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Many people have asked us about how to farm with LUNA.
Well, we have created a special guide whose strategy allows us to get the most out of our tokens Terra Luna (LUNA). The risks are always there, as usual, and in this case, we are subject to impermanent loss ... which is not always a bad thing.
Here is an impermanent loss calculator to get a clearer view of your next operation.
Meanwhile, let's see how to farm with LUNA!
How to farm LUNA/UST: Requirements
The strategy is as simple as it is effective, but we need some important platforms, namely:
- Terra Bridge
The tokens we are going to use are:
- LUNA ( MOON )
- UST ( $ Earth )
If you don't know how to get your USTs to Terra Station Wallet, we are drafting an article on how to send USTs to TERRA Station Wallet. Alternatively, start with the basics.
Once you have your USTs on Terra Station Wallet and have prepared the 2 platforms we mentioned above, we can start with our strategy for Farming with LUNA! Let's start!
PS: Osmosis requires as a link the KEPLR Wallet that you can download from here: Download Keplr Wallet
1) How to farm with LUNA: Bridge Earth in Osmosis
First we need to Bridging with our USTs from the Terra ecosystem bringing them to the Osmosis ecosystem.
IMPORTANT: keep some UST tokens to pay for the Gas Fees of the Bridging.
Select from our wallet KEPLR Osmosis and copy the address that will begin with "osmo".
Once approved the contract and made the Bridging of our tokens UST Terra in UST Osmosis we pass to the next step.
2) How to farm with LUNA: Adds Liquidity
Good. Now that we have transformed the USTs, we need to add liquidity to the LUNA/UST pool. So, let's go on the Osmosis platform and go to Pools
Now you will simply need to click on Pool #562 and go to Add/Remove Liquidity.
Here is what you will find in front of you, a Manage Liquidity, where we will enter the amount of USTs destined to your FARM.
3) How to Farm with LUNA: Staking LP Token
Once the previous steps are done, we are ready to staking our LP Token, and receive our welcome 63% APR.
Well, let's go back to Pools and click on Start Earning.
As a last thing, in order to receive the APR we will bond our LP tokens, locking them for a period of time ranging from 1 day to 14 days.
How to farm with LUNA: Final considerations
Compared to staking, the farm of a couple of tokens is something slightly different. In fact, we meet the Impermanent Loss.
In a few words, we can say that if $Luna during these 14 days would have a decrease of 50%, and then go down from about 80$ to 40$, we would suffer an Impermanent Loss of 5%. This is because our LP Token is rebalanced depending on the value of each token in the pair.
In our case, we are lucky because we are trading in a pair consisting of an altcoin (LUNA) and a stablecoin (UST). In a more volatile pair, the result would be very different.
For all the other tests of the case, visit the Impermanent Loss Calculator
Have you figured out how to farm with LUNA?
Did you miss something? Let's recap together:
- We did a Bridging of UST from Terra to Osmosis via Terra Bridge.
- Once brought on Osmosis we head on Pools
- We add liquidity in single asset UST
- Staking our generated LP Tokens
Also, if the guide wasn't entirely clear to you, here's an explanatory video showing all the steps!
The video is in Italian, but you can just watch it even if you don't understand the language :D
The original version of this article is published . I also published an Italian version here on publish0x
**This article was written by the GoInvest team. Each guide is for informational purposes only and does not suggests any form of investment or savings plan or, much less, financial advice. You can read our official articles in our website.
This guide is intended for informational purposes only. We don't assume any responsibility for losses incurred during these steps or during the investment period.Do your research and be responsible.
