maxmaher
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Buy Alert - Stablecoin Lending
🕑 Added 2022-01-22 00:08:50 +0000 UTCAdding a bit more passive income to the portfolio through lending. I have begun lending out UST through Anchor Protocol.
My thought process:
I have always been a fan of rooting a portfolio in assets that earn me money no matter where the market is and this most recent downturn was the kick I needed to really look into UST lending.
I have lent out USDT for a while now on Kucoin and have averaged around 15% APY (it fluctuates a lot from day to day though)
UST lending through Anchor Protocol is 19.64% APY
The ultimate goal is to have some stablecoin lending diversification across a few protocols to help limit downside risk.
As of today, I am lending $41,000 UST on anchor with plans to increase that to $100K.
Steps I took:
1. Create Terra Station Wallet https://chrome.google.com/webstore/detail/terra-station-wallet/aiifbnbfobpmeekipheeijimdpnlpgpp
2. Head over to Kucoin https://www.kucoin.com/ucenter/signup?rcode=rJMS45S
3. Swap USDT for UST on the spot trade tab
4. Copy wallet address from Terra station
5. Paste into Kucoin
6. Choose the Luna network
7. Add a memo
8. Send a test transaction to make sure funds transfer properly. I like to do this since I’m neurotic lol.
9. Send over remaining funds
10. Head over to Anchor Protocol https://app.anchorprotocol.com/earn
11. Deposit UST
12. Confirm
Note:
There's a few ways to fund your Terra Station Wallet. If you don't have money on Kucoin you can use Coinbase as an on ramp:
1. Buy BTC on Coinbase https://coinbase-consumer.sjv.io/doDAV2
2. Send BTC to Kucoin
3. Move BTC to trading account on Kucoin
4. Swap BTC for UST on Kucoin
5. Move UST to main account on Kucoin
6. Send UST to Terra Station wallet
Warning:
There is slightly more risk to lending out money on a defi protocol vs in a centralized exchange
1. In defi you have an increased risk of hacks and bugs
2. In defi you have the human error risk being if lose you wallet seed phrase you are out of luck.
So be careful! Anchor is a huge protocol with billions of dollars locked but there's always some risk.
If all of this sounds a bit overwhelming to you.. don't worry! You're not alone. A more simple way to lend out stablecoins (I still do this to this day) is simply to lend USDT on Kucoin. Here is a tutorial: https://youtu.be/4Dc-0dh_dOo
Enjoy that juicy passive income!
Comments
Max, I recently learned of this site. Seems interesting. I thought you may appreciate looking into it. https://app.bancor.network/pools
Any comment on how the yield reserve seems to dropping fast because at the current total collateral is probably 30% less than the total deposit. Should we worry about if it can sustain through this crash at the moment??
Thanks Max, I just sent a chunk of UST over there by following your instructions. Question. I see that they offer some sort of protection or insurance on Anchor. Do you know anything about or recommend it?
Agreed I believe I have already found an amazing opportunity fort a flash loan but the process and protocol are so difficult to navigate.
also, how risky is to lend any token on kucoin? I have some tokens that can give up to 700+% interest on kucoin, so... any advice.
Can you make more content on Crypto Flash loans, you left me completely intrigued
Great!
Haven't looked much into it. Looks fairly complex.
Thanks for the heads up and the steps Max! I put in a small amount of 2k, it's my first time properly using wallets and a dapp so it was quite a fun process and I'm excited to see what else I can do!
Max what do you think about lending your Luna on Anchor in exchange for UST and then staking? https://twitter.com/milesdeutscher/status/1483036915196915712?t=-xne8RBgWw232nH3m8PKNw&s=19
Thank you, Max, for your easy to follow and thorough steps. Really helpful!
Thanks
Withdraw anytime. I don't think the rate will last forever, but they should remain there for a while.
Hello Max. Is this a locked staking or can you withdraw interest bearing money anytime without cuts of course. And how long will this interest rate last? Does it change?
Im not overly worried for the long run. Looking to make some additional buys in a few positions
Max im curious what are your thoughts on the latest crash? Prices are free falling
Max this is great! I started UST on anchor recently too. I just heard they are expanding to arbitrage trading/higher stable coin yield with something called White Whale that launches in a couple weeks but i’m still new and not sure of what it all means!
