Cosmos and Terra liquidity alliance Arbitrage

The Cosmos ATOM community can tactically take advantage of Terra’s Liquidity Alliance (through Eris Protocol) to optimize returns by encouraging cross-chain cooperation Opportunity Overview: • Whitelisted Cosmos Assets: ATOM and other Cosmos ecosystem tokens are whitelisted for Terra’s Liquidity Alliance rewards, allowing high-yield farming on Eris Protocol. • Current Rewards: $6.2M/yearly rewards from LUNA chain inflation if LUNA is stable at $0.33. If it moves to higher then the rewards are reciprocated and increased with it. • Upside Potential: Up to $62M / annually if LUNA hits $3.3 (10x multiplier). • 0-Day Unbonding: Their is no lockup time period in terra liquidity alliance so, we can get access to liquidity immediately. we can built many strategies around it to reap the most benefits from it. 1. Strategy: Playing the Spread • Borrow Low Rates (<5%): We can simply use decentralized lending platforms (e.g. Mars Protocol ,etc) on Terra/Cosmos to borrow stablecoins or LUNA against ATOM collateral. • Kava or Umee (Cosmos-native) platforms needs to consider when borrowing they might offer competitive rates. Farm High Yields (300%+ APY):…

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