LunaX Degen Vaults

Launch of LunaX Degen Vaults: Rewards & Strategies

LunaX Degen Vaults
Launch of LunaX Degen Vaults

Context & Background

Stader launched LunaX (aUST type liquid staking derivative on Luna) early Dec 2021.

a. LunaX holders are eligible to receive staking rewards and airdrops.

b. Staking rewards are claimed and auto-compounded daily increasing the price of LunaX daily.

Over ~15440 unique wallets have minted LunaX on Stader’s liquid staking contract.

  • Total staked Luna: 1.35 M Luna (as of 27th Jan 2022)
  • Size of LP on Terra swap: ~1.65 M Luna (as of 27th Jan 2022)

LunaX Integrations

We are actively working on integrating LunaX as collateral across Mirror and several money market protocols on Terra.

Refer here for our poll on LunaX integration with Mirror. Dev teams are working on the integrations. We will have an update on this in 1–2 weeks.

Beyond Terra, we are working with several MM protocols and DEXs across Solana, Fantom etc. to integrate LunaX.

LunaX Degen Vault

One of our community members inspired by Saffron Finance and Barn Bridge has brought this up to our attention.

The main idea behind the vault is to simplify the decision making of users regarding discovery and usage of further strategies on top of LunaX. Below are the key elements of the vault.

  1. Vault and Strategy Manager
  2. Tranches based on risk vs. return
  3. Unlocking platform with LunaX vault

1. Vault and Strategies

Vault is a smart contract that takes LunaX deposits and has the authority to deploy LunaX across DeFi protocols selected by Strategy Manager. There could be several vaults and each vault will be associated with a strategy, time lock etc.

Strategies are a predetermined set of functions that will be performed by a strategy manager (smart contract). Illustration of a few strategies below (starting position is 100 LunaX):

a. Leverage 100 LunaX for 3000 UST on MM

  1. Deposit 1000 UST on Anchor, mint mAssets with aUST
  2. Buy Luna for 1000 UST.
  3. Provide Luna <> UST LP

b. Leverage 100 LunaX for 3000 UST on MM

  1. 2x Leverage stake Luna with 1000 UST
  2. Buy Luna for 2000 UST, stake 1000 Luna to get ~1000 LunaX
  3. Provide Luna <> LunaX LP

2. Tranches Based on Risk and Return

LunaX depositors will have an option to select the risk level they want while depositing. The yield generated by the LunaX degen vault will be tranched and allocated to people selecting different risk levels. E.g. For a vault with 2 risk levels (High and Low)

a. Depositors selecting low risk may get guaranteed 20% APY on their initial LunaX deposit. Remaining yield is automatically allocated to high risk depositors.

3. Unlocking Platform with LunaX Vault

In phase 1, there will be 1 vault with a set of strategies (with 1 lock-in period)

Phase 2 will have multiple 4–5 vaults with different strategies (with 2–3 lock-in periods)

Phase 3 will unlock platform power with freedom to create any type of vault and strategy

Next Steps

We are actively looking for teams/developers to build the LunaX vaults and strategies on top of it. Interested teams should reach out at link and tag vbrpm#6808 (Product@Stader).