Anchor Protocol
If you are wondering how you can stake and earn upto 20% return, today you will learn how you can do it. Terra’s anchor protocol is here to solve all problems and you can start to earn your passive income.
What is Anchor Protocol?
Anchor protocol (ANC) is a saving, lending and borrowing platform built on Terra Blockchain. It is a saving protocol that provides its users a 20% low-volatile yield. The saving rate is funded via a combination of borrowers paying interest on UST loans and staking UST from their collateral.
Anchor is a part of the Terra ecosystem and it works with Terra Station. First thing is to download Terra station chrome extension or you can download its application on IOS and Android.
Get LUNA and UST tokens
To get LUNA and UST tokens, you can go to cointelegraph or coinmarketcap and look for the exchanges which offer both tokens. LUNA is available on Binance, Kucoin, Gate.io, Huobi, Kraken, FTX and several other exchanges.
UST is also available on several exchanges.
Next step is to buy coins and transfer them to your Terra Station wallet. Withdraw funds from exchange and put your Terra Wallet address in the withdrawal address. If you already have LUNA in your wallet, you can exchange them for UST from the swap option in Terra wallet. You can also buy UST directly from your wallet using debit card and bank transfers.
Now that you have your UST in your wallet, you need to stake them. Go to the anchor web app and go to the Earn tab to deposit your UST. Select the amount you wish to deposit and click deposit. After the deposit, you can see your earning rate and compare what you will get after a year, month, week and daily.
aUST is a token used for saving deposits on Anchor protocol. After depositing a certain amount, users automatically receive aUST tokens which can be used to generate income on Terra platform.
You can also borrow UST tokens from Terra Station app and stake them for earning, a certain amount of interest will be deducted from the earning if you borrow. For borrowing, you can go to the borrow tab.
Currently, the rate Anchor is providing is the highest compared to any other DEX which is 19.47
