UST stuck in LUNA-bLUNA LP

General
1

There is over 400k UST in the LUNA-bLUNA LP contract. When bLUNA is nor deposited into Anchor, the bLUNA earns a staking yield. Currently, that yield is trapped and unrecoverable for LUNA-bLUNA LP.

Shouldn’t those funds be distributed to LUNA-bLUNA LP holders or be utilized to increase LUNA-bLUNA positions for LPS? With LUNA staking yields likely to increase over the next several months, now is the time to determine how to handle this situation.

Also, why are airdrops not available to bLUNA holders?

1 Like
2

Is this an issue the community has minimal interest in?

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3

I would also like to know about this. Been LPing ~10k Luna/bLuna and would like to see something with the rewards

4

Do you have any evidence to back this assertion?

Here is the bLUNA/LUNA smart contract holdings:
https://finder.terra.money/columbus-4/address/terra1jxazgm67et0ce260kvrpfv50acuushpjsz2y0p

5 UST is a far cry short of 400k UST. Where are you getting 400k UST from?

What actually happens is that all bLUNA staking yield goes into Anchor vault and supports aUST yields, regardless of how the bLUNA is used.

Most likely answer is that the standard airdrop contract was originally written before bLUNA was a thing, and every new project uses the same contract code instead of reinventing the wheel. I don’t know the particular history here.

5

I believe @ColonelSanders is referring to the UST yield generated by the bluna held in the pool; this is the UST you’d normally claim via Anchor’s UI → Bond → Claim.

As per https://docs.anchorprotocol.com/smart-contracts/bluna/reward, we can see the now-500k UST “stuck” in the pool contract: link

IMO, this is likely an enhancement for the terraswap folks to implement. Could be a fun mini-project for community too.

(on a side-note, wonder if astroport will address this?)

6

That’s right. As per Do’s posts, we should expect LUNA staking rewards to spike up. This number of UST stuck in the pool is going to get very large pretty quickly. There’s real and significant value in unlocking the UST “stuck” in the bLUNA/LUNA pool.

7

In Uniswap v2, once a pool is deployed it is immutable (new pools needed deployed for v3 upgrade, which is why so much liquidity still takes place on v1). Since Terraswap was modeled after uniswap, it’s likely that pool contracts are immutable.

In that case, something would need done from Anchor side… perhaps a governance vote to release those funds to pass-through to the terraswap pool token holders? Again it depends on how the contracts were deployed. It’s possible that a technical solution isn’t actually possible.

8

I dont see a way for the bAsset reward contract to pass the yield through to the LPers, but actually I think you can bring the UST into the pair contract’s UST balance.

My thinking actually if the terraswap pair contract can have an execute msg that can empty out its native currency (not part of the actual pair) to some governance controlled contract.

You should give the contracts a read-through! Different eyeballs on the code are net gains for the community.