Wolf of DeFi Expressed:  LUNA is the token we all fell in love with. To mint UST the equivalent dollar amount of LUNA have to be burned. The more UST is minted, the less LUNA is circulating so the more value one LUNA has.

LUNA is the basic version of the token; this is the token that’s available on exchanges like Binance and Kucoin.  To get access to all those different types of LUNA you need to send your LUNA from the exchanges to a Terrastation wallet.

Let’s begin with the one we’re probably most familiar with: bLUNA. In order to take out a loan in UST on anchor_protocol.  You need to provide collateral. This collateral needs to be deposited in the form of bonded assets. Currently you can choose for ETH or LUNA.

To take out the loan, you have to bond your LUNA.  By doing this you mint bLUNA. Once you have this bLUNA deposited as collateral you can now take out a loan in UST. You can now invest with this UST while still keeping your LUNA.

This is a very interesting option to use your LUNA. If you want to do this, please be aware of the fact that you can be liquidated once the price of LUNA drops.

Next one: LUNAx. As we all know once you stake your LUNA it is locked. You can’t use it elsewhere. LUNAx is made by staderlabs to make liquid staking available.  If you do want to have the LUNA staking rewards, I recommend you to stake at staderlabs.

If you use the liquid staking option, you’ll get LUNAx in return for staking your LUNA. This LUNAx can you use to provide liquidity which creates more capital efficiency.

So, what is nLUNA? As I just explained, when taking out a loan in anchor_protocol. There is a risk to get liquidated. Because many people face this risk, Nexus Protocol built an anti-liquidation protocol.

To use Nexus Protocol you have to deposit your bLUNA in their dApp instead of in Anchor Protocol. Do you get the same loan? No. To be able to ensure you don’t get liquidated the UST loan is managed by Nexus Protocol.  They make your UST yield.

By depositing your bLUNA into Nexus Protocol nLUNA is minted. You can use this nLUNA to provide liquidity in a pool paired with PSI, Nexus Protocol’s token. Why is this interesting?

Usually unbonding your bLUNA takes 21 days. Now you can swap your nLUNA against PSI and swap your PSI for LUNA. This means you can almost instantly make your bLUNA liquid again.

These were the different types of LUNA currently available. But there is more to come! Prism_protocol will bring us pLUNA and yLUNA. So what are those? Prism_protocol gives you the option to split LUNA into a yield token, yLUNA, and a principal token, pLUNA. By doing this, you can either go leverage on the price of LUNA or on the yields of LUNA without having the risk of being liquidated.

You’re more interested in the yields? Split your LUNA, sell your pLUNA, buy more yLUNA and you now are more exposed to the yield and less to the price. Of course, you can also do this the other way around.  You want both staking rewards and LP rewards? Stake your yLUNA, provide liquidity with your pLUNA and there you go! The options to use your LUNA will explode once Prism Protocol launches.

I’m sure this is only the beginning and I might even forget something that’s already here or announced. As you know, I think LUNA is the greatest asset ever existed. With all these use cases, the demand will only increase.  Not even speaking about the decrease in LUNA because the UST minting. LUNA is just getting started. In a year we’ll all be amazed by everything that’s possible with LUNA. The future is beautiful.