Farming stable coins have parachuted into the mainstream decentralised world ever since Anchor protocol arrived and believe you me I have been on the cusp of developing my own protocol but two things come to mind and that's that it would be classified as a financial service and a managed fund which would require the dreaded financial services license. Which I do want to get one eventually but at current I don't have the $7500 that is required to get it.
Just launched is what I am calling the love child of Solana and Luna Soluna which enables Solana users to earn Anchor yields right on the Solana Blockchain.
The Ins and Outs
Solana Users require both a Terra and a Solana wallet which you will need to connect both wallets to Soluna where you can instantly deposit Terra UST and you will receive solUST in your Solana wallet which will accumulate an undisclosed amount of APY which is claimable once a week and the process is a fork of Pylon Protocol. So effectively Soluna is Pylon on Solana. (something to be mindful of).
You might be thinking why? if you're already on Terra and can use Anchor what would be the point of depositing into Soluna. Soluna also has a decentralised exchange called Saber where you can deposit your solUST to earn an addition undisclosed APY.
I am saying undisclosed because I can not see the % anywhere on the UI or the whitepaper.
I can understand why the APY isn't promoted as the protocol heavily relies on Anchor protocols APY which does change from time to time and unless you're keeping up with it every second you're probably going to end up misinforming your investors or providing wrong APY.
If you would like to know more about the protocol you can read the Whitepaper or follow their official Twitter and engage with the team on their official Discord.
The reasoning behind the Soluna development was announced in a devpost submission for a hackathon event where the team wanted to create a composable stable coin for Solana that leveraged Anchor Protocols yields and also able to be utilised in the Solana blockchain.
What are your thoughts?
If you're a Solana user I would also like to hear from you about your experiences, thoughts and opinions on solUST. is it worth it?
Image sources provided supplemented by canva pro. This is not financial advice and readers are advised to undertake their own research or seek professional financial services