> For the complete documentation index, see [llms.txt](https://juris-protocol.gitbook.io/juris-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://juris-protocol.gitbook.io/juris-protocol/juris-protocol/user-strategies-and-optimization.md).

# User Strategies & Optimization

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This chapter distills practiced, battle-tested tactics that turn Juris Protocol’s toolkit into a performance engine—whether your goal is passive yield, directional bets, risk-hedged carry, or opportunistic trading. Each strategy is mapped to concrete in-app actions and accompanied by strict risk controls.

> \[!CAUTION]
>
> Heads-up: None of these ideas constitute financial advice. Use small position sizes first, set price and health-factor alerts, and stay within your own risk tolerance.

***

### Classic Yield Strategies

These strategies are designed for users seeking reliable, lower-maintenance growth with minimal volatility.

<table data-header-hidden><thead><tr><th></th><th></th><th></th><th width="196"></th></tr></thead><tbody><tr><td><strong>Name</strong></td><td><strong>How It Works on Juris</strong></td><td><strong>When to Use</strong></td><td><strong>Execution Steps</strong></td></tr><tr><td>Stable-Earn</td><td>Deposit $USDC or $USTC into the Lending pool to collect variable APR based on pool utilization.</td><td>Park idle capital with minimal volatility.</td><td><p>1. Go to Lending → USDC → Deposit. </p><p>2. Monitor pool utilization; migrate when utilization is above 60%.</p></td></tr><tr><td>Validator Boost</td><td>Stake $JURIS (Tier 2 or higher) and delegate $LUNC to the Juris Validator to earn double-compounding yield.</td><td>Long-term believers in the Terra Classic revival.</td><td><p>1. Stake $JURIS Tier 2+. </p><p>2. Delegate $LUNC to the Juris Validator in Galaxy Station. </p><p>3. Harvest and restake weekly.</p></td></tr></tbody></table>

***

### Leverage and Directional Plays

Advanced tactics for users with high-conviction market views who wish to amplify their exposure.

| **Strategy**               | **Core Idea**                                                                                                                     | **Setup**                                                                                                                    | **Key Risks and Controls**                                                 |
| -------------------------- | --------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------- |
| Recursive Long ("Looping") | Deposit $LUNC → Borrow $USDC → Swap to $LUNC → Redeposit. Amplify exposure while farming lending spread.                          | 1. Open Borrowing Account A. 2. Deposit $LUNC, borrow 50% LTV in $USDC. 3. Swap USDC for LUNC and redeposit.                 | Price Volatility: Monitor Health Factor (HF) closely. Stop when HF is 1.5. |
| Stablecoin Short           | Bearish on $LUNC? Borrow $LUNC against $USDC collateral, sell for $USDC, and buy back at a lower price.                           | 1. Deposit $USDC in Borrowing Account B. 2. Borrow $LUNC and swap to $USDC. 3. When price falls, buy back cheaper and repay. | Sudden Rallies: Set stop-loss buy orders. Keep borrow APR under 20%.       |
| Perp Proxy                 | Pair Looping Long with a Stablecoin Short in a second account to mimic perpetual-futures leverage but with on-chain transparency. | Long-term directional conviction with hedging flexibility.                                                                   | Maintain separate accounts so each HF is independent.                      |

***

### Delta-Neutral and Carry Farms

Strategies focused on mathematical spreads rather than price direction.

| **Name**              | **Mechanism**                                                                                              | **Expected Return**                                    | **Procedure**                                                                                                     |
| --------------------- | ---------------------------------------------------------------------------------------------------------- | ------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------- |
| Net-Zero Borrow Loop  | Deposit a multi-asset basket and borrow an equal USD value of stables to lend back out.                    | 2–5% net APY when borrow rate < lend APR.              | 1. Basket deposit (e.g., 50% $LUNC, 50% $ATOM). 2. Borrow $USDC. 3. Deposit $USDC into Lending.                   |
| Liquidation-Bid Hedge | Place low-discount bids (8–10%) on assets you are neutral in to acquire collateral cheaply during crashes. | Occasional deep discounts + yield on idle stablecoins. | 1. Move $USDC to Liquidation Markets. 2. Ladder bids across 8%, 12%, and 16%. 3. Cancel bids if volatility cools. |

***

### Collateral Management Best Practices

Keeping a healthy Health Factor (HF) and avoiding surprise liquidations is simpler than it sounds.

