In this article, I’m going to show you how you can start earning 19-20% APY in Anchor Protocol. I’ll go over what it is, and how to start investing in Anchor Protocol using different methods.
Btw, this is not financial advice. This is meant to be educational and I’m detailing how I’ve done it and how others may have done it, so you can start your own due diligence and invest in the platform too.
What is Anchor Protocol?
Anchor Protocol is a decentralized savings protocol inside the Terra network, offering low-volatile yields on Terra stablecoin deposits. There are 3 ways to utilize Anchor—by Earning, Borrowing and Governing in the platform. We are focusing on the Earn function of Anchor, so I will not go over Borrowing or Governing in this article.
I have to say though that the world of decentralized finance is a bit complex and the steps to get in on these platforms can be intimidating for the newbie, and even average, investor. But this goes to show that if a person really wants to profit from these platforms, they will take action. As they say, “where there is a will, there is a way.”
Creating a Terra Wallet
To access any Terra platforms, you will need a Terra Wallet.
- Download the Terra Station browser extension. Once installed, click the satellite icon on your browser’s extension list.
- Create a wallet name, a password and write down the mnemonic or secret phrase. Never let anyone see what this is.
- After creating your Terra wallet, open the extension to see your wallet information.
- Click ‘Add tokens’ and search for LUNA and UST. Then, click the ‘+’ icon on the right side to add them to your wallet.
- Your Terra Wallet address will be at the top, and it starts with ‘terra1’. We will use this later.
The Coinbase Option
Coinbase → Metamask →Terra Bridge → Terra Wallet
In Coinbase:
- Log in to your Coinbase account.
- Search the UST token in Coinbase.
- Buy your desired amount of UST.
- In your Metamask wallet, make sure to select the Ethereum Mainnet as your network, and copy your Metamask wallet address.
- Back in Coinbase, paste the address, choose your UST amount, and add a memo in the Coinbase purchase screen.
- You will have to pay fees to move your UST out of Coinbase.
In Terra Bridge:
- Go to https://bridge.terra.money/ and connect your Metamask Wallet.
- On the left column, select the Ethereum network. On the right column, select the Terra network.
- Put in the amount of UST you wish to swap for the Terra network UST.
- Add your Terra wallet address, and confirm the transaction.
KuCoin Option
KuCoin → Terra Wallet
In KuCoin:
- Log in to your KuCoin account, and get UST by trading the USDT/UST pair.
- If you don’t have USDT in your account, buy USDT by going to the “Buy Crypto” tab using fiat currency. You can choose “Fast Trade” or “P2P”.
- Once you have USDT, go to the “Trade” tab and select “Spot Trading”. Look up the pairing USDST/UST and buy UST using USDT.
- Once you have UST, hover to your “Assets Overview” at the top right corner (wallet icon) and click “Trading Account.”
- Type in “UST” and select “Transfer” next to the UST token.
- Confirm that the direction you are moving your funds to is the “Main Account,” and select the balance you wish to transfer. Press “Confirm” when done.
- Go to the “Withdraw” tab, type in UST in the search box and select “UST TerraUSD” in the dropdown.
- In the new screen, paste your Terra wallet address, select LUNA for your network, enter the desired amount you wish to transfer, and add remarks on the transaction for your own records.
- Press the “Confirm” button after reviewing your transaction.
- A confirmation pop-up will appear where you can review again the transaction. Confirm again.
- A verification screen will appear where you will put a verification code, your trading password and 2FA code. Confirm when done.
The Kado Money Option
Kado Money → Anchor Protocol
In Kado Money:
- Go to https://ramp.kado.money/
- In the “Buy Stablecoins” screen, input how much you want to buy in UST, with the corresponding fiat currency you wish to use.
- Click “Buy Now” when done. A flat fee of 2 UST will be automatically deducted from your purchase spend.
- In the next screen, add your Terra wallet details and add a memo.
- In the next screen, Kado will ask to verify your email. This happens to everyone even if you have a Kado account already because they send a verification code to you.
- Provide the verification code sent to you email and create or put in your Kado account password.
- In the “Payment Options” screen, you are given two choices to buy UST: Pay with Debit/Credit Card or a Bank Transfer (US only).
- I recommend paying with your debit/credit card for now since you are more likely to encounter an error using a bank transfer (just like I did).
- After adding your payment method, you will be taken to an order confirmation screen. Complete other required info and click the “Submit” button.
- The transaction usually completes in less than 5 minutes. Your UST should be available in you Terra Station wallet.
In Anchor Protocol:
- Go to https://app.anchorprotocol.com/
- Go to the “Earn” tab.
- Connect your Terra Station wallet in the top right.
- After connecting your wallet, click the “Deposit” button below the “Total Deposit” section.
- A pop up will appear, where you can deposit the amount you wish to use in Anchor. Make sure to leave 0.25 UST to pay for the transaction fee.
- After reviewing your deposit, click “Proceed” to finalize your transaction.
- And you’re all set!