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Vladislav Sopov

Pseudonymous DeFi expert Route 2 Fi (@Route2FI on Twitter) shares design details of most impressive protocols on Terra (LUNA) and views on the protocol’s prospects


Crypto analyst and DeFi educator @Route2FI claims that the LUNA token of Terra blockchain might be undervalued and describes its most interesting protocols.

“Plenty of opportunities to earn yield” on Terra

Mr. @Route2FI is certain that the LUNA price has space to grow but admits that his take may be biased due to personal excitement about the Terra ecosystem.

He displayed the most interesting protocols of Terra’s family. The first one is Anchor Protocol, which allows users to stake UST, a U.S. Dollar-pegged stablecoin by Terra with an eye-watering APY of 19.5%.

Besides staking for passive income, an amazing yield can be farmed by borrowing bETH and bLUNA using Ether and LUNA as collateral. Opportunities to collateralize SOL and ATOM will be added soon to the toolkit of this protocol.

On average, the LUNA/bLUNA conversion rate is 100:105 by press time, so a farmer receives five “free” LUNA tokens while interacting with the protocol.

Bright future or big risks?

Should profits be immediately restaked, performing the procedure described by Mr. @Route2FI 8-10 times might double initial investments. At the same time, the expert warns about high risks involved in this style of “yield farming.”

As covered by U.Today previously, Terra (LUNA) is one of the most overhyped L1 networks of late Q4, 2021. Galaxy Digital CEO and seasoned Bitcoin (BTC) proponent Mike Novogratz claimed that LUNA should replace LTC on CNBC’s tickerboard.

At the same time, the ecosystem of Terra’s LUNA and UST tokens have notable vulnerabilities in terms of regulatory and technical issues.

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