Good morning Lions and Hivians, do we have something pretty exciting for you today to report on over at the Terra Network. This one is quite fresh so if you're looking for something new to wet your whiskers on this might be up your ally.
LOOP Token is the native governance token for the Decentralised Exchange launching on Terra Network and at current it is still really early days which means if you want a relatively safe investment you can provide liquidity through participating in the ICO on Pylon Gateway here depositing UST for one of the minimum lock up terms will provide you with the following APR:
POOL 1: 390.26% APR
18 months total vesting.
Rewards claimable starting after 9 months.
Pool 2: 300.96% APR
12 months total vesting.
Rewards claimable starting after 6 months.
Pool 3: 140.99% APR
6 months total vesting.
Rewards claimable starting after 3 months.
At the end of your vesting period you receive your full UST deposit back and is what it referred to as Pylons No Loss Investment just make sure you add it to your tax report at the end of the year. I am currently seeking clarity on if this is declared as income or CGT as once again, a new model has emerged in Crypto and the ATO will need to do more work around providing clarity to investors and hobbyists a like.
Alternatively you can head over to LOOP and purchase the tokens and stake them or provide liquidity here
What is LOOP Finance?
Click here to join now (source)
LOOP is more than just a decentralised exchange on the Terra Network it is also a tokenized community similar to Hive where DEX participants who hold an account can also blog and provide educational content to be curated by the community. but lets take a look at the Decentralised Exchange side of things first.
Image Source
As the DEX has just launched with Luna Stakers receiving their Airdrops the native governance token is trading at 0.97 UST. It is important to note that UST often trades just over $US1 at times. So you'd be picking up LOOP for around $1 currently.
As you can see the Decentralised exchange is similar to other DEX's but for Terra Network this is quite significant as at current the only exchange listed on the Network is in Terra Station.
The swap is fantastic for switching quickly between Terra Tokens however the fees generated here do not go to everyone and are provided to Luna Stakers. As the cost of Luna has been significantly rising the past few weeks to access these fees will become out of reach for many.
LOOP distributes 25% of income derived from fees to LOOP stakers and LP providers based on their market share. They will also be actively participating in buy back and burns.
Furthermore LOOP finance also has the aim of interoperability with external block chain tokens being listed on their DEX. At current there are limited external tokens accessible on Terra with Anchor Protocol currently holding the largest amount of BEthereum which is the wrapped version of Ethereum and people have been providing it as collateral for loans. You can get a more in-depth look into LOOP here
LOOPR Tokenised Community
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Before you go rushing off to sign up please note this is no where near the level of Hive and I think (could be wrong) this is a centralised blog. However, it is quite similar to Hive/Leo Finance with the same blog type of posting that we use to write our blogs. So if you do head over you will be familiar with the format.
Payouts are also a seven day waiting period to account for inflation but there is something a little different where users do not hold weight in their votes through staked LOOPR but rather ranking which again is increased by the amount of ratings you receive (upvotes?).
I found a really basic explanation on it here but lets be honest I am not the best at even understanding the tokenomics of Hive/Leo and just upvote content I like which costs me in maximising my returns but I have fun anyway.
Weekly tasks to maximise payouts
Something a little different to Hive/Leo is the weekly tasks required to receive your full payouts which rewards peoples engagement and rating others. It's not too overbearing you just need to give a minimum of 10 ratings, 10 comments and 2 posts per week to receive 100% payout. For many of us on Hive/Leo we'd do that in the day.
There is a limit to posting and users on LOOPR can only post once a day.
LOOPR is currently trading at 0.006UST but did open at 0.1UST
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So who knows perhaps we're looking at the next Decentralised Blog in the making. Either way I have popped a Leo Finance blog on the site and referenced it to here and received a rating.
Besides that I think having a community owned DEX on Terra Network is a wonderful idea and will do well to ensure the network attracts more investors. It is important to note that LP and staking rewards are not active yet but the DEX does say Liquidity Providers will be offered airdrops for being early LP's. Given the cost required is quite low investors may see a decent ROI on being in early as Decentralised Exchanges tend to be a sought after investment opportunity.
Image Sources provided, This is not financial advice and readers are urged to to their own research or seek professional services