Last updated on April 16th, 2022
You may have heard of the Anchor Protocol, which provides a rather high interest rate for UST.
If you’re looking to ‘stake’ your UST on the Anchor Protocol, here’s what you need to know:
How to ‘stake’ UST on Anchor Protocol
Here are 4 steps to ‘stake’ your UST on the Anchor Protocol:
- Send UST to your Terra Station wallet
- Connect your Terra Station wallet to Anchor Protocol
- Go to the ‘Earn’ tab and select ‘Deposit’
- Enter the amount of UST that you want to deposit and confirm the transaction
You can view a video guide here,
or you can read the text guide below:
Send UST to your Terra Station wallet
The first step you’ll need to do is to send UST to your Terra Station wallet.
You are only able to send UST via the Terra network to your Terra Station wallet, and not using the ERC20 network!
You can view my guide on sending UST to Terra Station to find out more.
Connect your Terra Station wallet to Anchor Protocol
The next step will be to connect your Terra Station wallet to Anchor Protocol.
To do so, you will need to select the ‘Connect Wallet‘ button on the right hand corner of the Anchor dashboard, and then select ‘Terra Station‘ as the option to connect your wallet.
After selecting the ‘Connect Wallet‘ button,
You will be given the option to either connect your Terra Station wallet via the Chrome extension, or via Wallet Connect.
If you already have the Chrome extension of Terra Station installed, it will connect to Anchor Protocol automatically.
Go to the ‘Earn’ tab and select ‘Deposit’
Once your Terra Station wallet is connected, you will need to go to the ‘Earn‘ tab on Anchor.
On the dashboard, you will need to go to select ‘Deposit‘.
This will allow you to deposit UST into Anchor Protocol.
Enter the amount of UST that you want to deposit and confirm the transaction
For the last step, you will need to decide the amount of UST you wish to deposit into Anchor Protocol.
Each transaction will incur a transaction fee, so you may want to minimise the number of transactions to deposit UST into Anchor Protocol.
However, the good thing is that the fees on the Terra network are much lower compared to other networks like Ethereum.
Once you have confirmed the transaction on your Terra Station wallet, the UST will be deposited into Anchor Protocol.
This will allow you to start earning interest on your UST!
When you deposit UST into Anchor, you will notice that your UST is now converted into aUST.
You can view my comparison between aUST and UST to find out more about these 2 cryptocurrencies.
Conclusion
The Anchor Protocol allows you to earn a rather decent interest rate on UST.
If you’re wondering how you can use the Anchor Protocol from Singapore, you can view my step-by-step guide here.
To do so, you will need to send UST to your Terra Station wallet and then deposit your UST into the protocol.
If you are just leaving your UST in your Terra Station wallet, it will not earn any interest!
After you have left your funds in Anchor for a while, you can view my guide here on how to withdraw it back to your Terra Station wallet.
If you’re looking to generate tax reports for your crypto trades, you can consider using Koinly, which allows you to track your transactions from 350+ exchanges and 50+ crypto wallets.
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