Earn Staking Luna Tutorial by Defi Dad

Before we get started, this is not a recommendation or endorsement to buy LUNA or the future SD token by Sader.

Last week, I wrote about a liquid staking derivative for ATOM on Ethereum, called pATOM by pSTAKE. Assuming you read this and understand the value of having a liquid staking derivative, I’ve found a new staking opportunity for earning validator rewards within one of the fastest growing DeFi ecosystems–Terra. As of this writing, Terra just passed BSC to become the 2nd highest TVL (>$19.45B) among all the competing L1s with live DeFi applications. 

Stader is a new staking protocol that recently launched LUNA staking pools in November 2021. While Anchor protocol saw over $3.3B in collateral deposit by November 15th this year, most of which is bLUNA (bonded LUNA) representing staked LUNA, Stader saw an opportunity to improve upon this popular form of staked LUNA that would be just as convenient, but provide even higher returns while promoting decentralization of LUNA staking and enabling stakers to still claim Terra airdrops.

What many fail to understand when they hold bLUNA to borrow UST against in Anchor is that they give up their validator rewards from staking LUNA, and they miss out on many Terra-based airdrops. They also have no say in where their LUNA is staked, which has been criticized as contributing to a less decentralized community of LUNA stakers. Today, Anchor makes up about 43% of all TVL on Terra so it’s very important that more staking on-ramps become liquid and available for LUNA or else the network risks placing their trust in a single point of failure–Anchor.

Stader helps stakers discover staking solutions and get