After weeks of gathering information, I proudly present to everyone, all that you need to know about @NexusProtocol's current product and what they have planned for the future!
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1. @NexusProtocol is a highly innovative Yield Aggregator. Their main goal is to create and simplify highly lucrative yield farming strategies so that you do not have to do all of the work yourself.
2.1 Lets take a look at their very first product, the nAsset Vault! What the vault essentially does is to boost your APR of your $bLUNA and $bETH even further, utilizing the Borrow and Earn side of @anchorprotocol. This is how it actually works β¬
2.2
1. Deposit bAsset into Nexus ($bETH, $bLUNA)
2. Get $nAsset back, acts as the ticket to claim your yield
3. Nexus takes your $bAsset, deposits into Anchor as collateral to borrow $UST
4. gets $ANC rewards from Borrow, sells it for $PSI
1. Deposit bAsset into Nexus ($bETH, $bLUNA)
2. Get $nAsset back, acts as the ticket to claim your yield
3. Nexus takes your $bAsset, deposits into Anchor as collateral to borrow $UST
4. gets $ANC rewards from Borrow, sells it for $PSI
2.3 (Continued)
5. deposits $UST borrowed into Anchor to earn 20% APY
6. yield redirected to buy $PSI
7. 89% of the total $PSI accrued distributed back to Vault as APR
8. For the remaining 11% of $PSI accrued, 25% goes to community pool, 75% goes to governance stakers.
5. deposits $UST borrowed into Anchor to earn 20% APY
6. yield redirected to buy $PSI
7. 89% of the total $PSI accrued distributed back to Vault as APR
8. For the remaining 11% of $PSI accrued, 25% goes to community pool, 75% goes to governance stakers.
3. Currently, the Vault APR for $nLUNA sits at a whopping 12.80%, the highest yield out of all of the single $LUNA staking available on @terra_money! Definitely not something to be faded on..
4. Then you may ask, given that Nexus is borrowing on Anchor, is there a risk of liquidation happen? Fret not! Nexus is actively managing your LTV ratio! In the event where the value of your $bAsset dips, Nexus will automatically manage your position!
5. Till date, there have been ZERO liquidations on the $bAssets that Nexus is managing even with all of the price action. A massively impressive feat if you ask me.
6. @NexusProtocol has an impressive suite of products lined up for release in the future! The more confirmed ones are:
1. Mirror Short-Leverage aUST Farm
2. Liquidity Pool Money Market
3. On-chain Rebalancer Vault by @Cephii1
1. Mirror Short-Leverage aUST Farm
2. Liquidity Pool Money Market
3. On-chain Rebalancer Vault by @Cephii1
7. Do note that nothing has been confirmed and the details shared may be subjected to changes! With that, let us go into the breakdown!
8.1 Mirror Short-Leverage $aUST Farm
1. Deposit $UST into Nexus
2. Nexus deposits $UST into Anchor to mint $aUST
3. $aUST is used as collateral on @mirror_protocol to borrow $mAssets
4. $mAssets are immediately sold on @terraswap_io for $UST
1. Deposit $UST into Nexus
2. Nexus deposits $UST into Anchor to mint $aUST
3. $aUST is used as collateral on @mirror_protocol to borrow $mAssets
4. $mAssets are immediately sold on @terraswap_io for $UST
8.2 (Continued)
5. $UST acquired is then deposited into Anchor to loop step 2 to 4.
6. Stacks Anchor yield, similar to degen box, resulting in a higher APY than just depositing on anchor itself, roughly around 35% APY as compared to just $19.5% APY on Anchor!
5. $UST acquired is then deposited into Anchor to loop step 2 to 4.
6. Stacks Anchor yield, similar to degen box, resulting in a higher APY than just depositing on anchor itself, roughly around 35% APY as compared to just $19.5% APY on Anchor!
9.1 Liquidity Pool(LP) Money Market
1. deposit LP (e.g. $LUNA-$UST) into Nexus to earn deposit yield
2. Provide LP as collateral
3. Borrow asset based on the LP provided ($LUNA/$UST in this case)
1. deposit LP (e.g. $LUNA-$UST) into Nexus to earn deposit yield
2. Provide LP as collateral
3. Borrow asset based on the LP provided ($LUNA/$UST in this case)
9.2 (Continued)
4. Deposit and Borrow APR will be rebalanced and shared between Borrowers and Depositors to match supply and demand
5. Your LP earns APR from swap fees, allowing your collateral size to increase over time.
4. Deposit and Borrow APR will be rebalanced and shared between Borrowers and Depositors to match supply and demand
5. Your LP earns APR from swap fees, allowing your collateral size to increase over time.
9.3 (Continued)
7. LP with the underlying asset paired with a stable coin ($UST) has less exposure to the price movement of the underlying asset due to the LP rebalancing mechanism, decreasing your risk of liquidation if the asset dips!
7. LP with the underlying asset paired with a stable coin ($UST) has less exposure to the price movement of the underlying asset due to the LP rebalancing mechanism, decreasing your risk of liquidation if the asset dips!
10.1 On-chain Rebalancer Vault by @Cephii1
1.Deposits $LUNA and/or $UST into the Vault. The ratio of $LUNA:$UST will be the ratio that the Vault will rebalance to.
1.Deposits $LUNA and/or $UST into the Vault. The ratio of $LUNA:$UST will be the ratio that the Vault will rebalance to.
10.2 (Continued)
2.Assume that the Vault has a set standard deviation of 1.5% for the trades to happen.
3.When $LUNA increases by 1.5%, the Vault sells a portion $LUNA for $UST.
2.Assume that the Vault has a set standard deviation of 1.5% for the trades to happen.
3.When $LUNA increases by 1.5%, the Vault sells a portion $LUNA for $UST.
10.3 (Continued)
4.If $LUNA continues to increase by 1.5% or more, the Vault will continue selling $LUNA for $UST until it runs out of $LUNA.
5.Likewise, if $LUNA dips by $1.5% or more, the Vault accumulates $LUNA using $UST until $USTβs balance runs out
4.If $LUNA continues to increase by 1.5% or more, the Vault will continue selling $LUNA for $UST until it runs out of $LUNA.
5.Likewise, if $LUNA dips by $1.5% or more, the Vault accumulates $LUNA using $UST until $USTβs balance runs out
10.4 (Continued)
This allows for you to take profits when $LUNA is mooning and accumulates when $LUNA is dipping, essentially allowing you to automatically buy at Lows and sell at Highs.
This allows for you to take profits when $LUNA is mooning and accumulates when $LUNA is dipping, essentially allowing you to automatically buy at Lows and sell at Highs.
11. That's all folks! If you are interested in knowing about all of the upcoming products, there are more in-depth discussions happening over at @NexusProtocol's Forum!
forum.nexusprotocol.app
forum.nexusprotocol.app
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