Make $10k with low risk 16% APR on my favourite LUNA staking strategy đź•ş
We all love our LUNA and for good reason. If you are bullish and believe it could hit $500 by 2022, then the only question is, do you put it to work for you with staking. Or, do you leave it in a CEX for a 5% yield? Naaah, lets put it to work in astroport for a healthy 16%.
Introduction
So, lets assume you have 100 LUNA right now, how do you make a healthy $10k profit over and above what you are getting from an increase in price. Be sure to read the conclusion, but lets get going…
You can certainly attempt to time the market with trading, or you can buy your favourite coins and stake them to make them work hard for you. I could not agree more with Miles more. I am not taking any LUNA profits and I am along for the ride.
LUNA has turned out to the biggest percentage of my portfolio. I want more, but dont want to purchase right now. One of my favourite LUNA DeFi options is on astroport. Lets dive in…
Swap LUNA to stLUNA
The pool we will invest in is a LUNA/stLUNA pool. I like this pool as there is a very low impermanent loss (IL) risk, while the stLUNA is a special staking LUNA token which auto compounds for you.
Thus you get a slightly higher APY than when using the LUNA/BLUNA pool.
Using the swap tab, you can now swap 50% of your LUNA for stLUNA as below.
Now, you can head over to the Pool and after finding the right pool, you can click on the manage button.
Now, you can deposit your tokens as below.
Congratulations, you are now staking for a healthy 16% APR.
Claiming your rewards
Now, since I want to stack more LUNA, I go in on a weekly basis and claim the rewards. You will now receive ASTRO and weLDO tokens as rewards.
I hear you… You are saying “Well, I don’t want these… I want LUNA”.
No problem…
Compound back to LUNA
Simply swap both tokens back for LUNA and repeat the staking steps above.
Conclusion
This is my favourite LUNA strategy. Its low risk and the ASTRO/weLDO price is not too important, since I swap them weekly back to LUNA. The APR should be increased to just under 20% with with weekly compounding.
So, if you are bullish on LUNA and you have 100 tokens, by the end of 2022, you should have 120. Now if you believe LUNA could hit $500, that would make it a healthy $10 000 profit over and above gains on your your original 100 coins.