Early Retirement Extreme Forums

Put 10 UST into the anchor protocol at 19.39% apr. Let's see how this grows.

Using chrome or chromium, get the terra space station extension. Get UST, from Luna you can swap it here (1).

Then go to anchor protocol and click deposit here (2).

Let's see how this does. I don't like dollars much but it may be useful at times to get comfortable with this.

(1)
https://station.terra.money/swap
(2)
https://app.anchorprotocol.com/earn

I don't understand how this is much of an experiment. It just seems like an advertisement to pump a specific cryptocurrency. You have 4% of your net worth in LUNA right?

What about the risk of UST imploding in a similar way to TITAN or other algorithmic stablecoins?

How do you think this thread on this tiny forum will affect the market cap of a 10b stable coin or 33b L1? You must think I’m really influential on here. At best, some people will put 1% in btc because of this as their first baby step and then get lazy to do something like swapping on dexes from their hardware wallet or bridging and farming.

More than 7% now, one of my biggest holdings after I played with it more because I see how it can be useful to others even if I don’t normally touch stables. I bought way more since that post by selling eth then bridged it off Luna’s chain to another chain to farm it with another coin at 400% apr. The 20% thing is a joke to me. I don’t want to lose too much purchasing power (-10% expected yield after taxes of -30% via m2 dilution).

I have never done this so it’s an experiment. Normally put 0 into any stable coin due to expected negative real yield relative to even something as basic as btc, boring hard money. This amount (10ust) is insignificant but we had several people surprised by the rates and seeming curious so I wanted to publicly do this so they, and I, could see how this works better.

I appreciate the public experiment. Many years ago there was someone here who was doing something similar with a leveraged portfolio.

You may get a better understanding and conversations here if you explain more about your ideas and actions. There are some people here with crypto and economics knowledge but many people aren't even beginners in either area and won't get it (myself included).

Gilberto de Piento wrote: ↑

Tue Jan 04, 2022 11:05 am

Many years ago there was someone here who was doing something similar with a leveraged portfolio.

And he still checks in every once & awhile.

Okay, I'm game.

Humanofearth wrote: ↑

Mon Jan 03, 2022 12:01 am

Using chrome or chromium, get the terra space station extension.

I went to the play store and downloaded the terra station extension to the Brave browser, clicked on create wallet, created a username and password, then wrote down my seed phrase.

Humanofearth wrote: ↑

Mon Jan 03, 2022 12:01 am

Get UST, from Luna you can swap it here (1).

Where should I get UST? How would I get it?

If you get Luna from Binance or FTX (not sure if US versions of these sites have it), you can swap for UST on terraswap. You can almost certainly get UST there as well. Luna address will be in the format terra_insertvariousalphanumerics. If you buy on Coinbase, you'll notice withdrawals are in eth format because they are wrapped Luna and not actual luna. You can probably bridge this over from the eth to the luna chain but it's expensive to transact with eth so you'll want to start with native Luna format and Coinbase is out for that reason unless you can withdraw the native coin.

You’re using what’s known as a hot wallet (software wallet on general purpose device). If you use serious amounts, you will want a hardware wallet-ie Ledger Nano X. I have no username or account password on the Terrastation, my hardware device + 8 digit pin is my login.

Can I just skip the whole Luna step by buying UST on OKCoin and then transfer it to Anchor?
https://www.okcoin.com/prices/terrausd-ust-price-chart

Probably. Buy a few dollars worth, go to withdraw it to your terrastation address and make sure the format is the same, if it is, do a test withdrawal with a few dollars and then deposit it in Anchor. Once you’ve confirmed it is in Anchor earning interest, move over the full amount.

Okay, it worked.
I installed the Terra Station wallet plugin on the Brave browser.
Created an account, password and wrote down the seed phrase
Bought the UST on Okcoin.com
In order to withdraw the UST from OKcoin I had to transfer it from my trading account to my funding account
Then I withdrew it to the Terra Station Wallet by copying the address from the wallet (below) and pasting it into the withdraw form on OKcoin



I then opened the anchor website in brave
https://app.anchorprotocol.com/earn

Then click "Connect Wallet" button (top right)
Then clicked deposit and deposited 85 UST. 19.48%APY.



Fun experiment. Thanks!

ETA: Of course, I was curious how they are paying nearly 20%. Here is someone who does a little digging on the numbers. Not sure I'd want to have my life savings investing here, but it is interesting.
https://www.youtube.com/watch?v=h4NTaPYB_n8

I will just note - Make very sure you save your seed phrase somewhere you can get it. If you lose it, there is no password recovery, your funds will be locked and never accessible!

It is also a bit of a slippery slope to start looking into (tech is fascinating though), with yield farming, lending/borrowing, leverage and the like. It's not too uncommon to see >100% APR for various "strategies"

Good point. Write your seed on dog tags with a jewelry engraving pen and store in a few locations with a 2pw only you know.

I added to my UST pile to get ready for some large imminent expenses. Took farming rewards and swapped to Luna, bridged to Luna, swapped for UST, and deposited into Anchor. Gas was about .15usd to do this, slippage, probably about .7% in the swaps.

This will make the net interest higher since I deposited over a Jacob into the protocol.

Aped and made an emergency fund, let's call it 486,800. Should be enough for a nice lifestyle. The peg held up nicely in the crash. Let's see how it goes.

487,090. So up 209usd in a day. Enough for living expenses.

Let's ish some math out:

(487,090-486,900)/486,900*365=14.2%

Hmm... Maybe something about epochs or when it starts counting from. Let's try again next time I remember and see how it's going.

If any of you math autists noticed any errors in my math, help me out.

Likely APR Vs APY

Thank you fingeek.

Balance is now 487270.

(487270-487090)/487270=13.4%. Is it under 24 hours?

My Juno, Osmo, and Jewel farms are pumping out multiples of this with less capital. Hmm...

Too much expected loss from this experiment. Meaning, I have too much capital tied up in an investment yielding way too little with too much risk. I’ll get a better return on hodling some btc at 20% apr and have much less risk. So what are my fiat denominated expenses?

Let’s start with 30k for my marriage. So to get 30k in 8 months at 19.43% interest:
30,000×(1-0.1943×(8÷12))
=26,114
So I’ll deposit in 26,114 and see if it reaches my number in 8 months time. Is this correct math?
26,385 for updates in future.
Happy New Year everyone.

26450
(26450-26385)/26385*365/5
=17.98%
Returns seem smoother when not checking as often.

Also, higher returns on stable pools available here* but on Eth L2 rather than Atom L2. However, Bobaswap and Arbitrum are some of the higher returning stables pools there (20-25%) and I don't feel comfortable in those or harmony for safe money compared to Luna. Avalanche at 14.8% seems worthy of consideration to diversify a bit.

Honestly, when Jacob wrote that investment always changes in his book, I thought he was lazy. I thought indexing was the be all end all, then a few tech stocks and eventually crypto changed my mind to see that he was right. Investment is a lifelong pursuit that requires constantly learning and frequently challenging our most tightly held ideas, admitting I was wrong for half a decade by holding stocks instead of learning to directly hold cryptographically secured property was the hardest and most expensive lesson I've learned thus far. Happy I admitted it in 2020 than waiting until now.

*https://synapseprotocol.com/pools

26700

This just got more relevant, given the SEC's agreement with BlockFi. All of the CeFi stablecoin interest accounts have their days numbered.

Very happy the government is protecting me from making decisions with my money. I'm quite sure the SEC approved version of the product will be just as good....