Terra community buys some bitcoin, and other LUNA news

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Coinmonks

6 min readFeb 25, 2022

Terra has a current TVL of 21 billion USD. There is over 12.6 billion UST out there in the wild. The LUNA token itself is currently trading at 68 USD with a market cap of roughly 26 billion USD. LUNA as well as asset prices in general have been exceedingly volatile as the fed gets ready to tighten, inflation Fucks over consumers and the world continues to escalate towards world war.

The Luna Foundation Guard (LFG) has announced the acquisition of one billion dollars worth of BTC that will be the first part of a Forex reserve basket intended to help keep UST on its peg during volatile times. This BTC was acquired OTC with the help of Jump and Three Arrows Capital. This forex fund will be one more layer of protection for the UST peg in the event of a bank run type scenario.

In further LFG funding news, the sports team they made a deal with has now been publicly named. It is the Washington Nationals, which is a baseball team. I don't know much about sports, but this team seems like a neat partner because of proximity. What I mean is their stadium is not very far from where the legislators hang out in Washington DC. I have no idea how UST may be integrated as a payment option at the stadium, but its pretty hard to see this as bad news.

Phase one of the Mars Lockdrop began on the 21st of February. Mars is using the method pioneered by Astroport to distribute the MARS token and find its initial price. For the first week, you contribute UST to the protocol and choose how long you want it locked for. The first five days are deposit only while the last two allow you to withdrawal a decreasing amount of the funds put in earlier in the week. The second phase will begin on the 28th of this month and that is where we will decide the value of the new MARS token. In this part you can deposit the MARS you got from phase one and some more UST in to a liquidity pool. At the end of the second week Mars will launch and we will have more leverage in the Terra world. They have some interesting ideas surrounding uncollateralized protocol to protocol lending that should help liquidity throughout the whole ecosystem.

Speaking of money markets, Edge protocol came up out of nowhere and beat Mars to market. Their UI is clean and my experience with the protocol thus far has been only positive. I'm all for community led projects and this one seems fucking great. I am participating in the TFL sanctioned, Delphi designed Mars project as well, but I'm honestly a lot more excited for this quickly deployed protocol that popped up from our community.

Anchor, the original lending protocol of Terra land is still dominating with 12 billion in TVL. The yield reserve has been topped off by TFL. The ANC token itself seems to have woken the fuck up the last three weeks. Even though Putin is accelerating WW3 and the rest of the market has been back and forth, ANC has been straight up this month. It is now in the top 100 coins by Marketcap. Its around 3.50 USD at the moment and if we clear 4 there is no more resistance in sight. I don't know if this is due to the Benqi collaboration or murmurs of tokenomic revision(voting escrow incoming). Although ANC has been up only, the same can not be said for bETH or bLUNA. Despite volatility in its collateral, the protocol has been behaving wonderfully. They will have more collateral types for us all to choose from shortly. The Benqi liquid staking product is live on Avalanche. Soon that sAVAX will be collateral on Terra as well as having Anchor options on Avalanche.

Prism has exploded on to the scene and quickly gained the number eight spot for TVL on the terra chain with 125 million USD worth of assets locked. They have pools available for every combination of their refracted tokens (yLUNA, pLUNA and cLUNA) their governance token PRISM and the staked version xPRISM. These will all soon be receiving LM rewards in the form of PRISM. If you don't want to incur IL from LPing, you can stake your yLUNA for airdrops and LUNA staking rewards. You can even restake your xPRISM to earn AMPS. Accumulating more AMPS will allow you to earn a higher yield on your staked yLUNA. The possibilities that are unlocked by this building block are pretty nuts and I am excited for some farming strategies that I will barely understand. At the time of writing, yLUNA is trading at 53.6 USD and pLUNA is at 13 USD. There is currently a great deal of debate on twitter about how to value these tokens. It is pretty interesting to watch. Most of the participants make new valuation methods up out of whole cloth rather than looking to analogous things in crypto or even traditional finance. Crypto folks like to reinvent the wheel.

Astroport crossed one billion dollars in TVL. Recent volatility has seen some pretty massive volume as well, so trading fees have been wonderful. New pairs are being added, but we are still unable to stake our ASTRO. The price of ASTRO has gone up some in the last week or two, after being straight down since launch. I think it was largely a victim of poor timing. The whole market shit the bed shortly after their launch and lots of people sold off their ASTRO from the lockdrop to recollateralize loans. I think this may still be an important token to own eventually.

Stader keeps making staking easy and profitable. The farming for their SD token is ending on the 28th of February.

Whitewhale is now fully live. You can deposit UST in there to earn a yield by helping the automated strategies defend the peg of the aforementioned UST. This is a pretty cool way to decentralize arbitrage opportunities. While deposited in the vault you earn the Anchor rate in addition to arbitrage yield. They will soon be launching vUST a liquid staking derivative (read my piece on steak) representing the UST in their vault. I expect this vUST to be integrated in to many other protocols going forward.

Mirror is still providing exposure to equity markets. The community just rejected the bid to list Proctor and Gamble and looks to be approving Shopify. They also recently approved LUNAx as collateral which is pretty awesome.

In legal news, Mr Kwon has been compelled to comply with the SECs subpoenas(previously detailed on this medium) regarding Mirror Protocol and TFL. He had filed a countersuit claiming the serving of a subpoena wasn't done super well, but I guess the judge doesn't agree. What this means for Kwon or the ecosystem that has grown largely due to the efforts of TFL, I have no idea.

LUNA and UST trading has gone live on so many new cexes and dexes I cant keep up. Suffice it to say adoption is becoming easier. Nebula and Kinetic are right around the corner supposedly. Vertex is launching their testnet on the 28th of February. LUNA stakers are eligible for the SHADE airdrop that just happened (read some of my articles on Secret Network). All sort of crazy NFT projects are popping up here. Levana has launched a card game as the next installment of its battle of the factions. LocalTerra is a pretty awesome protocol I just hear about. They offer peer to peer trading between Terra assets and local fiat. Please let me know if you are still interested in ecosystem updates as our world descends into chaos.

Farmer Michael

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Terra community buys some bitcoin, and other LUNA news

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Written by Farmer Michael