Top 5 High-Yield DeFi Farms For Terra (LUNA), According to Altcoin Buzz
One of the best performers in recent weeks in the market is Terra (LUNA). As a top 10 project, many of you have LUNA in your portfolios already. So why not put it to work and earn a little extra by farming.
In the latest video, Altcoin Buzz has highlighted the top 5 great farming options including a couple that reduces the risk for impermanent loss to almost zero.
There are a lot of great projects in its ecosystem in its orbit and first of all, we’re talking about Anchor (ANCT). Anchor aims to offer token users long-term price stability, preservation of purchasing power, and protection against inflation while hedging against daily market volatility.
Anchor is not a farming option at least not in the traditional sense it’s kind of like a bank-type savings and investment option in that way. It’s a good option for us. You can deposit UST and receive a UST like a receipt that you can use elsewhere and earn 19.4% while doing. So it’s a pretty good deal.
Anchor is a borrowing platform, too. And they use three kinds of collateral before extending loans in UST. They are bETH (bonded Ethereum), bLUNA (bonded LUNA), and sAVAX (staked AVAX).
Farm number two on our list today is Osmosis (OSMO), which is both its own blockchain and it’s also a decentralized AMM (Automated Market Maker) having its own blockchain.
The other unique thing is that all IBC tokens can trade on it. IBC is Inter Blockchain Communication or a part of the Cosmos Protocol (ATOM). So all blockchains built on Cosmos can trade their tokens here including Cosmos, Crypto.com (CRO), Secret (SCRT) Cavapoo (CAVA), and Terra (LUNA).
So, with that in mind, there are two excellent pools on Osmosis that we could take advantage of LUNA/UST to begin with that’s pool number 562. A LUNA/UST pool would be a natural fit it pays an excellent rate of 43.76% on two coins.
The second pool number 565 is LUNA/ATOM. We partner LUNA with ATOM and this pays 32.51%. And then you must decide if you want to keep the ATOM or sell it for more LUNA or maybe some other coin.
One important thing to note is that when you bond these assets to stake, your APR goes down if you decide to do a one or seven-day unbonding process instead of 14 days during unbending. And you aren’t earning anything.
Farm number three is Edge (EDGE). Edge is the infrastructure of Web3. A peer-to-peer network and blockchain providing high-performance decentralized web services, powered by the spare capacity all around us.
It’s a lending protocol. So you can supply LUNA to earn interest in a single-sided sticking environment. If you do, then you can earn 1.88% on EDGE with no risk of impermanent loss. But that’s not much.
We can take it one step further go bond your LUNA into bLUNA, so you can earn sticking rewards on your LUNA, and then you can also deposit that be luna into EDGE and earn an additional 6.88%, which is better.
Spectrum Token (SPEC)
The fourth farm is Spectrum Finance. This is a yield optimizer and one of the benefits here is that it can give us better yields than the place where the farm originates.
LUNA/UST on Astroport (Astroport is an automated decentralized exchange protocol building on the Terra blockchain) pays 10.03%. That’s pretty good and on two coins
But on Spectrum, by agreeing to get paid in their native SPEC token, we can earn 28.67% interest. You can also swap your SPEC right away for UST as well. If you choose so, then you could add LUNA or maybe even some of both LUNA and UST to add to this pool. If you choose option two is LUNA and bLUNA, this pool gives us the benefit of almost no risk of impermanent loss. Astroport gives us a nice bump from 12.47% to 15.36% to get paid in SPEC.
The last farm on the list is Astro (ASTRO). It’s a decentralized exchange in the Terra system. Astroport has an excellent LUNA farm that Spectrum is not covering and that farm is stLUNA/LUNA.
So stLUNA is LIDO steak LUNA. LIDO is one of the leaders in liquid staking so you can earn rewards and help keep your favorite network secure while also staking liquid for other investment opportunities.
On LIDO, you will stake your LUNA and earn 7%, then your liquid token like with AUST for USD deposits on Anchor is still stLUNA, which we bring to Astroport. This pool pays 18.98% and that’s on top of the 7% sticking you earn on the stLUNA portion.