Use the tips below any time you open a borrowing account or change an existing one.

| Tip                                       | Why It Helps                                                                                                   | How to Do It (Step-by-Step)                                                                                                                                                           |
| ----------------------------------------- | -------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Separate Goals into Separate Accounts** | If one idea goes wrong it won’t drag the rest down.                                                            | <p>• Click “Open borrowing account” for each strategy (e.g., Long LUNC, Short LUNC, Stable-farm).</p><p>• Name them clearly so you know which is which.</p>                           |
| **Mix Your Collateral**                   | Different tokens don’t fall (or rise) at the same time. A mixed “basket” keeps your HF steadier.               | <p>• Press “Add / Transfer collateral.”</p><p>• Add a stablecoin (e.g., $USDC) next to a volatile coin (e.g., $LUNC).</p><p>• Keep at least 30 % of the basket in a stable asset.</p> |
| **Watch the Traffic-Light Gauge**         | The coloured bar in Borrowing tells you when you’re safe (green), borderline (yellow) or risky (red).          | <p>• Aim to stay green (HF > 1.8).</p><p>• If it turns yellow (≈ 1.4) add collateral or repay a little.</p><p>• Never let it hit red (≤ 1.2).</p>                                     |
| **Keep a “Fee Wallet” Topped-Up**         | Interest and small service fees come from your Stable Balance—if it’s empty, borrowing can pause or liquidate. | <p>• In Portfolio → Stable Balance click “Deposit”.</p><p>• Add enough $USDC to cover 7 days of projected interest (shown right under the deposit box).</p>                           |
| **Set Free Alerts**                       | A message on Telegram / email is faster than checking charts all day.                                          | <p>• Go to Settings → Alerts.</p><p>• Turn on Health Factor < 1.4and Price drop > 10 %.</p><p>• Enter your email or Telegram handle.</p>                                              |
| **Plan for Bad Days**                     | Ask yourself: “If my coins drop 40 %, can I still sleep?”                                                      | <p>• Before clicking “Borrow” move the slider to see HF after a –40 % shock (displayed above the slider).</p><p>• If HF would be < 1.0, borrow less.</p>                              |
| **Review Weekly**                         | Markets change; a 5-minute check-in avoids drama later.                                                        | <p>• Every weekend: open Borrowing page.</p><p>• Check each account’s HF and Stable Balance.</p><p>• Top up or repay as needed—finished.</p>                                          |

> \[!NOTE]
>
> Remember: liquidations only happen if you let Health Factor fall below 1.0 and leave it there.

Maintaining financial health and reducing stress is easy with simple practices: use separate accounts, mix collateral, and ensure prompt top-ups.

#### Health-Factor Guardrails:

* 1.8 safe, 1.4 watch, < 1.2 add collateral or repay.
* Enable Telegram / e-mail alerts in Settings.

#### Stable Balance Buffer:

Hold ≥ 7 days of projected interest; prevents forced liquidation for unpaid interest.

#### Oracle Volatility Windows: Major news events? Raise HF before prints to avoid sudden TWAP dips.

***

#### Pro Tips for Long-Term Success

* Leverage responsibly: Recursive loops magnify both gains and liquidation risk. Always keep your Health Factor (HF) healthy and your Stable Balance funded to cover interest.
* Delta-neutral farms can yield low-risk carry specifically when your Borrow APR < Lend APR. Monitor these spreads daily, as on-chain utilization shifts rapidly.
* Liquidation bidding isn’t just opportunistic, it indirectly insures the protocol. To be effective, ladder your discounts (e.g., 5%, 10%, 15%) and remember to cancel stale bids if market conditions stabilize.
* Master the Cross-chain path: Use the IBC Bridge to open extra yield paths across the Cosmos ecosystem. Just remember to factor bridge fees and chain-native gas into your final ROI calculations.

Master these playbooks, stay disciplined, and let Juris Protocol’s on-chain analytics guide each move. Your portfolio, and the Terra Classic ecosystem, will thank you.

***