The following discusses several of the possible uses of Anchor Protocol and expected returns and risks. I will try to present some simple equations that will allow you to build a spreadsheet. I am using rates from the protocol on July 14th 2021 in the examples below.  I will use 200 UST as input to each of the possible use cases to allow for simple comparison. I will also use a low loan to value (LTV) of 25% in example to mange riskI will go into detail on Bonding and Burning in next article. You should also review Anchor Protocol Documentation at https://docs.anchorprotocol.com/

1) Anchor Earn - https://app.anchorprotocol.com/earn

   Anchor Earn is the simplest way to use protocol. You deposit UST and earn interest. The interest rate tries to stay near ~20%. There are a few minor risks with this: 1) that UST losses its peg at ~1 US Dollar; 2) smart contract risk . You are able to take out insurance if you are worried about these risks. The other thing to know is that you will be given aUST token to represent your deposit and can use this in the Mirror Protocol as Collateral there.

Deposit Value * Earn Interest = Expected Reward

200 UST * 19.41% = 38.82

2) Anchor Borrow - https://app.anchorprotocol.com/borrow

   Anchor Borrow allows you to deposit collateralized form of LUNA (bLUNA) and take out a Loan. The protocol is incentivized  to pay you to borrow.  The protocol takes your Collateral and stakes it to earn what it then can payout. This is why it takes 21 days to unbond your Luna. You are allowed to borrow less the 50% of your provided collateral.  This includes the risks above plus the more significant risk of liquidation.  The Loan to Value changes as the price of the bLUNA / Luna changes with market conditions. If it goes above 50% your face liquidation. (There is a governance proposal to increase to 60% as I write this) 

Net APR = Distributed APR - Borrow APR

109.82% - 15.05% = 94.77% expected returns

Borrow Value / Collateral Value = Loan to Value (LTV)

50 UST / 200 UST collateral value = 25% LTV

Borrow Value * Net APR = Expected Returns

50 * 94.74% = 47.38

Expected Return / Collateral Value = Expected Net APR to Collateral

47.38 / 200 = 23.69%

Note that at a LTV of 25% in this example your have a return of ~23 % verse ~19% for Earn to cover increased risk

3) next approach is to Borrow and then just put borrowed amount directly into earn to increase your return and yet have easy access to funds to payoff loan if value of Luna goes down. 

example - 200 Collateral Value; 50 Borrow Value; 50 Deposit Value into earn

50 * 94.74% = 47.38 from Borrow

50 *19.41% = 9.70 from Earn

47.38 + 9.70 = 57.08 total return

57.08 total return / 200 collateral = 28.54% return on funds

Rate or return comparison

1) 200 into Earn - 19.41%

2) 200 into Borrow - 23.69%

3) 200 into borrow and borrow into earn - 28.54%

   What you decide to do is up to your investment objectives and risk tolerance. I hope this helps illustrate possibilities and risks. I have a spreadsheet i use

https://docs.google.com/spreadsheets/d/1H6kAkXBQu1cBkL8hDFN8lfSVsw0-A6mm-bqygj2rch8/edit?usp=sharing

I think / hope it is write protected so make a copy and then use as you desire. I am sorry if it does not work or gets corrupted. 

If you need help getting UST onto Terra Network please read my last article : https://www.publish0x.com/crytpo-adventure-by-ira/moving-crypto-from-binanceus-to-terra-network-xelrown