The Terra ORIGAMI Strategy —How to multiply your money with Terra, by DrCle4n

  • This strategy employs the use of crypto-loans, as such your position can be at risk of liquidation (although we will be managing this risk).
  • This strategy employs a short, meaning if the shorted asset price climbs more than a reasonable amount, you can be “short squeezed” or liquidated.
  • This strategy may be adapted to other chains, but for now it is only tested on Terra by myself.
  • Assets exposed — What asset prices will you be exposed to. These are the prices you need to watch.
  • You earn — What yield can you get, and where it is coming from.
  • Play it safe —Tips on how to minimize your risk (of liquidation) at this step.
  • Degen tips—Ways to maximize your potential reward at this step, with reasonable increased risk. You are responsible for your own actions.
  • Example — I will give an example with $ amounts to make it easier to follow.

The First Fold

  • $5,000 of price exposure to ETH.
  • $5,000 of price exposure to LUNA.
  • $5,000 of UST that I can do whatever I want with.

The Second Fold

Look for insurance providers — https://app.anchorprotocol.com/earn
  • +12.29% due to negative interest on our Anchor loan
  • +19.57% from Anchor Earn (paid in auto-compounding UST)
  • $5000 in ETH exposure
  • $5000 in LUNA exposure
  • $5000 in aUST, which grows at a fixed rate close to 20% a year
  • $5000 in ETH exposure
  • $5000 in LUNA exposure
  • $6000 in aUST (with 1yr fixed capital appreciation)

The Third Fold

  1. Head on over to Mirror Farms
  2. Click on mIAU ‘short’
  3. Select aUST as your collateral. Add the maximum amount.
  4. Ensure your collateralization ratio is 200% or higher.
  5. Confirm! (you can only do this during market hours)
Tweet Thread— https://twitter.com/DrCle4n/status/1415340816952745989
  1. Deposit into Anchor.
  2. Withdraw to an exchange and sell it for cash money that you can use in your real life.
  3. Buy more LUNA or ETH, or your other favorite tokens.
  4. Repay some of your loan on Anchor.
  5. Swap half to mIAU and provide liquidity for a long farm on Mirror.
  6. Swap half for MINE and farm up to 200% APR on Pylon.
  7. The list goes on and on….
  • if I used short farm — I will wait 2 weeks to collect $2625 UST. In the meantime, I will be gaining MIR Rewards indefinitely (this is variable based on the price premium). Higher premium = more APR.
  • if I used borrow — I will get $2625 UST immediately, which I can then use to increase my yield further, or repay a loan, or withdraw it for cash on an exchange, etc.

Summary:

Profit sources:

  1. Anchor loan (paid in ANC) ~37%, or ~18.5% overall
  2. Anchor Earn (paid in UST) ~ 20%
  3. Short farm yield (paid in MIR) ~variable
  4. bLUNA and bETH appreciation
  5. Gold depreciation
  6. (optional) farm UST in any LP (paid in reward token) ~ 45–200%
  • This strategy works best for long term. If you’re looking for instantaneous gains, this strat is not for you. It is recommended to use this strategy in terms of 1-year or longer.
  • There will be a closing fee charged for repaying your short which amounts to 1.5%. I’ve also found that market buying your asset on Mirror tends to have a markup due to the market premium, and this ended up to be another 0.5% of cost for me.
  • It is important that you keep your collateralization ratios in check. Gold rarely exceeds single digit growth, but it is still best to hedge yourself against possible market events (presidential elections, economic downturns, market mania) that causes volatile rise in gold prices.
    For more info about the asset, read here.
  • Your gold short will only generate revenue as long as the market price is above oracle price. Market price means the price of the mAsset in Mirror. Oracle price means the real world price of the mimicked asset.
  • When it’s good to close, it’s bad to farm, it’s bad to short. (market price is at or lower than oracle price)
  • When it’s good to farm, it’s good to short, it’s bad to close. (market price is above oracle price, asset trades at a premium)

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Cle4ncuts

Cle4ncuts

Writer, DeFi consultant, and Investor. Connect with me on Twitter @DrCle4n.