Following the Terra crash, I just today remembered that I had previously posted about Anchor Protocol, and separately about Beefy Finance liquidity pools (LPs). My experience has been:
When UST started crashing I withdrew all of my UST from Anchor Protocol and converted to USDC, losing a significant but not major amount in the process.
During that crash period my Beefy Finance LPs actually performed very well with the APY values spiking very high. However, as some of my LPs were based on the USDC-DEI pair, and with DEI being an algorithmic stablecoin, on Saturday 14-May I closed all of my LPs and converted to USDC. This approach was timely because DEI crashed on Sunday 15-May.
Next I moved my USDC to Nexo and Celsius, getting 8%.
My learnings:
Stay away from algorithmic stablecoins like UST and DEI. I expect that this will be a forever policy for me, but in the world of DEFI anything is possible. That is, perhaps there will be algorithmic stablecoins in the future that are genuinely safe.
I am avoiding Beefy Finance LPs for now, but I expect that I will revisit LPs later, probably not until I think that the crypto winter has run its course.
