Terra Lending Protocol - Mars is launching
Mars is another pillar of Terra ecosystem. Recently I wrote about Anchor, the savings protocol that yields a stable 20%! To be a complete financial ecosystem, Terra created this lending protocol - anyone can lend, borrow and earn with an autonomous credit protocol, on Terra blockchain.
A lending protocol is not new. Sushi, Aave and Solend are some of leading protocols on other blockchains. The lending market is proven and huge. So its a big thing for Terra.
The launch - Airdrops!
There are a few ways to earn MARS lockdrop/airdrop.
As you can see, Phase 1 lockdrop is rewarding 50,000,000 MARS!
From Feb 21-26 (5 days period), you can start to participate in the Phase 1 lockdrop.
You will be able to lock UST in Mars’ Red Bank in exchange for an upfront distribution reward of the MARS tokens, which are claimable once Mars launches.
The longer you lock in, the higher the boost.
Earn lending yield
The locked UST deposits will also earn lending yields. How much is the yield? That depends on the borrowing demand.
A good reference is on Solend, where UST borrow rate is ~10%. That is not surprising because if one can borrow at 10%, he can deposit on Anchor to earn 20%, so net net he will earn!
Hence, the lending yield should be near 20%.
It’s a good investment, with the lockdrop rewards. I shall send some UST over 😀