Degen Vaults Beta Launch: Starter Pack

Stader is back with another exciting product called ‘Degen Vaults’, to open up the limitless opportunity of LunaX in DeFi for the Terra…

Degen Vaults Beta Launch: Starter Pack

Stader is back with another exciting product called ‘Degen Vaults’, to open up the limitless opportunity of LunaX in DeFi for the Terra Community! Read on to learn more about the mechanism, underlying strategy and the launch plan.

Key Sections:

  • Degen Vaults Introduction
  • Beta Launch Plan
  • Beta Vault Details & What Powers It
  • What’s Planned After Beta Launch

Degen Vaults Introduction

The Terra ecosystem is growing exponentially with multiple innovative protocols going live every week. LunaX aims to be a core asset across Terra and this opens up a plethora of opportunities to earn additional yields on LunaX.

Degen Vaults will be a platform that provides #Lunatics access to DeFi strategies on LunaX designed by crypto degens. Learn more about Degen Vaults here.

Beta Launch Plan

Safety & Security of users’ funds is of utmost importance to us. Hence we are doing a guarded Beta launch which means:

  • There’s an overall cap of 5000 LunaX on the vault
  • Users are advised to keep their deposits under 50 LunaX

LUNAtic pioneers who would like to join us on this journey to build the LunaX Degen Strategy platform can start depositing their LunaX into the first vault on 7th April from 4pm UTC.

Beta Vault Details & What Powers It

The first vault is built in collaboration with Y-Foundry DAO who power the underlying strategy.

The strategy leverages LunaX as collateral on Mirror to mint mAssets. This mAsset is then swapped for UST which in turn is leveraged as deposit on Anchor.

Here’s How your Degen Vault Works:

  • The Beta vault has a Lock-in period of 1 month with the Y-Foundry DAO strategy
  • You are advised to deposit max of 50 Lunax into the vault. (Please note that once your funds are deposited, it’s not possible to claim them till the end of the Lock-in period)
  • All the funds deposited into the vault will be used to execute the strategy during the lock-in period.
  • At the end of the lock-in period, you can claim your LunaX along with the APY earned.

We will be sharing a detailed blog article with the user guide and product screenshots soon.

What Will the APY be for the V1 Vault?

As the product is in Beta phase, for the first vault, we have chosen a low-risk strategy with a short Lock-in period of 30 days.

The vault is expected to have a LunaX APY of 8–10%* ( 4–5%* APY from the underlying strategy & 4–5% APY by Stader covering the mAsset minting fee as the vault has a short duration). The above APY is in addition to staking rewards APY on LunaX.

* Returns on the vault are subject to market risks & can vary based on changes in Luna price & mAsset volatility. Stader doesn’t guarantee returns.

What’s Planned After the Beta Launch?

Post the Beta Launch, we will add multiple vaults that offer more investment choices. This would mean:

  • Strategies with higher Risk-reward ratios resulting in a broader range of APYs across vaults
  • Different lock-in periods based on your liquidity needs
  • Vaults with no lock-up
  • Vaults with more Degen Strategist

Watch out for more details & join us on the journey to supercharge returns on your LunaX!

If you would like to partner with Stader & be a Degen Strategist, please apply on the link here and our team will get back to you with the next steps.