TERRA (LUNA) Update! Where am I farming / growing my $LUNA? My strategy going forward revealed

By n1ce | DeFi Adventures | 14 Mar 2022

Farming update!

LUNA Portfolio Overview

Portfolio Overview

This was a lot of fun: to track down where my $LUNA ended up. My biggest positions are LUNA that is currently in the process of burning bLUNA on Anchor and Stader (Stader's LunaX can also be burned for LUNA) (Blue) and auto-compounding LUNA staked with Stader (Red).

Then I have a small pool of OSMO & LUNA on Osmosis, some lockdrop left on Astroport in the bLUNA-LUNA pool and some LUNA in my wallet. And last but not least, a JEWEL-LUNA position on Defi Kingdoms.

If most of this sounds like jibberish to you, don't worry. As you dive deeper into the ecosystem, these things start to make more sense. If you want to learn more, I can really recommend danku_r's video(s) which you can find in the next section.

Why no more Mirror farming?

Mirror did not pay out high enough yields for me and I didn't like to be short on the gold price with mIAU assets shorted. I decided to invest more in $LUNA itself, with all the strategies to increase your LUNA with LUNA.

Once you understand that LUNA is an apex asset that will capture the growth of UST while paying out a handsome staking reward in LUNA, your only problem becomes that you never have enough LUNA. If you want to increase your stack without buying more, check out this excellent guide by danku_r:

Anchor Protocol

Earn: 19%~ on your dollars? Count me in!

Borrow against your LUNA? (bLUNA) Check!

By taking on some risk, I was able to increase my LUNA bag quite a bit. I bonded some of my LUNA to bLUNA and provided it as collateral in Anchor. Then I borrowed UST against it, which I used to buy (some) more LUNA. This is risky, because if LUNA drops in price, you have to pay back your loan. To do that you need extra cash or you need to sell your LUNA (which is down, so at a loss). To combat this, I always kept some UST in earn (earning me 19.5% per year, so not a bad option either)

My hypothesis was LUNA will go to the moon in 2022. I was following the LUNAomics strategy (@shigeo808 on Twitter), who was really successful with this strategy. He since then has tweaked it a bit, because LUNA is not going up in a straight line but shows quite some volatility. 

This whole experience gave me quite some adrenalin rushes, but also was not very good for my sleep and stress levels. Overall, it was worth it. But I am really happy at the moment without any loan at all. Well, I have a really safe Bitcoin loan (Liquidation in the 20k range) but let's not talk about that today ;)

Also I learned about some strategies with much better "sleep adjusted returns" like Taiki Maeda likes to call it. With staking & arbitrage, you can make similar gains on your LUNA without risking losing it. As you can see in my portfolio overview, I am not doing the borrowing strategy anymore.

Growing LUNA with LUNA

Let's go into detail, how can you grow your LUNA stack with LUNA you already have?


Stader is an amazing company that wants to become the "Amazon of staking". They offer different services around staking, making your life easier or offering more utility.

I am using the stakepools which allow me to choose a group of validators that I believe in. Stader then takes care of staking with them, reinvesting the returns (LUNA is reinvested, stablecoins are sold for more LUNA).

Staking LUNA completely hands-off with the best validators? Check.

  • Autocompounding & Airdrop collection with 1 click.
  • LunaX? Just one token you can keep in your wallet or farm that grows in value by staking in the background (similar to how aUST is growing vs. UST)

Luna Arbitrage

You can check bLUNA vs. LUNA price (or better yet set an alarm with @arbiethebot on Telegram)

Important: bLUNA can always be burned 1:1 for LUNA (takes 21 days)

Whenever you can get bLUNA cheaper (1-3%) than LUNA, this is an incredible opportunity to scale your LUNA stack! Buy it, burn it, have more LUNA in 21 days.

I am planning to write a dedicated article on this process as it can be quite daunting to understand but super profitable and risk-free once you do.


Terrabay Privacy x NFT based participation


Is working on private transactions & a mixer on Terra. A mixer let's you send money to a pool, receive a code and then retrieve the money with different wallet. That way you can move money privately on a public blockchain. Privacy is extremely important.

To kickstart the development, they auctioned NFTs, so called Ronins on Luart. The twist: by staking your Ronin NFT, you will participate in all fees generated on the TerraBay platform. This is a speculation on the successful launch of the TerraBay platform, the need for private transactions and a big volume. I speculate on the Roning floor to go up as well, once they start generating income.


And that's my portfolio update on Terra for you. Let me know if you would like to read more about my Terra endeavours in the comments.


My set for today is Ben Böhmer for Cercle:

Have a beautiful day!


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I love to teach you Decentralized Finance on Fantom and Terra ($LUNA) Follow me on twitter: https://twitter.com/n1ce34007134

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