"WHAT THE F*CK IS $pLUNA?" Say no more!
Finally it's here, the COMPREHENSIVE GUIDE to $pLUNA πππ
A threadπ§΅for all #LUNAtics, #THORChads and those just looking to invest in strong fundamentals π
Finally it's here, the COMPREHENSIVE GUIDE to $pLUNA πππ
A threadπ§΅for all #LUNAtics, #THORChads and those just looking to invest in strong fundamentals π
1/ The overview
1. What is $pLUNA? (tweet no. 2)
2. What can you currently do with it?π° (tweet no. 7)
3. What will you be able to do with it #soon?π (tweet no. 10)
LFG!
1. What is $pLUNA? (tweet no. 2)
2. What can you currently do with it?π° (tweet no. 7)
3. What will you be able to do with it #soon?π (tweet no. 10)
LFG!
2/ What is $pLUNA?
To understand $pLUNA, we must first introduce its parent: @prism_protocol and their one-of-a-kind "refraction" mechanism that they recently introduced to the @terra_money ecosystem.
To understand $pLUNA, we must first introduce its parent: @prism_protocol and their one-of-a-kind "refraction" mechanism that they recently introduced to the @terra_money ecosystem.
3/ By refracting your $LUNA on @prism_protocol , you are effectively splitting it into an equal amount of its two components:
- $yLUNA (detailed guide coming #soon!) and
- $pLUNA
- $yLUNA (detailed guide coming #soon!) and
- $pLUNA
4/ Many seem to still be struggling as to "why" such a refraction mechanism, i.e. the splitting of $LUNA, is necessary.
The answer...
The answer...
5/ The team at @prism_protocol identified the chance for a whole myriad of use cases if multi-functionality (staking, governance, etc.) tokens could be split into sub-tokens that are each assigned a part of the original token's functionalities.
6/ A TVL of already > 300mmπ€―seems to confirm their idea, although the true extent of @prism_protocol's capabilities will become more and more apparent in the coming weeks and months!
Anyway, we digress...
Anyway, we digress...
7/ Now that we've covered that $pLUNA is a synthetic sub-token representing a part of the underlying $LUNA, let's look at:
What can you currently do with $pLUNA?π°
What can you currently do with $pLUNA?π°
8/ Currently, $pLUNA's functionality is admittedly limited. You can..
- trade it on @prism_protocol's AMM DEX or you can
- earn trading fees from #liquiditymining in the $pLUNA/ $PRISM pool
- trade it on @prism_protocol's AMM DEX or you can
- earn trading fees from #liquiditymining in the $pLUNA/ $PRISM pool
9/ Another worthy mention is $pLUNA's ability to unlock premium features on @coinhall_org. As one of @prism_protocol's validators they deserve a huge shoutout for recognizing $pLUNA's potential early on!β€οΈ
10/ Despite all this, current $pLUNA functionality is limited, there's no denying that.
This current lack of functionality is why we have seen $pLUNA trading at a significant discount to $yLUNA.
This current lack of functionality is why we have seen $pLUNA trading at a significant discount to $yLUNA.
9/ At @pLUNADAO we believe the market to severely underestimate $pLUNA and we want to educate the broader @terra_money community, on why that might be the case!
So...
So...
10/ What will you be able to do with it #soon?π
This aspect is crucial to understanding the long-term value proposition that $pLUNA offers.
This aspect is crucial to understanding the long-term value proposition that $pLUNA offers.
11/ Collateral
As TVL on @prism_protocol continues to increase, more & more projects within the @terra_money ecosystem are recognizing the win-win situation for cross-protocol integrations of #refracted assets.
As TVL on @prism_protocol continues to increase, more & more projects within the @terra_money ecosystem are recognizing the win-win situation for cross-protocol integrations of #refracted assets.
12/ One of the major use cases will be the ability to lend against $pLUNA, i.e. use it as collateral. We've said it before: Only a matter of time until we see the $pLUNA on:
- @TeamKujira π
- @EdgeProtocol πͺ
- @mars_protocol πͺ
- @Levana_protocol π
- @TeamKujira π
- @EdgeProtocol πͺ
- @mars_protocol πͺ
- @Levana_protocol π
13/ Further, and this is a big one as well: #Governance rights of the full underlying $LUNA belong solely to $pLUNA.
What that means: You can currently get liquidation-free leveraged exposure to $LUNA governance rights by buying $pLUNA π²
What that means: You can currently get liquidation-free leveraged exposure to $LUNA governance rights by buying $pLUNA π²
14/ At current ratio that is 4.5 $LUNA votes for the price of 1π
If you're thinking: Well, but I don't care about on-chain #governance, I rarely ever vote on something in the first place...
If you're thinking: Well, but I don't care about on-chain #governance, I rarely ever vote on something in the first place...
15/ Well, we could try having @anchor_protocol and @JunoNetwork telling you about their recent showcases about the importance of governance..
or...
We might simply say, "#bribes are coming".
That means you'll be able to earn a substantial APR for voting with your $LUNA.
or...
We might simply say, "#bribes are coming".
That means you'll be able to earn a substantial APR for voting with your $LUNA.
16/ If we look at other networks, we can easily see #bribe APRs of > 20 %.
What's 4,5 x 20 %? The then attainable yield on $pLUNA bribes at current market prices ππ
What's 4,5 x 20 %? The then attainable yield on $pLUNA bribes at current market prices ππ
18/ And that's it: We hope you enjoyed this guide on $pLUNA πππ
What you make of this information is up to you...
In the meantime, come join us at @pLUNADAO to stay in the loop and not miss out on any developmentsβ€οΈ
What you make of this information is up to you...
In the meantime, come join us at @pLUNADAO to stay in the loop and not miss out on any developmentsβ€οΈ
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