EMERGENCY ! A new DEGEN BOX STRATEGY is about to be available in the terra ecosystem

EMERGENCY !!!

A new DEGEN BOX STRATEGY is about to be available in the terra ecosystem.

For your information.

Either I have some wrong understanding of leveraged loops or the article linked in the Anchor forum is hugely misleading, which would mean that this strategy is as far as possible from being “degen”. As I’ve done a few leveraged loops in various places, I’ve ran my calculations on the data from Edge Protocol and I have come to the following conclusions:

  • max LTV is 0.7695, which produces max leverage of about 4.33;
  • supply APY for aUST is almost zero, so combining that with Anchor “earn” rate let’s say that the total APY on what you provide is 20%;
  • borrow APY is -17.93% for UST
  • all of that results in a totally unappealing combined APY of 26.9%.

You can get that on Mirror easily, without doing any loops or playing with a risky new protocol.

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