA needs to be burnt***

What I want to say is: Why should I risk to lose some of my LUNAS due to impermanent loss if I’m that bullish on LUNA. Sounds pretty logical. 

The last strat is for the degen LUNA hodlers like me (Same for ETH, but I'm not that bullish on).

Use Anchor protocol instead of Nexus to deposit your collateral. Remember you need to track the LTV yourself. You don’t want to be liquidated. 

![Bildschirmfoto 2021-11-08 um 18.24.56.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636395713/Bildschirmfoto_2021_11_08_um_18_24_56_4f274e8e89.png)
![Bildschirmfoto 2021-11-08 um 18.25.10.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636395713/Bildschirmfoto_2021_11_08_um_18_25_10_989c24a24e.png)
![Bildschirmfoto 2021-11-08 um 18.25.17.png](https://res.cloudinary.com/dkzpsqvfn/image/upload/v1636395713/Bildschirmfoto_2021_11_08_um_18_25_17_d5df9af793.png)

Borrow UST against your bLUNA/bETH and deposit your UST in the PSI-UST for 260% APR!!!


For all of you who don’t want to do the math. As long as the APR is over 100% this is a self-repaying loan over 1 Year. 

Same as before harvest the rewards and reinvest into the pool to maximize your revenue. 


Check out the pervious article if you want to know more about Anchor protocol. 











Why Nexus Protocol can be useful when farming in the Terra ecosystem - 3 Strategies. 