Why Liquidity Pools Could Make SPS Moon

In this video, I discuss the tie in between the Splinterlands tokenomics vs the Terra Luna ecosystem. One thing that caused Luna to skyrocket in price was the Anchor protocal which offered a 20% APR on a stablecoin (UST).

Obviously Luna had a fatal flaw which allowed the burning of LUNA and UST to go both ways, but Splinterlands does not have that. You can only burn SPS for DEC, not the other way around.

One top of that, the liquidity pools pairing DEC with DAI and BUSD are currently offering between 12-15% APR - paid out in SPS. If SPS were to increase in value, you would be able to pair two stablecoins to get a potentially 30%+ APR - which is very similar to what drew so much capital into the Terra Luna ecosystem. It could potentially bring in massive ETH and BNB whales into the project purely from a defi perspective.

I have to give a shout out to @stever82 as a recent conversation with him on Twitter spaces opened my eyes to this. Make sure to check out his post where he goes into more depth on the similarities between LUNA and SPS.

https://hive.blog/hive-13323/@stever82/the-next-100x-coin-backed-by-a-top-project

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