Today I woke up with a Idea that I think could be very beneficial for Anchor and the whole ecosystem.
I’m thinking to write an article about it but before I would like to discuss it with the comunity to have some feedbacks.
Basicly it’s a Long Leveraged strategy on the Luna token. The Idea is to buy some luna, bond them and put into Anchor. Then, taking advantage of the new borrowing limit borrow some UST and bridge them to Osmosis. T
There we swap half the UST to Luna and we farm in the LUNA-UST liquidity pool (40% APR) (Luna - Osmo for the Degen ones).
Doing that we will receive Osmo token as a reward Daily. We can swap them to Luna token ( No fees at the moment) and bridge back to Terra, bond them and deposit back to Anchor to increase the collateral end the borrowing power.
It’s possible to repeat the process many times accoding to the risk appetite. The last time we borrow we can put the last UST “batch” into White whale whaiting for the luna token to rise, waiting to close the strategy.
WHY IT IS NOT A DEGEN STRATEGY ? because we are using Anchor to borrow against collateral ( in the future we can use more assets ), that is how anchor should work, and we are bringhing new liquidity into the system harvesting it from the Osmosis chain.
This is also beneficial because we also deposit some money into the arbitrage vault helping to mantain the UST peg.
Obviously there are many nuances and variation to the strategy one can come up with.
What do you think about that ?