![image.png](https://images.hive.blog/DQmXhxtDen9hiUF83YqdcUk2DtsjwSbgmfXt2JZWga19aLA/image.png)

I've been in crypto for quite a while now, and have helped some of my relatives and friends get into it. Most of the people who join experiment a mix of fear and curiosity but also some grade of disbelief on what you explain them. Market volatility is something we are not used to dealing with and that alone comes always to their mind.

I've been experimenting with Terra blockchain for a few weeks now. As with many other blockchain services, it takes you a while from the very first time you hear about them to take a deep look, but when you do, those which are innovative just blow your mind.

![image.png](https://images.hive.blog/DQmczNSnVgcs3vdUZqcW1UsuWEefMuA3uktDGuXNnamdk11/image.png).

Terra is a proof of stake blockchain born in Korea and having stablecoins in mind. You can get LUNA, its native token and stake it into one of the validators to get an extra passive income of around 5% annually.



![Screenshot 2021-09-12 at 10.40.15.png](https://files.peakd.com/file/peakd-hive/santigs/23tHb6kphn3v7SvR35sw5yyf3VqYPp8Fwoh5Vjob2iAETE71DpzUdRr1d2s7t9TgQXnh3.png)
[Source](https://www.stakingrewards.com/earn/terra/)



One of the nice properties of Terra is that transaction fees are quite reasonable, similar to those in L2 EVM chains as BSC or Polygon, but Terra lets you choose between paying them with their native token or with its USD pegged token, the UST. That alone is a nice important difference between other chains, especially the very first time you send some UST to [Terra Money](https://www.terra.money/), the official walled using [Terra bridge](https://bridge.terra.money/) from Ethereum or Binance Smart Chain if you want to swap it to LUNA tokens to stake them you can select to pay the fees with UST instead of LUNA and go over the typical problem other chains have to solve with faucets.

![image.png](https://images.hive.blog/DQmZs3Xvq5Pett2vruuwbHfoG3rK42Ja2Ck8Ju5FWxi1RvE/image.png)

Now, [Anchor Protocol](https://anchorprotocol.com/) is one of the first DeFi services which launched in Terra chain, it basically lets you lend and borrow LUNA for a fee, that alone makes not too much difference from any other Eth DeFi services, the point here is that Anchor offers lenders a guaranteed 19-20% APR if they lend UST.

![image.png](https://images.hive.blog/DQmc5YweMLYQgVwovefYLEkrMF8sprhZpY91uVBrBggJeUY/image.png)

Now, if we think for a moment in the reasoning on someone who has never been into crypto before, you are showing him a service where he gets a minimum of 19% APR on a crypto equivalent to USD, without suffering the volatility of a crypto asset. The comparison between that APR and the one they get from their regular bank account is immediate as they may get 0,00001% APR if any.

![image.png](https://images.hive.blog/DQmer1QQ3ksWbbNMH35AbZesat2S89W4RebmZU4mkN8mmKi/image.png)

Once you get it, using such a product, you may feel interested in digging some more into the yield possibilities adding some small extra effort, so adding that passive income strategy with a delta neutral (going long and short in the same asset avoiding risk and earning farming tokens) strategy with [Mirror Finance](https://mirror.finance/) on any asset may easily increase that 20% to a 40% APR.

https://www.youtube.com/watch?v=Ttqo4s6is5c&feature=emb_logo



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